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Sprouts Farmers Market Inc
NASDAQ:SFM

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Sprouts Farmers Market Inc
NASDAQ:SFM
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Price: 74.99 USD -0.4% Market Closed
Market Cap: $7.1B

EV/EBITDA

8
Current
29%
Cheaper
vs 3-y average of 11.4

Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBITDA
8
=
Enterprise Value
$6.9B
/
EBITDA
$849.5m

Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBITDA
8
=
Enterprise Value
$6.9B
/
EBITDA
$849.5m

Valuation Scenarios

Sprouts Farmers Market Inc is trading below its 3-year average

If EV/EBITDA returns to its 3-Year Average (11.4), the stock would be worth $106.35 (42% upside from current price).

Statistics
Positive Scenarios
3/4
Maximum Downside
-3%
Maximum Upside
+79%
Average Upside
39%
Scenario EV/EBITDA Value Implied Price Upside/Downside
Current Multiple 8 $74.99
0%
3-Year Average 11.4 $106.35
+42%
5-Year Average 7.8 $72.47
-3%
Industry Average 11.2 $104.44
+39%
Country Average 14.4 $134.09
+79%

Forward EV/EBITDA
Today’s price vs future ebitda

Today's Enterprise Value EBITDA Forward EV/EBITDA
$6.9B
/
Dec 2025
$849.5m
=
8
Current
$6.9B
/
Dec 2025
$844.3m
=
8.2
Forward
$6.9B
/
Dec 2026
$886.3m
=
7.8
Forward
$6.9B
/
Dec 2027
$922.2m
=
7.5
Forward
$6.9B
/
Dec 2028
$976m
=
7.1
Forward

Forward EV/EBITDA shows whether today’s EV/EBITDA still looks high or low once future ebitda are taken into account.

Peer Comparison

All Multiples
EV/EBITDA
P/E
All Countries
Close

Market Distribution

Lower than 80% of companies in the United States of America
Percentile
20th
Based on 9 875 companies
20th percentile
8
Low
0 — 10
Typical Range
10 — 21.5
High
21.5 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 10
Median 14.4
70th Percentile 21.5
Max 1 767 274.1

Sprouts Farmers Market Inc
Glance View

Sprouts Farmers Market Inc., a vibrant player in the grocery retail sector, is deeply embedded in the movement towards healthy living and sustainable food consumption. Established in 2002 in Chandler, Arizona, Sprouts has grown from a small fruit stand to a significant force in natural and organic groceries across the United States. The company has capitalized on the increasing consumer demand for fresh, minimally processed food, expanding its stores across a broad geographical footprint while maintaining a focus on affordability. A trip to a Sprouts location is designed to connect the urban consumer with farm-fresh products: the aisles are brimming with produce, natural meats, and organic dairy, supported by a commitment to health-oriented customer education through in-store events and nutritional expertise. The financial engine of Sprouts is driven by its ability to curate an assortment of niche products while still maintaining competitive pricing. Its strategic store layouts maximize efficient space usage, house a variety of private-label brands, and feature bulk sections that encourage shoppers to buy only what they need. This model not only appeals to the eco-conscious but also enhances profit margins by reducing costs associated with packaging and distribution. Additionally, Sprouts leverages a direct-to-consumer approach through community involvement and digital platforms, catering to the modern shopper's preference for convenient, on-demand information and shopping experiences. This strategic blend of operational efficiency, customer engagement, and a strong brand ethos focused on health and sustainability paves the way for its ongoing success in the retail market.

SFM Intrinsic Value
99.35 USD
Undervaluation 25%
Intrinsic Value
Price $74.99
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