Kroger Co (KR) is overvalued and Sprouts Farmers Market Inc (SFM) is slightly undervalued.
Against our estimates of intrinsic value, SFM trades at the wider discount: a margin of safety of +14%, against -83% for KR.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 7.0% (average of 3 methods) values the shares at $31.93; the price of $58.56 is 83% above that value, and 83% of that value comes from beyond year five.
Leak Score 43/100 on 10 of 12 signals
Discounting its cash flows at 7.9% (average of 3 methods) values the shares at $79.58; the price of $68.68 is 14% below that value, and 80% of that value comes from beyond year five.
Leak Score 81/100 on 3 of 12 signals
| Metric | KR | SFM |
|---|---|---|
| Verdict | Overvalued | Slightly undervalued |
| Price | $58.56 | $68.68 |
| Intrinsic value | $31.93 | $79.58 |
| Margin of safety | -83% | +14% |
| Leak Score | 43/100 (10/12) | 81/100 (3/12) |
| Market cap | $34.6B | $6.4B |
| Revenue growth, 5 years | 2.2% | 6.4% |
| Operating margin | 3.2% | 7.5% |
| Net margin | 0.7% | 5.6% |
| Return on equity | 14.2% | 35.2% |
| Debt to equity | 4.14 | 1.40 |
| P/E | 31.7x | 13.2x |
| Forward P/E | 10.6x | 11.5x |
| P/B | 6.0x | 4.3x |
| Dividend yield | 2.6% | — |