The Kroger CoLTS:0JS2 -0.04%69 PEG Ratio is 7.01 as of Jul. 02, 2026, which is 346% above its 10-year median of 1.57. GuruFocus rates LTS:0JS2 with a GF Score™ of 69/100 and a GF Value™ of $65.97 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 156 Retail - Defensive companies, The Kroger Co ranks worse than 86.54% 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 The Kroger Co's PEG Ratio or its related term are showing as below:
LTS:0JS2'
s PEG Ratio Range Over the Past 10 Years
Min: 0.7 Med: 1.57 Max: 7.1
Current: 7.1
During the past 13 years, The Kroger Co's highest PEG Ratio was 7.10. The lowest was 0.70. And the median was 1.57.
LTS:0JS2's PEG Ratio is ranked worse than 86.54% of 156
companies
in the Retail - Defensive industry
Industry Median: 1.61
vs LTS:0JS2: 7.10
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
The Kroger Co (LTS:0JS2) 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.
The Kroger Co PEG Ratio Related Terms
The Kroger Co PEG Ratio Historical Data
* Premium members only.
The historical data trend for The Kroger Co's PEG Ratio 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.
For the Grocery Stores subindustry, The Kroger Co'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.
The Kroger Co PEG Ratio vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, The Kroger Co's PEG Ratio distribution charts can be found below:
* The bar in red indicates where The Kroger Co'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.
The Kroger Co (LTS:0JS2) has a PEG Ratio of 7.01 as of Jul. 02, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on The Kroger Co and its competitors. This is 346% above median its historical median of 1.57. Over the past decade, The Kroger Co's PEG Ratio has ranged from 0.70 to 7.10. According to the industry distribution chart, The Kroger Co ranks #135 out of 156 companies in the Retail - Defensive industry, placing it in the top 86.5%.
Is The Kroger Co's PEG Ratio too high?
The Kroger Co's current PEG Ratio of 7.01 is 346% above median its 10-year median of 1.57. Over the past 10 years, this metric has ranged from a low of 0.70 to a high of 7.10. The Retail - Defensive industry median PEG Ratio is 1.61. The Kroger Co's value of 7.01 is 335.4% above this industry median. Based on the distribution chart, The Kroger Co ranks #135 out of 156 companies in the Retail - Defensive industry, which is in the bottom quartile relative to peers. Overall, The Kroger Co has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Kroger Co's PEG Ratio compare to SFM and ACI?
According to the Retail - Defensive industry distribution chart, The Kroger Co ranks #135 out of 156 companies for PEG Ratio. This places The Kroger Co in the lower half of its industry. The industry median PEG Ratio is 1.61. The Kroger Co's value of 7.01 is 335.4% above this benchmark. Historically, The Kroger Co's own PEG Ratio has ranged from 0.70 to 7.10 over the past decade. While the company's 10-year median is 1.57 vs. the industry median of 1.61, The Kroger Co has consistently been above 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 1.61, 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. The Kroger Co's current PEG Ratio of 7.01 is 335.4% above 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 The Kroger Co and its competitors. For the Retail - Defensive industry, the median PEG Ratio is 1.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Kroger Co's current PEG Ratio is 7.01, which is 346% above median its own 10-year median of 1.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Kroger Co stock overvalued right now?
Based on GuruFocus' analysis, The Kroger Co (LTS:0JS2) is currently considered Modestly Undervalued. The stock's GF Value™ is $65.97, compared to a current price of $55.52 — trading 15.8% below its estimated fair value. The current PEG Ratio is 7.01, which is 346% above median its 10-year median of 1.57 and 335.4% above the Retail - Defensive industry median of 1.61. The Kroger Co's overall GF Score™ is 69/100 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 The Kroger Co (LTS:0JS2), the current PEG Ratio is 7.01 as of Jul. 02, 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 The Kroger Co (LTS:0JS2) Overvalued in 2026?
Based on GuruFocus' analysis, The Kroger Co stock appears to be undervalued.
The current stock price of $55.52 is trading 15.8% below its estimated GF Value™ of $65.97.
GuruFocus considers The Kroger Co to be Modestly Undervalued.
Key valuation signals for LTS:0JS2:
PEG Ratio: 7.01 (346% above median its 10-year median of 1.57)
GF Value™: $65.97 vs. price of $55.52 (15.8% below fair value)
Industry Position: 335.4% above the Retail - Defensive median (#135 of 156)
No single metric tells the full story. See the LTS:0JS2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1883, Kroger is the largest pure-play supermarket operator in the United States, operating roughly 2,700 stores across more than 30 banners. Kroger's business is primarily grocery-led (roughly 78% of sales), spanning fresh food and private-label offerings, complemented by fuel centers (9%) and pharmacies (12%). The firm also generates income from advertising, data analytics, and manufacturing.
69GF Score
Get the complete analysis for LTS:0JS2
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