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The Kroger Co. — Intrinsic Value & Fair Price

KR
NYSEConsumer DefensiveGrocery StoresCIK 0000056873thekrogerco.comAbout KR
Valuation grade ?B
Quant grade ?B
Last close · Oct 30, 202666.76+0.83 (+1.26%)
Model value · DCF · Perpetuity growth · 5y
37.94
Kroger closed at $66.76 — overvalued by 76% vs model.
21.94the model's range68.55

DCF · Perpetuity growth · 5y leads for a mature, steady company — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
29.61 – 129.84
Wall St. target
70.00 5% below
Above model, 1y
26 of 30 days

How it is valued

Valued asMature & stable
Revenue declining (~-1% recent)Thin margins (0.7% net margin)Pays dividendsHighly cyclical earningsHigh leverage (D/E 4.2x)Strong FCF yield (8.5%)
What growth the price implies: the reverse DCF

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; how each model works is in the manual.