ACI
Albertsons Companies Inc
Price:  
21.93 
USD
Volume:  
2,715,818
United States | Food & Staples Retailing

Albertsons Fair Value

89.8 %
Upside

What is the fair value of Albertsons?

As of 2025-07-06, the Fair Value of Albertsons Companies Inc (ACI) is 41.62 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 21.93 USD, the upside of Albertsons Companies Inc is 89.8%.

Is Albertsons a good investment?

With the market price of 21.93 USD and our fair value calculation, Albertsons Companies Inc (ACI) is a good investment. Investing in Albertsons stocks now will result in a potential gain of 89.8%.

21.93 USD
Stock Price
41.62 USD
Fair Price
FAIR VALUE CALCULATION

Albertsons Fair Value

Peter Lynch's formula is:

Albertsons Fair Value
= Earnings Growth Rate x TTM EPS
Albertsons Fair Value
= 25 x 1.66
Albertsons Fair Value
= 41.62

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
02-202102-202202-202302-202402-20255Y Avg
Net income8501,6201,5141,296958.61,248
YoY growth82.4%90.6%-6.5%-14.4%-26%25.2%

Albertsons Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
Loblaw Companies Ltd67,0157.4128.54-42.7%
Alimentation Couche-Tard Inc53,2042.416.47-66.8%
George Weston Ltd34,9349.4233.79-13.7%
Caseys General Stores Inc19,20014.7235.07-54.6%
Metro Inc23,1164.526.69-74.7%
Sprouts Farmers Market Inc15,8824.6114.07-29.7%
Empire Company Ltd12,980315.05-73%
Weis Markets Inc2,039456.01-26.1%
Ingles Markets Inc1,2593.362.19-6.2%
Village Super Market Inc5773.875.5393.2%

Albertsons Fair Value - Key Data

Market Cap (mil)12,626
P/E13.2x
Forward P/E13.6x
EPS1.66
Avg earnings growth rate25.2%
TTM earnings959

Albertsons Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.