Loblaw Companies Limited (L) fair value: what the stock is really worth
As of Oct 23, 2026: fair value (intrinsic value) of Loblaw Companies Limited stock C$44.76, price C$68.67, upside -34.8%, quality 70 out of 100. Rating: overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
Fair value above price?No
Good quality?Yes
Keep an eye on it?Free in your watchlist: 5 stocks without an account, 10 with oneYes, for free
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Oct 22, 2026.
How to read this chart
60‑month range C$18.03 – C$70.66 · fair‑value band C$29.43 – C$60.58 · the C$68.67 price screens above the C$44.76 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Oct 22, 2026.
Follow Loblaw Companies in your weekly email
Every Wednesday you see whether Loblaw Companies is on track or worth a review, plus price against fair value. Free, up to 3 stocks.
We send you a confirmation link. Unsubscribe with one click.
Loblaw Companies Limited, a food and pharmacy company, provides grocery, pharmacy and healthcare services, health and beauty products, apparel, general merchandise, financial services, and wireless mobile products and services in Canada and the United States.
Show moreShow less
It operates through two segments, Retail and Financial Services. The Retail segment operates corporate and franchise-owned retail food, and associate-owned drug stores.
This segment also includes in-store pharmacies, health care services, other health and beauty product stores, apparel stores, and other general merchandise stores.
Its Financial Services segment provides credit card and banking services, the PC Optimum loyalty program, insurance brokerage services, and telecommunication services.
The company offers PC Health app, which provides healthcare resources and support services; and outpatient physiotherapy, massage and occupational therapy, chiropractic, mental health, and other rehabilitation services.
It sells its products and services under the President's Choice, PC, Life Brand, no name, Farmer's Market, and Joe Fresh brands through its hard discount format stores under the No Frills and Maxi brands; supermarket format stores under the Loblaws, Zehrs, Your Independent Grocer, Real Canadian Superstore, Real Atlantic Superstore, Provigo, City Market, brands; and stand-alone drug stores under the Shoppers Drug Mart and Pharmaprix brands.
The company also operates T&T Supermarket stores serving Asian grocery markets; provides online grocery ordering and pickup services through PC Express; and offers banking and financial services through PC Financial. The company was founded in 1919 and is headquartered in Brampton, Canada.
Loblaw Companies Limited is a subsidiary of George Weston Limited.
Stock analysis
Loblaw Companies Limited (L) currently trades at C$68.67, while our model-based Fair Value estimate is C$44.76, 34.8% below the price, so the stock looks overvalued today.
Show more
Valuation
Bull case: the DCF Models group reads highest at a median of C$54.78 per share, and 4 of the 25 models we run sit above the C$68.67 price.
Bear case: the Dividend Discount group reads lowest at C$11.32, and 21 of the 25 models stay below the price. Data coverage for this calculation is low.
Scenario range: C$29.43 (bear) to C$60.58 (bull), the price of C$68.67 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 70/100 (solid quality), in the Consumer Defensive sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Loblaw Companies Limited reported revenue of C$63.9B in FY2025 versus C$53.2B in FY2021, a compound +4.7%/yr. Reported net income was C$2.7B in FY2025, compounding +9.2%/yr from FY2021.
Key figures
Market cap C$80.3B (≈ $57.3B) · P/E ratio 30.9 · P/S ratio 1.24 · EPS (TTM) C$2.22 · Dividend yield 0.8% · Net margin 4.3% · Return on equity 24.5% · Return on assets (EBIT) 9.3%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 55 out of 100 (low confidence).
What moves the price
The share trades about 3% below its 52-week high and 27% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Consumer Defensive peers we cover trades at −34% fair-value upside, at −35%, L screens richer than that median.
Fair Value models
BearC$29.43Fair Value C$44.76BullC$60.58
Price C$68.67 · Upside -34.8%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then (C$1.35 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.66/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+4.7%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+4.2%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+3.9%
Start year 2020 (pandemic)
Revenue growth 7 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+4.6%
’14
’15
’16
’17
’18
’19
’20
’21
’22
’23
’24
’25
What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: EBIT basis.
+18.4%
Earnings growth per share plus dividend.
Earnings per share, growth per year+17.6%
Dividend (yield on the price)0.8%
Per share before 2018divided by the spin-off factor 1.244
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.23.5% vs 22.6%, steady
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.5% → 7%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
Price in line with expectations
The price assumes about as much growth as the company has delivered so far and about what analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+5.4%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+3.3%
Yearly sales growth analysts expect, extended to five years.
