SBUX Valuation

Starbucks Corp

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82.220

-0.66(-0.796%)1D

SBUX Relative Valuation

SBUX's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, SBUX is overvalued; if below, it's undervalued.

Historical Valuation

Starbucks Corp (SBUX) is now in the Overvalued zone, suggesting that its current forward PE ratio of 34.80 is considered Overvalued compared with the five-year average of 29.14. The fair price of Starbucks Corp (SBUX) is between 58.63 to 76.94 according to relative valuation methord. Compared to the current price of 82.88 USD , Starbucks Corp is Overvalued By 7.72%.

Relative Value

Fair Zone

58.63-76.94

Current Price：82.88

7.72%

Overvalued

34.80

Trailing

Forward

20.03

EV/EBITDA

Starbucks Corp. (SBUX) has a current EV/EBITDA of 20.03. The 5-year average EV/EBITDA is 18.95. The thresholds are as follows: Strongly Undervalued below 13.78, Undervalued between 13.78 and 16.37, Fairly Valued between 21.54 and 16.37, Overvalued between 21.54 and 24.13, and Strongly Overvalued above 24.13. The current Forward EV/EBITDA of 20.03 falls within the Historic Trend Line -Fairly Valued range.

28.46

EV/EBIT

Starbucks Corp. (SBUX) has a current EV/EBIT of 28.46. The 5-year average EV/EBIT is 24.12. The thresholds are as follows: Strongly Undervalued below 16.88, Undervalued between 16.88 and 20.50, Fairly Valued between 27.74 and 20.50, Overvalued between 27.74 and 31.37, and Strongly Overvalued above 31.37. The current Forward EV/EBIT of 28.46 falls within the Overvalued range.

82.88

Starbucks Corp. (SBUX) has a current PS of 82.88. The 5-year average PS is 3.56. The thresholds are as follows: Strongly Undervalued below -7.51, Undervalued between -7.51 and -1.97, Fairly Valued between 9.10 and -1.97, Overvalued between 9.10 and 14.64, and Strongly Overvalued above 14.64. The current Forward PS of 82.88 falls within the Strongly Overvalued range.

23.79

P/OCF

Starbucks Corp. (SBUX) has a current P/OCF of 23.79. The 5-year average P/OCF is 19.11. The thresholds are as follows: Strongly Undervalued below 12.10, Undervalued between 12.10 and 15.60, Fairly Valued between 22.61 and 15.60, Overvalued between 22.61 and 26.12, and Strongly Overvalued above 26.12. The current Forward P/OCF of 23.79 falls within the Overvalued range.

39.22

P/FCF

Starbucks Corp. (SBUX) has a current P/FCF of 39.22. The 5-year average P/FCF is 31.48. The thresholds are as follows: Strongly Undervalued below 20.82, Undervalued between 20.82 and 26.15, Fairly Valued between 36.81 and 26.15, Overvalued between 36.81 and 42.14, and Strongly Overvalued above 42.14. The current Forward P/FCF of 39.22 falls within the Overvalued range.

Starbucks Corp (SBUX) has a current Price-to-Book (P/B) ratio of -12.22. Compared to its 3-year average P/B ratio of -13.28 , the current P/B ratio is approximately -7.93% higher. Relative to its 5-year average P/B ratio of -14.29, the current P/B ratio is about -14.49% higher. Starbucks Corp (SBUX) has a Forward Free Cash Flow (FCF) yield of approximately 0.03%. Compared to its 3-year average FCF yield of 2.98%, the current FCF yield is approximately -99.13% lower. Relative to its 5-year average FCF yield of 2.86% , the current FCF yield is about -99.09% lower.

-12.22

P/B

Median3y

-13.28

Median5y

-14.29

0.03

FCF Yield

Median3y

2.98

Median5y

2.86

Competitors Valuation Multiple

The average P/S ratio for SBUX's competitors is 92.54, providing a benchmark for relative valuation. Starbucks Corp Corp (SBUX) exhibits a P/S ratio of 82.88, which is -10.44% above the industry average. Given its robust revenue growth of 0.00%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Chipotle Mexican Grill Inc

Restaurant Brands International Inc

Darden Restaurants Inc

Yum China Holdings Inc

43.87

4.40%

15.98B

Performance Decomposition

Market capitalization of SBUX decreased by 18.67% over the past 1 year. The primary factor behind the change was an decrease in Revenue Growth from 9.57B to 9.57B.

The secondary factor is the Margin Expansion, contributed 0.00%to the performance.

Overall, the performance of SBUX in the past 1 year is driven by Revenue Growth. Which is more sustainable.

0.00%

9.57B → 9.57B

Revenue Growth

0.00%

1.39 → 1.39

Margin Expansion

-18.67%

44.12 → 35.89

P/E Change

-18.67%