Starbucks Valuation

Is SBUXD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SBUXD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SBUXD ($8.75) is trading above our estimate of fair value ($7.59)

Significantly Below Fair Value: SBUXD is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SBUXD?

Key metric: As SBUXD is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SBUXD. This is calculated by dividing SBUXD's market cap by their current earnings.
What is SBUXD's PE Ratio?
PE Ratio	30.9x
Earnings	US$3.76b
Market Cap	US$113.45b

SBUXD key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	3.8x
Enterprise Value/EBITDA	20.2x
PEG Ratio	3x

Price to Earnings Ratio vs Peers

How does SBUXD's PE Ratio compare to its peers?

The above table shows the PE ratio for SBUXD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	42x
CMG Chipotle Mexican Grill	57x	15.5%	US$81.8b
3690 Meituan	41x	28.6%	HK$990.9b
MCD McDonald's	25.2x	6.6%	US$206.7b
HAVA Havanna Holding	44.7x	n/a	AR$309.6b
SBUXD Starbucks	30.9x	10.5%	US$113.4b

Price-To-Earnings vs Peers: SBUXD is good value based on its Price-To-Earnings Ratio (30.9x) compared to the peer average (42x).

Price to Earnings Ratio vs Industry

How does SBUXD's PE Ratio compare vs other companies in the South American Hospitality Industry?

3 Companies	Price / Earnings	Estimated Growth	Market Cap

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: SBUXD is expensive based on its Price-To-Earnings Ratio (30.9x) compared to the South American Hospitality industry average (17.1x).

Price to Earnings Ratio vs Fair Ratio

What is SBUXD's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SBUXD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	30.9x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SBUXD's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.