Sprouts Farmers Market, Inc. (SFM) 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

+104.4%

$112.87

vs $55.23 price

Levered DCF

$85.55

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

3.78

Safe zone

Rating

A-

Overall 4 / 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	15.05×	33.59×	19.02×	13.43×	14×	8.24×	15.48×	19.11×
P/B	5.62×	9.67×	4.29×	3.35×	3.57×	2.69×	3.97×	5.14×
P/S	0.89×	1.66×	0.72×	0.55×	0.56×	0.37×	0.41×	0.58×
EV / EBITDA	9.61×	18.22×	9.8×	7.78×	8.18×	5.94×	9.29×	10.45×
Gross margin	37.1%	38.4%	37.1%	36.9%	36.4%	36.9%	33.8%	33.6%
Operating margin	7.8%	6.5%	5.1%	5.6%	5.5%	6.1%	3.9%	4.3%
Net margin	5.9%	4.9%	3.8%	4.1%	4.0%	4.4%	2.7%	3.0%
Current ratio	0.93×	0.99×	1.1×	1.29×	1.11×	0.94×	0.93×	1.08×
Debt / equity	1.39×	1.27×	1.45×	1.47×	1.57×	1.66×	2.98×	0.98×
Interest coverage	259.93×	87.31×	53.96×	32.38×	19.13×	20.51×	10.38×	8.01×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	37.3%	28.8%	22.5%	25.0%	25.4%	32.6%	25.7%	26.9%
Return on invested capital	15.2%	12.2%	9.1%	10.0%	9.9%	12.2%	6.9%	13.1%
Return on assets	12.6%	10.5%	7.8%	8.5%	8.4%	10.2%	5.5%	9.5%
Free cash flow yield	5.9%	3.2%	4.9%	7.1%	7.7%	15.7%	7.4%	3.9%
Earnings yield	6.6%	3.0%	5.3%	7.5%	7.1%	12.1%	6.5%	5.2%
Enterprise value	$9.6B	$14.2B	$6.4B	$4.8B	$4.7B	$3.7B	$4B	$3.6B
Net debt / EBITDA	1.69×	1.82×	2.24×	2.04×	2.2×	2.1×	3.87×	1.68×
Cash conversion cycle (days)	13	12	15	14	13	12	16	18