The Kroger Co. (KR) Valuation — DCF, Graham & Comparables

The Kroger Co. (KR) — Price $66.76 (closing price, October 30, 2026) — Consumer Defensive — Grocery Stores — NYSE

Latest reported results:

Valuation dashboard for The Kroger Co. (KR) with P/E 36.28, P/B 6.93, EV/EBITDA 11.4 and dividend yield 2.16%. DCF, Graham Number, EPS growth, peer multiples and dividend discount models plus sector comparison against other Consumer Defensive companies.

The Kroger Co. functions as a significant retail entity throughout the United States, encompassing a varied collection of store formats. Its operations include integrated food and drug stores, which stock a broad range of products from natural and organic sections to pharmacies, general merchandise, pet centers, fresh seafood, and organic produce.

What would it be worth at its usual multiples?

Versus its usual multiples: expensive · Current P/E 36.3× · Multiples range: $28.57 · $40.37.

At the decade median (15.5×) $29 (-57 %); at its sector median (21.9×) $40 (-40 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.

Analysis Summary

The Kroger Co. reported revenue of $147.64B in the most recent fiscal year, growing at a 5-year CAGR of 2.2%. Net income reached $1.02B, with a -17.0% 5-year CAGR.

Trailing-twelve-month margins: gross margin 23.1%, operating margin 1.4%, net margin 0.7%.

At $66.76 (closing price, October 30, 2026), KR trades at a P/E of 36.28 and an ROE of 17.17%. Market capitalisation stands at $39.4B, placing it among large-cap names.

Balance sheet quality for KR: debt-to-equity ratio of 4.14, current ratio of 0.70 over the last 12 months. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.

Long-term track record: over the past decade, KR has compounded revenue at 3.0% annually and net income at -6.7%. This decade-long view smooths out cyclical fluctuations and reveals the underlying business momentum more reliably than single-year snapshots.

Valuation Ratios

P/E Ratio36.28
Price / Book6.93
EV / EBITDA11.4
Dividend Yield2.16%

Peer Comparison

SymbolCompanyMarket CapP/EP/BROE
KRThe Kroger Co.$39.4B36.286.9317.2%
SFMSprouts Farmers Market, Inc.$4.6B9.543.0333.8%
ACIAlbertsons Companies, Inc.$6.3B4.42-2.8%
L.TOLoblaw Companies LimitedCAD 79.8B28.907.3025.2%
0JS2.LThe Kroger Co.$37.9B36.096.9317.2%
TSCO.LTesco PLCGBP 33.7B17.922.9116.5%
WN.TOGeorge Weston LimitedCAD 40.3B41.268.9420.4%
WN-PA.TOGeorge Weston LimitedCAD 15.3B41.268.9420.4%

Price

Price$66.76 (closing price, October 30, 2026)
Market Cap$39.4B
ExchangeNYSE
CountryUS

Profitability

Return on Equity17.17%
Return on Invested Capital5.04%
Return on Assets2.19%
Gross Margin23.11%
Operating Margin1.39%
Net Margin0.73%

Related companies: SFM · ACI · L.TO · 0JS2.L · TSCO.L · WN.TO · WN-PA.TO · MRU.TO

Explore sector: Consumer Defensive · Grocery Stores

More sections of KR: Overview · Financials · Statistics · Estimates · Technical · Ownership · News · Events

Discover more: Weekly Radar: the S&P 500 through the Buffett and Lynch methods · Companies that pass the Buffett method · Companies that pass the Lynch method · Stocks that pass Graham's defensive investor test today · Investment Academy — learn to analyze stocks