After inflation (Canada: IMF forecast 2.1% a year to 2030, 2.6% from 2016 to 2025) that is about +3.2% a year for the price and +1.2% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (89 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Neutral
Recent news coverage is roughly neutral, about typical for how stocks are covered.
AI conclusion: Targeted supply-chain automation supports tighter cost control across the large grocery and pharmacy network, yet limited signals of a durable moat leave the business exposed amid intense retail competition.
Main risk: Supplier-driven minimum advertised pricing rules could offset efficiency gains from supply-chain upgrades and directly pressure margins in the grocery and pharmacy operations.
Loblaw is expanding AI-powered gate automation at its distribution centers to cut truck processing times from minutes down to seconds while improving data accuracy and yard visibility. These targeted upgrades support tighter cost control in its large-scale grocery and pharmacy network. Our models see it as overvalued. Will the efficiency gains from this supply-chain technology outweigh the effects of supplier-driven minimum advertised pricing rules?
Compare Loblaw Companies Limited with another stock
Price, fair value, quality and upside side by side.
Free, no sign-up
Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Grocery Stores · 72 stocks
Beats the industry median on 0/2 measures
Overall it trails its industry peers.
Growth and dividend
Dividend yield (12 months)0.8% · Bottom 25%
Valuation Multiplesvs Grocery Stores median · lower = cheaper
P/E (12 months)30.9× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 37
FUTURE (revenue growth)21· sector 13
PAST (return on equity)98· sector 49
HEALTH (low debt)73· sector 90
DIVIDEND (yield)17· sector 55
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is Loblaw Companies Limited (L) overvalued or undervalued?
As of Oct 22, 2026, our model estimates a fair value of C$44.76 versus a price of C$68.67, about −35% upside (overvalued).
What is the fair value of L?
Our model-based fair value for Loblaw Companies Limited is C$44.76 (as of Oct 22, 2026), built from audited fundamentals. The current price: C$68.67.
What is the quality score of L?
Loblaw Companies Limited has a Quality Score of 70/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Loblaw Companies Limited (L)?
Our model-based price target is the fair value of C$44.76 (as of Oct 22, 2026) from 25 valuation models. Cautious scenario C$29.43, optimistic scenario C$60.58. It is a calculation from audited fundamentals, not an analyst target.
What is the Loblaw Companies Limited stock forecast for 2026?
Our models put fair value at C$44.76, about −35% upside versus a price of C$68.67 (overvalued). Cautious scenario C$29.43, optimistic scenario C$60.58. The calculation is refreshed regularly with new filings.
What is the revenue of Loblaw Companies Limited (L)?
Loblaw Companies Limited reported trailing-twelve-month revenue of about C$65.1B (latest available figure, as of Oct 22, 2026).
Does Loblaw Companies Limited pay a dividend?
Loblaw Companies Limited currently shows a dividend yield of 0.84% relative to its recent price (as of Oct 22, 2026).
What growth is priced into Loblaw Companies Limited (L)?
For today's price to be fair in a discounted-cash-flow model, Loblaw Companies Limited would have to grow free cash flow by +5.4 % per year for five years (discount rate 7.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +3.9 % per year. As of Oct 22, 2026.
What discount rate (WACC) does the fair value of L use?
Our models discount Loblaw Companies Limited at 7.9 %: a base by market capitalisation (large), damped by beta 0.33, country premium for Canada. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Loblaw Companies Limited that is +5.4 % per year a year over ten years, using the same discount rate (7.9 %) and the same formula as our fair value.
How much growth has Loblaw Companies Limited (L) delivered so far?
Over the past 5 years revenue at Loblaw Companies Limited grew +3.9 % a year. The price currently implies +5.4 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Loblaw Companies Limited (L) growing?
The median revenue growth in the sector is +3.3 % a year. That is the yardstick for the growth priced into Loblaw Companies Limited (+5.4 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Loblaw Companies Limited (L)?
The free-cash-flow yield on the price is 5.10 %: that much free cash flow Loblaw Companies Limited produces per unit of market value. When it exceeds the discount rate of our models (7.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Loblaw Companies Limited (L)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Loblaw Companies Limited it is C$44.76 per share (as of Oct 22, 2026), against a price of C$68.67. It is the blended result of 25 valuation models (cash flow, earnings, asset, dividend).
