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Sprouts Farmers Market, Inc (S2FM34) Fair Value & Analysis

Consumer Defensive · BR · Market cap R$13.0B

SF Sprouts Farmers Market, Inc S2FM34 · SA
PriceR$145.34
Fair ValueR$111.37
Upside-23.4%
Quality72/100
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Healthy Growth
Thin margins · 5.7% net margin
Low debt · generates free cash flow
Ranks above peers (11/14)
Moderate moat 60/100
Evidence: High Range R$75.90 – R$139.21 Share as image

Fair value as of: Jul 20, 2026

From 24 valuation models · updated 21 days ago

Share price +1.3% over the past month.

A solid business, but screening 23% overvalued on our models.

What matters now

  • A high-quality business (quality 72/100), 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 (R$139.21). The favourable scenario is already priced in.
  • A fairly wide model range (R$75.90 to R$139.21) leaves room in how you read the outcome.
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Price vs Fair Value (4 years)

R$355.00 R$37.71 Fair Value R$111.37 May 2022 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 20, 2026.

How to read this chart

50‑month range R$37.71 – R$355.00 · fair‑value band R$75.90 – R$139.21 · the R$145.34 price screens above the R$111.37 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 20, 2026.

Full chart & analysis →

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Analysis

Sprouts Farmers Market, Inc (S2FM34) currently trades at R$145.34, while our model-based Fair Value estimate is R$111.37, implying the stock looks roughly 23.4% overvalued today. The Quality Score stands at 72/100 (solid quality), in the Consumer Defensive sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Sprouts Farmers Market, Inc generated revenue of R$8.9B at a net margin of 5.7%. Revenue grew 4.1% year over year. It earns a return on equity of 37.3%. The stock trades on a trailing P/E of 4.9. Fundamentals as of Jul 20, 2026

Our scenario range runs from R$75.90 (bear case) to R$139.21 (bull case); at R$145.34, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 54% below its 52-week high and 27% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at -31% fair-value upside, at -23%, S2FM34 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF R$66.55 R$116.75 R$202.87 80
Rev-Margin DCF R$67.73 R$119.15 R$186.48 74
ROIC Compounder R$62.70 R$80.12 R$100.77 72
All 24 models by family
DCF Models
FCF DCF R$67.25 R$122.57 R$220.49 38
Owner Earnings R$62.42 R$113.65 R$204.32 31
5Y Revenue Exit R$67.73 R$120.81 R$193.81 39
5Y EBITDA Exit R$78.09 R$142.43 R$224.23 41
5Y P/E Exit R$75.58 R$137.19 R$208.58 38
10Y Revenue Exit R$64.74 R$115.46 R$195.06 36
10Y EBITDA Exit R$73.95 R$131.43 R$220.84 37
10Y P/E Exit R$72.28 R$127.56 R$207.58 35
Earnings-Based
Graham-Dodd R$37.86 R$183.48 R$252.72 54
Lynch FV R$49.11 R$70.16 R$91.21 50
PEG = 1.0 R$49.11 R$70.16 R$91.21 46
EPV R$56.89 R$66.04 R$74.05 59
Multiples
P/E Multiple R$83.52 R$111.37 R$139.21 63
P/S Multiple R$71.00 R$94.66 R$118.33 58
P/B Multiple R$33.57 R$44.76 R$55.95 55
EV/EBIT R$100.50 R$133.33 R$166.16 53
EV/EBITDA R$89.49 R$118.65 R$147.81 54
EV/Revenue R$68.39 R$96.85 R$125.30 43
Asset-Based
NCAV (Graham) R$7.46 R$10.00 R$14.92 50
Growth DCF
Growth DCF R$66.55 R$116.75 R$202.87 80
Rev-Margin DCF R$67.73 R$119.15 R$186.48 74
Economic Profit
Residual Income R$41.56 R$60.52 R$639.10 61
ROIC Compounder R$62.70 R$80.12 R$100.77 72
Growth Earnings
Growth-Adj P/E R$74.40 R$106.29 R$138.17 68

Widest divergence: DCF Models (R$122.57) versus Asset-Based (R$10.00). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) R$8.9B
Revenue growth (YoY) +4.1%
Net margin 5.7%
Return on equity 37.3%
Free cash flow R$468M FY2025
P/E ratio 4.9
More key figures
Operating margin 9.2%
EPS (TTM) R$26.39
EPS growth (YoY) -5.5%

Figures from reported company fundamentals · as of Jul 20, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 72/100

Of which business quality 70 · Market factors (momentum, volatility) 32

Profitability 82
Margins and returns on capital today
Quality Growth 60
Are margins and returns improving?
Cashflow 45
Earnings quality: real cash, not paper profit
Fin. Strength 72
Balance sheet, leverage, solvency risk
Investment 64
Disciplined investing over empire-building
Low Volatility 48
Calm price path (market factor)
Momentum 36
Price trend over the last 3–12 months (market factor)
52W Momentum 8
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Sprouts Farmers Market, Inc., together with its subsidiaries, engages in the retailing of fresh, natural, and organic food products in the United States. The company offers healthy grocery stores; and lifestyle-friendly ingredients such as organic, plant-based, keto, paleo, non-GMO, and gluten-free.

