Starbucks Stock Alpha and Beta Analysis

SBUX
 Stock
  

USD 102.20  2.85  2.71%   

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Starbucks. It also helps investors analyze the systematic and unsystematic risks associated with investing in Starbucks over a specified time horizon. Remember, high Starbucks' alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation.
Additionally, take a look at Starbucks Backtesting, Starbucks Valuation, Starbucks Correlation, Starbucks Hype Analysis, Starbucks Volatility, Starbucks History and analyze Starbucks Performance.
  
Please note that although Starbucks alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., NYSE Composite index.) So in this particular case, Starbucks did 0.26  better than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of Starbucks stock's relative risk over its benchmark. Starbucks has a beta of 1.04  . Let's try to break down what Starbucks's beta means in this case. Starbucks returns are very sensitive to returns on the market. As the market goes up or down, Starbucks is expected to follow.
Starbucks Enterprise Value over EBIT is fairly stable at the moment as compared to the past year. Starbucks reported Enterprise Value over EBIT of 19.55 in 2021. Enterprise Value over EBITDA is likely to rise to 15.69 in 2022, whereas Book Value per Share is likely to drop 2.55 in 2022.
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.

Enterprise Value

30.97 Billion

Starbucks Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Starbucks market risk premium is the additional return an investor will receive from holding Starbucks long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Starbucks. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Starbucks' performance over market.
α0.26   β1.04
90 days against NYA

Starbucks expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Starbucks' Buy-and-hold return. Our buy-and-hold chart shows how Starbucks performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

Starbucks Market Price Analysis

Market price analysis indicators help investors to evaluate how Starbucks stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Starbucks shares will generate the highest return on investment. By understating and applying Starbucks stock market price indicators, traders can identify Starbucks position entry and exit signals to maximize returns.

Starbucks Return and Market Media

The median price of Starbucks for the period between Sun, Sep 4, 2022 and Sat, Dec 3, 2022 is 88.18 with a coefficient of variation of 6.43. The daily time series for the period is distributed with a sample standard deviation of 5.78, arithmetic mean of 89.96, and mean deviation of 4.75. The Stock received substential amount of media coverage during this period.
 Price Growth (%)  
       Timeline  
1
Acquisition by Campion Andrew of 3546 shares of Starbucks Co...09/14/2022
2
Exercise or conversion by Jenkins Zabrina of 4020 shares of ...09/16/2022
3
Starbucks Corporation insiders have a reason to boast after ...09/21/2022
4
EPS Estimate09/30/2022
5
Acquisition by Narasimhan Laxman of 43912 shares of Starbuck...10/04/2022
6
Starbucks Corp. stock outperforms market despite losses on t...10/06/2022
7
Starbucks Stock Why Were Betting On A Pivot - Seeking Alpha10/21/2022
8
EPS Reported11/03/2022
9
Starbucks The Rally Can Continue - Yahoo Finance11/14/2022
10
EPS Estimate11/29/2022

About Starbucks Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Starbucks or other stocks. Alpha measures the amount that position in Starbucks has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
 2010 2017 2022 (projected)
Calculated Tax Rate36.4923.7324.61
Long Term Debt to Equity0.727.777.55

Starbucks Upcoming Company Events

As portrayed in its financial statements, the presentation of Starbucks' financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Starbucks' leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of Starbucks' public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of Starbucks. Please utilize our Beneish M Score to check the likelihood of Starbucks' management manipulating its earnings.
Upcoming Quarterly Report25th of January 2022
Next Financial Report26th of April 2022
Next Fiscal Quarter End31st of December 2021
Next Fiscal Year End27th of October 2022
Last Quarter Report30th of September 2021
Last Financial Announcement31st of December 2020

Build Portfolio with Starbucks

Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.

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Align your risk with return expectations

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By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
Additionally, take a look at Starbucks Backtesting, Starbucks Valuation, Starbucks Correlation, Starbucks Hype Analysis, Starbucks Volatility, Starbucks History and analyze Starbucks Performance. You can also try Commodity Channel Index module to use Commodity Channel Index to analyze current equity momentum.

Complementary Tools for analysis

When running Starbucks price analysis, check to measure Starbucks' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Starbucks is operating at the current time. Most of Starbucks' value examination focuses on studying past and present price action to predict the probability of Starbucks' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Starbucks' price. Additionally, you may evaluate how the addition of Starbucks to your portfolios can decrease your overall portfolio volatility.
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Starbucks technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Starbucks technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Starbucks trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...