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

Consumer Defensive · US · Market cap $7.1B

SF Sprouts Farmers Market, Inc logo Sprouts Farmers Market, Inc SFM · US
Price$85.86
Fair Value$107.01
Upside+24.6%
Quality73/100
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Healthy Growth
Thin margins · 5.7% net margin
Low debt · generates free cash flow
Ranks above peers (10/14)
Moderate moat 62/100
Evidence: High Range $74.68 – $141.03 Share as image

Fair value as of: Jul 15, 2026

From 26 valuation models · updated 25 days ago

Share price +7.0% over the past month.

A solid business, screening 25% undervalued on our models.

What matters now

  • A fairly wide model range ($74.68 to $141.03) leaves room in how you read the outcome.
  • Our model range runs from $74.68 (bear) to $141.03 (bull), base $107.01. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 73/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

$179.53 $21.76 Fair Value $107.01 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 15, 2026.

How to read this chart

60‑month range $21.76 – $179.53 · fair‑value band $74.68 – $141.03 · the $85.86 price screens below the $107.01 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 15, 2026.

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Analysis

Sprouts Farmers Market, Inc (SFM) currently trades at $85.86, while our model-based Fair Value estimate is $107.01, implying the stock looks roughly 24.6% undervalued today. The Quality Score stands at 73/100 (solid quality), in the Consumer Defensive sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Sprouts Farmers Market, Inc generated revenue of $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%. Net debt stands at $1.7B. Fundamentals as of Jul 15, 2026

Our scenario range runs from $74.68 (bear case) to $141.03 (bull case); at $85.86, the current price sits within 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 51% below its 52-week high and 33% 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 25%, SFM 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 $62.33 $106.46 $178.19 80
Residual Income $45.83 $78.16 $1,305 76
Rev-Margin DCF $66.09 $116.40 $182.12 74
All 26 models by family
DCF Models
FCF DCF $63.11 $112.34 $195.90 38
Owner Earnings $77.89 $138.90 $242.47 31
5Y Revenue Exit $66.09 $118.01 $189.30 39
5Y EBITDA Exit $85.59 $158.63 $251.58 41
5Y P/E Exit $76.01 $138.67 $211.17 38
10Y Revenue Exit $62.23 $110.74 $186.59 36
10Y EBITDA Exit $77.15 $140.01 $238.06 37
10Y P/E Exit $70.91 $125.63 $204.66 35
Earnings-Based
Graham-Dodd $37.86 $182.18 $250.81 54
Lynch FV $48.64 $69.49 $90.34 50
PEG = 1.0 $48.64 $69.49 $90.34 46
EPV $52.26 $60.29 $67.21 59
Dividend Discount
Gordon GGM $1.07 $2.13 $3.23 70
DDM Multi-Stage $1.07 $1.84 $2.25 61
Multiples
P/E Multiple $87.70 $116.93 $146.17 63
P/S Multiple $71.00 $94.66 $118.33 58
P/B Multiple $61.54 $82.06 $102.57 55
EV/EBIT $95.11 $126.34 $157.58 53
EV/EBITDA $104.61 $139.01 $173.41 54
EV/Revenue $68.28 $96.95 $125.61 43
Asset-Based
NCAV (Graham) $7.46 $10.00 $14.92 50
Growth DCF
Growth DCF $62.33 $106.46 $178.19 80
Rev-Margin DCF $66.09 $116.40 $182.12 74
Economic Profit
Residual Income $45.83 $78.16 $1,305 76
ROIC Compounder $57.67 $73.28 $91.58 72
Growth Earnings
Growth-Adj P/E $75.94 $108.48 $141.03 68

Widest divergence: DCF Models ($125.63) versus Dividend Discount ($1.84). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $8.9B
Revenue growth (YoY) +4.1%
Net margin 5.7%
Return on equity 37.3%
Free cash flow $468M FY2025
P/E ratio 15.4
More key figures
Operating margin 9.2%
EPS (TTM) $5.21
EPS growth (YoY) -5.5%
Net debt $1.7B FY2025

Figures from reported company fundamentals · as of Jul 15, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 73/100

Of which business quality 69 · Market factors (momentum, volatility) 38

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 68
Balance sheet, leverage, solvency risk
Investment 64
Disciplined investing over empire-building
Low Volatility 54
Calm price path (market factor)
Momentum 44
Price trend over the last 3–12 months (market factor)
52W Momentum 10
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

FY2021 – FY2025 · reported fiscal years

Sprouts Farmers Market, Inc reported revenue of $8.8B in FY2025 versus $6.1B in FY2021, a compound +9.6%/yr. Reported net income was $524M in FY2025, compounding +21.0%/yr from FY2021.

Growth Quality 72/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
$8.8B
Latest YoY
+14.1%
Avg. growth/yr (3Y)
+11.2%
Avg. growth/yr (5Y)
+6.4%
Avg. growth/yr (15Y)
+20.8%
Revenue +9.6%/yr
FY21 $6.1B
FY22 $6.4B
FY23 $6.8B
FY24 $7.7B
FY25 $8.8B
Net income +21.0%/yr
FY21 $244M
FY22 $261M
FY23 $259M
FY24 $381M
FY25 $524M

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

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

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 73 · Top 25%
Fair Value upside +25% · Above 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 0.09× · Lower than median

Valuation Multiples vs Grocery Stores median · lower = cheaper

P/E (TTM) 14.5× · Cheaper than median
P/B 5.05× · Pricier than 75% of peers
P/S (TTM) 0.80× · Pricier than 75% of peers
P/FCF 15.2× · Pricier than 75% of peers
EV/EBITDA 8.3× · Pricier than median
PEG 1.09× · Cheaper than median

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 66 · sector 36
FUTURE 21 · sector 17
PAST 100 · sector 51
HEALTH 96 · sector 92
DIVIDEND 0 · sector 48

Insider activity: 66/100

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 15, 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 (SFM) overvalued or undervalued?
As of Jul 15, 2026, our model estimates a fair value of $107.01 versus a price of $85.86, about +25% (undervalued).
What is the fair value of SFM?
Our model-based fair value for Sprouts Farmers Market, Inc is $107.01 (as of Jul 15, 2026), built from audited fundamentals. The current price is $85.86.
What is the quality score of SFM?
Sprouts Farmers Market, Inc has a Quality Score of 73/100. 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 (SFM)?
Sprouts Farmers Market, Inc reported trailing-twelve-month revenue of about $8.9B (latest available figure, as of Jul 15, 2026).
What is the net profit margin of SFM?
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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