Is Loblaw Companies Limited stock overvalued or undervalued in 2026?
As of Oct 22, 2026, L trades above its calculated fair value: price C$68.67, fair value C$44.76, a gap of about −35% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of L?
No. The price is what the market pays today (C$68.67); the fair value is what the company's own numbers justify (C$44.76). For Loblaw Companies Limited the two are C$23.91 per share apart. That gap is exactly why we show both numbers side by side.
How much is Loblaw Companies Limited worth?
The market values Loblaw Companies Limited at about C$80.3B (market capitalisation, as of Oct 22, 2026). Per share that is C$68.67; our models calculate a fair value of C$44.76 per share.
What do the bullish and bearish scenarios say about L?
Our models span a range for Loblaw Companies Limited: cautious scenario C$29.43, base C$44.76, optimistic C$60.58 per share (as of Oct 22, 2026, price C$68.67). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of L?
Loblaw Companies Limited trades at a price-to-earnings ratio of 30.9 (as of Oct 22, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of C$44.76 is built from several models across several years.
How far is L from its 52-week high?
Loblaw Companies Limited trades at C$68.67, about 3% below its 52-week high of C$70.66 and 27% above the low of C$54.19 (as of Oct 23, 2026). Distance from the high says nothing about value: that is what the fair value of C$44.76 is for.
Which stocks are comparable to Loblaw Companies Limited?
From the same area (Consumer Defensive) we also value The Kroger Co, Woolworths Group, Koninklijke Ahold Delhaize N.V, George Weston Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Loblaw Companies Limited stock attractive at the current price?
The data as of Oct 22, 2026: price C$68.67, calculated fair value C$44.76 (−35%), Quality Score 70/100, from 25 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of L calculated?
We run Loblaw Companies Limited through 25 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of C$44.76, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 12.7 % above its aggregate fair value. Loblaw Companies Limited itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Loblaw Companies Limited (L)?
The closing price on Oct 23, 2026 was C$68.67. Our model-based fair value is C$44.76, about −35% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Loblaw Companies Limited right now?
A high-quality business (quality 70/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety. The price sits above even our optimistic bull case (C$60.58). The favourable scenario is already priced in. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution. A fairly wide model range (C$29.43 to C$60.58) leaves room in how you read the outcome.
Where does the earnings growth of Loblaw Companies Limited (L) come from?
Earnings per share at Loblaw Companies Limited grew +20.9 % a year from 2014 to 2025. Broken into its drivers: revenue per share +6.7 %, EBIT margin +8.1 %, tax rate +1.1 %, residual (interest, one-offs) +3.7 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Loblaw Companies Limited
How large is the market capitalisation of Loblaw Companies Limited (L)?
The market capitalisation of Loblaw Companies Limited is C$80.3B (≈ $57.3B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Loblaw Companies Limited (L)?
The price-to-sales ratio of Loblaw Companies Limited is 1.24 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Loblaw Companies Limited (L)?
Earnings per share at Loblaw Companies Limited are C$2.22 (price ÷ EPS = P/E 30.9). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Loblaw Companies Limited (L)?
The dividend yield of Loblaw Companies Limited is 0.8% (payout 26.0%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Loblaw Companies Limited (L)?
The net margin of Loblaw Companies Limited is 4.3% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Loblaw Companies Limited (L)?
The return on equity (ROE) of Loblaw Companies Limited is 24.5% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Loblaw Companies Limited (L)?
On an EBIT basis the return on assets of Loblaw Companies Limited is 9.3% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Loblaw Companies Limited (L)?
The operating margin of Loblaw Companies Limited is 8.0% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Loblaw Companies Limited (L)?
Revenue at Loblaw Companies Limited is growing +4.1% versus a year earlier (3y avg +4.2%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Loblaw Companies Limited (L)?
Earnings per share at Loblaw Companies Limited are growing +8.4% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Loblaw Companies Limited (L) carry?
The net debt of Loblaw Companies Limited is C$24.1B (fiscal year 2025, ≈ 5.9 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
Free · no account needed
Watch Loblaw Companies Limited in the live analysis
One click puts Loblaw Companies Limited on your watchlist: fair value and trend at a glance, plus comparison, the diversification check and the 28,000+ stock screener.
Thin data
Oct 22, 2026