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Sprouts Farmers Market (Sprouts Farmers Market) Intrinsic Value: Projected FCF : $42.03 (As of Apr. 26, 2024)


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What is Sprouts Farmers Market Intrinsic Value: Projected FCF?

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-04-26), Sprouts Farmers Market's Intrinsic Value: Projected FCF is $42.03. The stock price of Sprouts Farmers Market is $66.98. Therefore, Sprouts Farmers Market's Price-to-Intrinsic-Value-Projected-FCF of today is 1.6.

The historical rank and industry rank for Sprouts Farmers Market's Intrinsic Value: Projected FCF or its related term are showing as below:

SFM' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.8   Med: 1.14   Max: 2.7
Current: 1.59

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Sprouts Farmers Market was 2.70. The lowest was 0.80. And the median was 1.14.

SFM's Price-to-Projected-FCF is ranked worse than
81.5% of 227 companies
in the Retail - Defensive industry
Industry Median: 0.89 vs SFM: 1.59

Sprouts Farmers Market Intrinsic Value: Projected FCF Historical Data

The historical data trend for Sprouts Farmers Market's Intrinsic Value: Projected FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Sprouts Farmers Market Intrinsic Value: Projected FCF Chart

Sprouts Farmers Market Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.92 25.09 30.80 36.80 42.03

Sprouts Farmers Market Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Intrinsic Value: Projected FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 36.80 40.10 40.95 42.58 42.03

Competitive Comparison of Sprouts Farmers Market's Intrinsic Value: Projected FCF

For the Grocery Stores subindustry, Sprouts Farmers Market's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Sprouts Farmers Market's Price-to-Projected-FCF Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Sprouts Farmers Market's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Sprouts Farmers Market's Price-to-Projected-FCF falls into.



Sprouts Farmers Market Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get Sprouts Farmers Market's Free Cash Flow(6 year avg) = $227.40.

Sprouts Farmers Market's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Dec23)*0.8)/Shares Outstanding (Diluted Average)
=(14.862653310476*227.40368+1148.547*0.8)/102.286
=42.03

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Sprouts Farmers Market  (NAS:SFM) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

Sprouts Farmers Market's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=66.98/42.025884846083
=1.59

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Sprouts Farmers Market Intrinsic Value: Projected FCF Related Terms

Thank you for viewing the detailed overview of Sprouts Farmers Market's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Sprouts Farmers Market (Sprouts Farmers Market) Business Description

Traded in Other Exchanges
Address
5455 East High Street, Suite 111, Phoenix, AZ, USA, 85054
Sprouts Farmers Market is an American specialty grocer offering an assortment highlighting fresh and naturally derived products. Its offerings are especially focused on produce, which constituted around 20% of sales in fiscal 2022. Founded in 2002, the chain is most heavily concentrated in California, which accounted for over one third of its 386 stores as of the end of fiscal 2022. All of the company's operations are in the United States, with its stores largely located in the southern half of the country. Private-label products accounted for nearly 20% of sales in fiscal 2022.
Executives
Brandon F. Lombardi officer: Chief Legal Officer 11811 N. TATUM BOULEVARD SUITE 2400, PHOENIX AZ 85028
David Mcglinchey officer: Chief Merchandising Officer 5455 E. HIGH STREET, SUITE 111, PHOENIX AZ 85054
Douglas Gregory Rauch director 54 WILDE ROAD, WABAN MA 02468
Joseph L Hurley officer: Chief Supply Chain Officer 5455 EAST HIGH STREET, SUITE 111, PHOENIX AZ 85054
Jack Sinclair director, officer: Chief Executive Officer 800 WEST 1ST STREET, APT. 2308, LOS ANGELES CA 90012
Lawrence Molloy director 19601 N 27TH AVENUE, PHOENIX AZ 85027
Stacy W. Hilgendorf officer: VP, Controller 14624 N. SCOTTSDALE ROAD, SUITE 300, SCOTTSDALE AZ 85254
James H Bahrenburg officer: Chief Technology Officer 5455 EAST HIGH STREET, SUITE 111, PHOENIX AZ 85054
Kim Coffin officer: SVP, Chief Forager 5455 EAST HIGH STREET, SUITE 111, PHOENIX AZ 85054
John Scott Neal officer: Chief Fresh Merchandising Off. 5455 EAST HIGH STREET, SUITE 111, PHOENIX AZ 85054
Timmi Zalatoris officer: Chief Human Resources Officer 5455 EAST HIGH STREET, SUITE 111, PHOENIX AZ 85054
Nicholas Konat officer: President & COO 10850 VIA FRONTERA, SAN DIEGO CA 92127
Dan J Sanders officer: Chief Operations Officer 5455 E. HIGH STREET, SUITE 111, PHOENIX AZ 85054
Alisa Gmelich officer: SVP, Chief Marketing Officer 5455 EAST HIGH STREET, SUITE 111, PHOENIX AZ 85054
Hari K. Avula director 5455 EAST HIGHT STREET, SUITE 111, PHOENIX AZ 85054