Loblaw Companies Limited (L.TO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+42.9%

CA$99.49

vs CA$69.63 price

Levered DCF

CA$79.98

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

3.67

Safe zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	27.7×	6.7×	4.86×	5.14×	4.72×	5.1×	5.72×	7.53×
P/B	6.68×	1.3×	0.89×	0.87×	0.76×	0.51×	0.54×	0.47×
P/S	1.15×	0.24×	0.17×	0.17×	0.17×	0.11×	0.13×	0.12×
EV / EBITDA	13.63×	4.66×	4.04×	4.19×	4.17×	4.13×	4.56×	3.88×
Gross margin	31.1%	32.3%	32.0%	31.8%	31.5%	30.3%	30.7%	30.4%
Operating margin	7.0%	6.4%	6.2%	5.9%	5.5%	4.5%	4.7%	4.1%
Net margin	4.2%	3.6%	3.5%	3.4%	3.5%	2.1%	2.3%	1.6%
Current ratio	1.08×	1.24×	1.25×	1.32×	1.37×	1.32×	1.23×	1.34×
Debt / equity	2.28×	1.73×	1.59×	1.56×	1.43×	1.51×	1.51×	0.75×
Interest coverage	5.85×	4.57×	4.43×	4.67×	4.3×	3.2×	3.01×	3.28×
Dividend yield	1.1%	3.2%	5.5%	5.4%	5.5%	10.4%	7.5%	7.6%
Payout ratio	30.4%	21.1%	26.8%	27.5%	25.8%	52.3%	42.6%	57.4%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	24.2%	19.6%	18.3%	17.0%	16.2%	10.1%	9.6%	6.3%
Return on invested capital	10.8%	9.0%	8.8%	8.1%	7.9%	5.8%	5.6%	4.4%
Return on assets	6.4%	5.3%	5.4%	5.0%	5.1%	3.1%	3.0%	2.5%
Free cash flow yield	5.6%	25.0%	35.3%	32.4%	41.5%	72.3%	45.2%	20.3%
Earnings yield	3.6%	15.0%	20.7%	19.6%	21.3%	19.9%	17.7%	13.3%
Enterprise value	CA$97.8B	CA$32.2B	CA$26.8B	CA$25.8B	CA$23.4B	CA$20.5B	CA$21.9B	CA$13.7B
Net debt / EBITDA	3.36×	2.57×	2.51×	2.6×	2.6×	3.01×	3.29×	2.26×
Cash conversion cycle (days)	2	23	29	30	30	26	33	30