Full company description

Sprouts Farmers Market, Inc., together with its subsidiaries, engages in the retailing of fresh, natural, and organic food products in the United States. The company offers healthy grocery stores; and lifestyle-friendly ingredients such as organic, plant-based, keto, paleo, non-GMO, and gluten-free. The company also offers perishable product categories, including produce, meat and meat alternatives, seafood, deli, bakery, floral, and dairy alternatives; and non-perishable product categories, such as grocery, vitamins and supplements, bulk items, frozen foods, beer and wine, and natural health and body care. It sells its products under the Sprouts brand. The company was founded in 1943 and is headquartered in Phoenix, Arizona.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2025 · reported fiscal years

Sprouts Farmers Market, Inc reported revenue of R$8.8B in FY2025 versus R$6.4B in FY2022, a compound +11.2%/yr. Reported net income was R$524M in FY2025, compounding +26.1%/yr from FY2022.

Growth Quality 84/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
R$8.8B
Latest YoY
+14.1%
Avg. growth/yr (3Y)
+11.2%
Revenue +11.2%/yr
FY22 R$6.4B
FY23 R$6.8B
FY24 R$7.7B
FY25 R$8.8B
Net income +26.1%/yr
FY22 R$261M
FY23 R$259M
FY24 R$381M
FY25 R$524M

S2FM34 screens 23% overvalued. Compare with Loblaw Companies Limited →

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Cite: Fair Value Calculator (2026). "Sprouts Farmers Market, Inc Fair Value". https://www.fairvalue-calculator.com/stock/S2FM34

Peer Group

Grocery Stores · 83 stocks

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.

Quality Score 72 · Top 25%
Fair Value upside −23% · Below median
Return on equity (TTM) 37% · Top 25%
Return on assets 11% · Top 25%
Net margin (TTM) 6% · Top 25%
Operating margin (TTM) 9% · Top 25%
Revenue growth 4% · Above median
Debt / equity 0.05× · Lower than median

Valuation Multiples vs Grocery Stores median · lower = cheaper

P/E (TTM) 5.1× · Cheaper than 75% of peers
P/B 1.82× · Pricier than median
P/S (TTM) 0.29× · Cheaper than median
P/FCF 5.5× · Pricier than median
EV/EBITDA 2.8× · Cheaper than 75% of peers
PEG 0.37× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 2 · sector 36
FUTURE 21 · sector 17
PAST 100 · sector 51
HEALTH 98 · sector 92
DIVIDEND 0 · sector 48

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Grocery Stores stocks, each showing price versus our Fair Value estimate (as of Jul 20, 2026).

Stock Price Fair Value vs Fair Value
Loblaw Companies Limited L C$65.49 C$44.44 -32%
Koninklijke Ahold Delhaize N.V AD €36.30 €53.50 +47%
The Kroger Co KR $58.82 $28.19 -52%
Woolworths Group WOW A$39.20 A$13.40 -66%
George Weston Limited WN C$100.98 C$63.61 -37%
Coles Group COL A$23.56 A$15.86 -33%
Metro Inc MRU C$93.64 C$94.01 +0%
Carrefour SA CA €16.40 €11.51 -30%
CP ALL Public Company TCPD 1.89 SGD 2.36 SGD +25%
BIM Birlesik Magazalar A.S., BIMAS 385.75 TRY 267.12 TRY -31%

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Frequently asked questions

Is Sprouts Farmers Market, Inc (S2FM34) overvalued or undervalued?
As of Jul 20, 2026, our model estimates a fair value of R$111.37 versus a price of R$145.34, about −23% (overvalued).
What is the fair value of S2FM34?
Our model-based fair value for Sprouts Farmers Market, Inc is R$111.37 (as of Jul 20, 2026), built from audited fundamentals. The current price is R$145.34.
What is the quality score of S2FM34?
Sprouts Farmers Market, Inc has a Quality Score of 72/100. 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 revenue of Sprouts Farmers Market, Inc (S2FM34)?
Sprouts Farmers Market, Inc reported trailing-twelve-month revenue of about R$8.9B (latest available figure, as of Jul 20, 2026).
What is the net profit margin of S2FM34?
The net profit margin of Sprouts Farmers Market, Inc is about 5.7%, meaning it keeps roughly 5.7% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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