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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: 81.85 USD 15.07% Market Closed
Market Cap: $7.7B

EV/GP

2.2
Current
9%
Cheaper
vs 3-y average of 2.4

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
2.2
=
Enterprise Value
$6.9B
/
Gross Profit
$3.4B

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
2.2
=
Enterprise Value
$6.9B
/
Gross Profit
$3.4B

Valuation Scenarios

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

If EV/GP returns to its 3-Year Average (2.4), the stock would be worth $90.36 (10% upside from current price).

Statistics
Positive Scenarios
3/4
Maximum Downside
-25%
Maximum Upside
+198%
Average Upside
57%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 2.2 $81.85
0%
3-Year Average 2.4 $90.36
+10%
5-Year Average 1.6 $61.05
-25%
Industry Average 3.1 $117.99
+44%
Country Average 6.5 $244.1
+198%

Forward EV/GP
Today’s price vs future gross profit

Not enough data available to calculate forward EV/GP

Peer Comparison

All Multiples
EV/GP
P/E
All Countries
Close

Market Distribution

Lower than 88% of companies in the United States of America
Percentile
12th
Based on 9 428 companies
12th percentile
2.2
Low
0 — 4.2
Typical Range
4.2 — 10.6
High
10.6 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 4.2
Median 6.5
70th Percentile 10.6
Max 1 764 211.7

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 18%
Intrinsic Value
Price $81.85
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