Starbucks Valuation

Q: What is the Fair Price of SBUB34 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

SBUB34 (R$592.59) is trading above our estimate of [[fair value]] (R$473.36)

Is SBUB34 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

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 SBUB34 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SBUB34 (R$592.59) is trading above our estimate of fair value (R$473.36)

Significantly Below Fair Value: SBUB34 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SBUB34?

Key metric: As SBUB34 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SBUB34. This is calculated by dividing SBUB34's market cap by their current earnings.
What is SBUB34's PE Ratio?
PE Ratio	30.9x
Earnings	US$3.76b
Market Cap	US$113.45b

SBUB34 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 SBUB34's PE Ratio compare to its peers?

The above table shows the PE ratio for SBUB34 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	38.8x
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
CPG Compass Group	31.9x	11.8%	UK£44.9b
SBUB34 Starbucks	30.9x	10.5%	R$113.4b

Price-To-Earnings vs Peers: SBUB34 is good value based on its Price-To-Earnings Ratio (30.9x) compared to the peer average (38.8x).

Price to Earnings Ratio vs Industry

How does SBUB34'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: SBUB34 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 SBUB34'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.

SBUB34 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	30.9x
Fair PE Ratio	44.9x

Price-To-Earnings vs Fair Ratio: SBUB34 is good value based on its Price-To-Earnings Ratio (30.9x) compared to the estimated Fair Price-To-Earnings Ratio (44.9x).

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.