Starbucks Stock Valuation

SBUX
 Stock
  

USD 99.56  0.04  0.0402%   

Do you wonder what the value of Starbucks Corp is? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Starbucks Corp, is its stock price multiplied by the total number of shares outstanding, calculating Starbucks Corp's enterprise value requires a different approach. It uses Starbucks Corp's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Free Cash Flow is likely to drop to about 769.6 M in 2022. Enterprise Value is likely to drop to about 31 B in 2022.
Starbucks Corp has a current Real Value of $112.65 per share. The regular price of the company is $99.56. At this time, the company appears to be undervalued. Our model measures the value of Starbucks Corp from inspecting the company fundamentals such as Operating Margin of 18.52 %, shares outstanding of 1.15 B, and Return On Equity of 0.0133 % as well as reviewing its technical indicators and Probability Of Bankruptcy. In general, we recommend acquiring undervalued stocks and dropping overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other.
  
Starbucks Corp Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Starbucks Corp's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Starbucks Most Recent Valuation Data

EPS Estimate Next Quarter
0.75
Price Sales
3.54
Forward Annual Dividend Yield
0.0213
EBITDA
B
Dividend Share
2.0
Ex Dividend Date
2022-11-09
Undervalued
Today 99.56
Please note that Starbucks Corp's price fluctuation is very steady at this time. Calculation of the real value of Starbucks Corp is based on 3 months time horizon. Increasing Starbucks Corp's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Starbucks Corp is useful when determining the fair value of the Starbucks stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Starbucks Corp. Since Starbucks Corp is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Starbucks Stock. However, Starbucks Corp's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
112.65
Real Value
114.99
Upside
Estimating the potential upside or downside of Starbucks Corp helps investors to forecast how Starbucks stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Starbucks Corp more accurately as focusing exclusively on Starbucks Corp's fundamentals will not take into account other important factors:
Earnings
Estimates (14)
LowProjected EPSHigh
3.403.443.56
Details
Hype
Prediction
LowEstimated ValueHigh
97.4999.83102.17
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
1.381.431.48
Details
25 Analysts
Consensus
LowTarget PriceHigh
105.00123.27142.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Starbucks Corp's intrinsic value based on its ongoing forecasts of Starbucks Corp's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Starbucks Corp's closest peers. When choosing an evaluation method for Starbucks Corp, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Starbucks Corp Investments

1.38 Billion

Starbucks Valuation Drivers Correlation

Many accounts on the financial statements of Starbucks Corp are highly interrelated and sometimes correlated. Consequently, when conducting Starbucks's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Starbucks
Click cells to compare fundamentals

Starbucks Valuation Trend

Knowing Starbucks Corp's actual value is paramount for traders to make sound investment determinations. Starbucks Corp's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Starbucks Corp's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Starbucks Corp's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Starbucks Market Cap

Starbucks Corp is currently regarded as top stock in market capitalization category among related companies. Market capitalization of Restaurants industry is at this time estimated at about 228.54 Billion. Starbucks Corp totals roughly 114.27 Billion in market capitalization claiming about 50% of equities listed under Restaurants industry.
Capitalization  Revenue  Total debt  Valuation  Workforce

Starbucks Corp Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Starbucks Corp's current stock value. Our valuation model uses many indicators to compare Starbucks Corp value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Starbucks Corp competition to find correlations between indicators driving Starbucks Corp's intrinsic value. More Info.
Starbucks Corp is currently regarded as top stock in beta category among related companies. It is currently regarded as top stock in five year return category among related companies reporting about  2.22  of Five Year Return per Beta. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Starbucks Corp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Starbucks Corp's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Starbucks Corp's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Starbucks Corp's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Starbucks Corp and how it compares across the competition.

About Starbucks Corp Valuation

The stock valuation mechanism determines the current worth of Starbucks Corp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Starbucks Corp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Starbucks Corp based exclusively on its fundamental and basic technical indicators. By analyzing Starbucks Corp's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Starbucks Corp's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Starbucks Corp. We calculate exposure to Starbucks Corp's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Starbucks Corp's related companies.
Fiscal Year End
September
Industry
Restaurants
Concentration
Restaurants
Full Time Employees
402 K
Service Category
Hotels, Restaurants & Leisure
Employer Id Number
91-1325671
Last ReportedProjected for 2022
Gross Profit2.8 B2.5 B
Profit Margin 18.28  19.72 
Starbucks Corp's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Starbucks Corp's value is low or high relative to the company's performance and growth projections. Determining the market value of Starbucks Corp can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Starbucks Corp represents a small ownership stake in the entity. As a stockholder of Starbucks, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Starbucks Corp Dividends Analysis For Valuation

Dividends per Basic Common Share is likely to rise to 0.35 in 2022, whereas Payment of Dividends and Other Cash Distributions is likely to drop (636.5 M) in 2022. . Starbucks Corp Earnings per Basic Share are fairly stable at the moment as compared to the past year. Starbucks Corp reported Earnings per Basic Share of 3.27 in 2021. Earnings per Diluted Share is likely to rise to 3.49 in 2022, whereas Accumulated Retained Earnings Deficit are likely to drop slightly above 3.7 B in 2022.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-590 M-636.5 M
Dividend Yield 0.0117  0.0114 
Dividends per Basic Common Share 0.31  0.35 
There are various types of dividends Starbucks Corp can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Starbucks shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Starbucks Corp directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Starbucks pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Starbucks Corp by the value of the dividends paid out.

Starbucks Corp Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Starbucks Corp does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.49
Earnings Quarterly Growth-50.20%
Revenue Growth3.30%
Payout Ratio69.26%
Enterprise Value To Ebitda22.59
Earnings Growth-48.60%
Enterprise Value To Revenue4.18

Starbucks Corp Current Valuation Indicators

Valuation refers to the process of determining the present value of Starbucks Corp and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Starbucks we look at many different elements of the entity such as Starbucks's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Starbucks Corp's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Starbucks Corp's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Starbucks Corp, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Starbucks Corp's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Starbucks Corp's worth.
Additionally, take a look at World Market Map. You can also try Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

Complementary Tools for analysis

When running Starbucks Corp price analysis, check to measure Starbucks Corp's 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 Corp is operating at the current time. Most of Starbucks Corp's value examination focuses on studying past and present price action to predict the probability of Starbucks Corp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Starbucks Corp's price. Additionally, you may evaluate how the addition of Starbucks Corp to your portfolios can decrease your overall portfolio volatility.
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Is Starbucks Corp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Starbucks Corp. If investors know Starbucks will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Starbucks Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
(0.49) 
Market Capitalization
114.3 B
Quarterly Revenue Growth YOY
0.033
Return On Assets
0.0936
The market value of Starbucks Corp is measured differently than its book value, which is the value of Starbucks that is recorded on the company's balance sheet. Investors also form their own opinion of Starbucks Corp's value that differs from its market value or its book value, called intrinsic value, which is Starbucks Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Starbucks Corp's market value can be influenced by many factors that don't directly affect Starbucks Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Starbucks Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine Starbucks Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Starbucks Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.