Sprouts Farmers MarketFRA:1FA -2.67%88 PEG Ratio is 1.12 as of Jul. 09, 2026, which is 19% above its 10-year median of 0.94. GuruFocus rates FRA:1FA with a GF Score™ of 88/100 and a GF Value™ of €87.21 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 156 Retail - Defensive companies, Sprouts Farmers Market ranks better than 66.03% on this metric.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Sprouts Farmers Market's PEG Ratio or its related term are showing as below:
FRA:1FA'
s PEG Ratio Range Over the Past 10 Years
Min: 0.36 Med: 0.94 Max: 3.7
Current: 1.05
During the past 13 years, Sprouts Farmers Market's highest PEG Ratio was 3.70. The lowest was 0.36. And the median was 0.94.
FRA:1FA's PEG Ratio is ranked better than 66.03% of 156
companies
in the Retail - Defensive industry
Industry Median: 1.64
vs FRA:1FA: 1.05
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Sprouts Farmers Market (FRA:1FA) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
* 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.
For the Grocery Stores subindustry, Sprouts Farmers Market's PEG Ratio, along with its competitors' market caps and PEG Ratio 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 PEG Ratio vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Sprouts Farmers Market's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Sprouts Farmers Market's PEG Ratio falls into.
* 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Sprouts Farmers Market (FRA:1FA) has a PEG Ratio of 1.12 as of Jul. 09, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Sprouts Farmers Market and its competitors. This is 19% above median its historical median of 0.94. Over the past decade, Sprouts Farmers Market's PEG Ratio has ranged from 0.36 to 3.70. According to the industry distribution chart, Sprouts Farmers Market ranks #53 out of 156 companies in the Retail - Defensive industry, placing it in the top 34%.
Is Sprouts Farmers Market's PEG Ratio too high?
Sprouts Farmers Market's current PEG Ratio of 1.12 is 19% above median its 10-year median of 0.94. Over the past 10 years, this metric has ranged from a low of 0.36 to a high of 3.70. The Retail - Defensive industry median PEG Ratio is 1.64. Sprouts Farmers Market's value of 1.12 is 31.7% below this industry median. Based on the distribution chart, Sprouts Farmers Market ranks #53 out of 156 companies in the Retail - Defensive industry, which is above the industry midpoint. Overall, Sprouts Farmers Market has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sprouts Farmers Market's PEG Ratio compare to ACI and WMK?
According to the Retail - Defensive industry distribution chart, Sprouts Farmers Market ranks #53 out of 156 companies for PEG Ratio. This puts Sprouts Farmers Market in the upper half of its industry. The industry median PEG Ratio is 1.64. Sprouts Farmers Market's value of 1.12 is 31.7% below this benchmark. Historically, Sprouts Farmers Market's own PEG Ratio has ranged from 0.36 to 3.70 over the past decade. While the company's 10-year median is 0.94 vs. the industry median of 1.64, Sprouts Farmers Market has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good PEG Ratio for a Retail - Defensive company?
The median PEG Ratio among Retail - Defensive companies is 1.64, based on 156 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sprouts Farmers Market's current PEG Ratio of 1.12 is 31.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Sprouts Farmers Market and its competitors. For the Retail - Defensive industry, the median PEG Ratio is 1.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sprouts Farmers Market's current PEG Ratio is 1.12, which is 19% above median its own 10-year median of 0.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sprouts Farmers Market stock overvalued right now?
Based on GuruFocus' analysis, Sprouts Farmers Market (FRA:1FA) is currently considered Modestly Undervalued. The stock's GF Value™ is €87.21, compared to a current price of €73.36 — trading 15.9% below its estimated fair value. The current PEG Ratio is 1.12, which is 19% above median its 10-year median of 0.94 and 31.7% below the Retail - Defensive industry median of 1.64. Sprouts Farmers Market's overall GF Score™ is 88/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For Sprouts Farmers Market (FRA:1FA), the current PEG Ratio is 1.12 as of Jul. 09, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sprouts Farmers Market (FRA:1FA) Overvalued in 2026?
Based on GuruFocus' analysis, Sprouts Farmers Market stock appears to be undervalued.
The current stock price of €73.36 is trading 15.9% below its estimated GF Value™ of €87.21.
GuruFocus considers Sprouts Farmers Market to be Modestly Undervalued.
Key valuation signals for FRA:1FA:
PEG Ratio: 1.12 (19% above median its 10-year median of 0.94)
GF Value™: €87.21 vs. price of €73.36 (15.9% below fair value)
Industry Position: 31.7% below the Retail - Defensive median (#53 of 156)
No single metric tells the full story. See the FRA:1FA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sprouts Farmers Market Inc offers a specialty grocery experience featuring an open layout with fresh produce at the heart of the store. Sprouts inspire wellness naturally with a carefully curated assortment products paired with purpose-driven people. The company continues to bring products made with lifestyle-friendly ingredients such as organic, plant-based, and gluten-free. It approximately has 407 stores in nearly 23 states. The Company has one operating segment that is healthy grocery stores.
88GF Score
Get the complete analysis for FRA:1FA
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