KR · Intrinsic value
Is The Kroger Co. (KR) overvalued or undervalued?
As of Oct 19, 2026, TickerWorth's valuation lenses put The Kroger Co. (KR) at $31.58 – $274.88, too broad a range to say where the delayed market price of $62.55 sits in it, so we do not call it over- or undervalued. It is a model estimate, and every input behind it is sourced below.
Model by Miraaj Patel · generated from SEC filings and market data · Updated Oct 19, 2026 · How these pages are made
What is KR worth?
- Fair-value range
- $31.58 – $274.88
- Market price
- $62.55
- Gap to fair value
- —
- Verdict
- Too wide to call
Reverse DCF: Today's price implies revenue growth of 10.1% a year for 5 years; our model assumes 3.2% a year on average over the same horizon.
What is KR's TickerWorth Score?
Middle of the pack — real strengths and real weaknesses
Compared with Consumer Defensive companies in US
Its strongest point: trades below our estimate of what it's worth. Its weakest: profitability is weak.
- Value · 66 of 100
Cheaper than 66% of Consumer Defensive companies in US
- Price vs worth · 88 of 100
- Quality · 18 of 100
More profitable than 18% of Consumer Defensive companies in US
- Financial health · 21 of 100
Financially stronger than 21% of Consumer Defensive companies in US
- Growth · 64 of 100
Growing faster than 64% of Consumer Defensive companies in US
- Momentum · 37 of 100
Outperformed 37% of Consumer Defensive companies in US over the past year
Confidence: Low confidence · Scored
Get the Undervalued Company of the Week.
Why KR gets a range, not one number
At a recent price of $62.55, The Kroger Co. (KR) sits inside a range too wide to call either way: our valuation lenses put the business somewhere between $31.58 and $274.88 per share. They disagree too widely for us to state a single fair value. We publish the range rather than a midpoint because a number that precise would claim more than the methods can support. This is an educational model, not a price target or a recommendation.
Read the full reasoning
The valuation discounts The Kroger Co.'s projected free cash flows at a weighted-average cost of capital (WACC) of 6.6%, with a long-run terminal growth rate of 2.5%. About 85% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is unusually high — most of the answer comes from a single assumption about the far future, so treat this figure as low-confidence and lean on the multiples alongside it.
Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly 10.1% annual revenue growth for KR. Our base case instead compounds to about 3.2% a year over the same forecast, so the market is pricing in materially faster growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, KR's modeled DCF value ranges from about $16.34 to $124.76 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what The Kroger Co. would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of KR's intrinsic value. Figures update as new filings and prices come in.
Every input behind KR's DCF
| Input | Value |
|---|---|
| Base-year revenueKroger Co. FY2025 10-K (accession 0001104659-26-037723): us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, FY2025 full year. | $147,642,000,000 |
| Base EBIT marginKroger Co. FY2025 10-K (accession 0001104659-26-037723): us-gaap:OperatingIncomeLoss 1,890,000,000 / revenue 147,642,000,000 = 1.28%, FY2025. | 1.3% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 2% → 3% → 3% → 4% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 5.2% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 0.41 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesKroger Co. FY2025 10-K (accession 0001104659-26-037723): WeightedAverageNumberOfDilutedSharesOutstanding = 655,000,000 shares, FY2025. | 655M |
| Market priceLast known price · as of 2026-10-19 21:03 UTC | $62.55 |
Change KR's assumptions
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What does The Kroger Co. do?
What does it do?
The Kroger Co. operates as a food and drug retailer in the United States. It operates in the Grocery Stores industry (Consumer Defensive sector), headquartered in United States. The company employs roughly 400,000 people.
How does it make money?
The business turns $147.6B in annual revenue into profit. Out of every $100 of sales, about $3 is left as operating profit (operating margin of 3.0%), after a 24% gross margin on the products/services it sells. After all costs, taxes and interest, 0.7% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks stretched: carries heavy debt (4.1× equity), may struggle to cover its short-term bills (0.7× current ratio), and is currently profitable.
Who at KR filed insider trades?
| Date | Insider | Relationship | What happened | Value | Filing |
|---|---|---|---|---|---|
| DEMARTINO EMILEE F. | Executive Vice President | Grant / award | — | Form 4 for DEMARTINO EMILEE F. (opens sec.gov in a new tab) | |
| Shaffer Megan N. | Group Vice President | Shares withheld (tax) | $15,801.06 | Form 4 for Shaffer Megan N. (opens sec.gov in a new tab) | |
| Vincent George H. | Executive Vice President | Shares withheld (tax) | $98,506.98 | Form 4 for Vincent George H. (opens sec.gov in a new tab) | |
| Adcock Mary Ellen | Executive Vice President | Option exercise | $1,326,322.40 | Form 4 for Adcock Mary Ellen (opens sec.gov in a new tab) | |
| Adcock Mary Ellen | Executive Vice President | Option exercise | $415,618.72 | Form 4 for Adcock Mary Ellen (opens sec.gov in a new tab) | |
| Adcock Mary Ellen | Executive Vice President | Open-market sale | $2,305,500.60 | Form 4 for Adcock Mary Ellen (opens sec.gov in a new tab) |
A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4). Older filings and the 90-day buying-and-selling read are part of Pro. See plans
Common questions
What is KR's intrinsic value?
TickerWorth's valuation lenses put The Kroger Co. (KR) between $31.58 and $274.88 per share, versus a market price of $62.55. They disagree too widely for us to state a single fair value, so we publish the range.
Is KR overvalued or undervalued?
At $62.55 the price sits inside a range too wide to call either way. We don't call KR overvalued or undervalued from a range this wide. This is an educational estimate, not advice.
What discount rate is used for KR?
A WACC of 6.6% and a terminal growth rate of 2.5%.
Is The Kroger stock undervalued?
TickerWorth's fair-value range for The Kroger Co. (KR) is $31.58 – $274.88 against a market price of $62.55. Too wide to call. We publish a range here, not one number, so we do not call it over- or undervalued. This is a model estimate, not investment advice.
The Kroger (KR) DCF valuation and fair value
Our fair-value range for The Kroger Co. (KR) is $31.58 – $274.88, built on a 6.6% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into The Kroger stock?
Today's price implies revenue growth of 10.1% a year for 5 years; our model assumes 3.2% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $62.55. A model estimate, not investment advice.
The Kroger (KR) insider trading
The most recent insider filing (SEC Form 4) for The Kroger Co. (KR): DEMARTINO EMILEE F., Executive Vice President, grant / award on 2026-09-25. The latest filings are listed on this page. A disclosure, not a signal to trade.
Other ways into the coverage
Not investment advice. TickerWorth Score is a model output.
Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.