What is Sprouts Farmers Market, Inc. (SFM)'s PEG ratio?

Sprouts Farmers Market, Inc. (SFM) has a PEG ratio of 0.93 (Potentially Undervalued), based on a PE ratio of 15.8 and expected EPS growth of 17.0% (5-Year EPS CAGR).

Is SFM undervalued based on its PEG ratio?

A PEG below 1.0 is conventionally read as potentially undervalued, 1.0–2.0 as fairly valued, and above 2.0 as potentially overvalued relative to growth. At 0.93, Sprouts Farmers Market, Inc. (SFM) screens as "Potentially Undervalued". PEG is one signal, not investment advice — see the full DCF fair value at evidinvest.com/valuation/SFM.

Sprouts Farmers Market, Inc. (SFM) PEG Ratio

Potentially Undervalued

PE ratio relative to earnings growth — is the valuation justified?

0.93

PEG Ratio

0.93

Growth Rate Source

Good Data Quality5-Year EPS CAGR

Current Price

$82.62

TTM EPS

$5.22

P/E Ratio

15.83

Growth Rate

17.0%

5-Year EPS CAGR

Sector

Consumer Defensive

Grocery Stores

Calculated

8/18/2026

10:01:42 AM

Peer Comparison

Sample Size

3 peers

Industry Median PEG

1.25

25th Percentile

1.00

75th Percentile

22.63

SFM PEG (0.93) vs Industry Median (1.25): 26% discount

Symbol	Company	PEG	P/E	Growth	vs SFM
FIVE	Five Below, Inc.	1.00	24.0	24.1%	+7%
NGVC	Natural Grocers by Vitamin Cottage, Inc.	1.25	22.3	17.8%	+35%
OLLI	Ollie's Bargain Outlet Holdings, Inc.	22.63	20.2	0.9%	+2337%

How to Interpret PEG Ratio

PEG < 1.0 — Potentially Undervalued. The stock may be priced below its earnings growth rate, suggesting a potential buying opportunity.

PEG 1.0–2.0 — Fairly Valued. The stock price is roughly in line with its earnings growth. A PEG of 1.0 is often considered "fair value."

PEG > 2.0 — Potentially Overvalued. The stock may be priced above what its earnings growth justifies.

Limitations:PEG ratios are less reliable for financial firms (earnings driven by interest margins), companies with negative/zero earnings growth, and hypergrowth companies (>100% growth) where the ratio may appear misleadingly low. Always use PEG alongside other valuation metrics.

Sprouts Farmers Market, Inc. (SFM) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on SFM

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Sprouts Farmers Market, Inc. (SFM) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on SFM

Compare with peers

Explore