Starbucks Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: SRB (€82.17) is trading below our estimate of fair value (€108.77)

Significantly Below Fair Value: SRB is trading below fair value by more than 20%.


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

SRB 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/Revenue3.3x
Enterprise Value/EBITDA16.7x
PEG Ratio2x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SRB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average41.5x
CMG Chipotle Mexican Grill
68x16.2%US$87.5b
3690 Meituan
46.1x38.0%HK$691.0b
MCD McDonald's
23.3x6.7%US$197.2b
CPG Compass Group
28.7x11.6%UK£37.7b
SRB Starbucks
23.3x11.5%€99.9b

Price-To-Earnings vs Peers: SRB is good value based on its Price-To-Earnings Ratio (23.3x) compared to the peer average (41.5x).


Price to Earnings Ratio vs Industry

How does SRB's PE Ratio compare vs other companies in the European Hospitality Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a64.1%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a64.1%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: SRB is expensive based on its Price-To-Earnings Ratio (23.3x) compared to the European Hospitality industry average (17.7x).


Price to Earnings Ratio vs Fair Ratio

What is SRB'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.

SRB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.3x
Fair PE Ratio32.3x

Price-To-Earnings vs Fair Ratio: SRB is good value based on its Price-To-Earnings Ratio (23.3x) compared to the estimated Fair Price-To-Earnings Ratio (32.3x).


Analyst Price Targets

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

The above table shows the analyst SRB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€82.17
€96.11
+17.0%
8.3%€112.18€81.33n/a29
Apr ’25€84.90
€98.89
+16.5%
7.3%€118.24€88.45n/a29
Mar ’25€86.30
€98.36
+14.0%
7.0%€117.20€87.67n/a30
Feb ’25€84.90
€98.69
+16.2%
7.0%€116.84€87.40n/a29
Jan ’25€86.80
€102.32
+17.9%
7.2%€113.50€90.80n/a29
Dec ’24€90.50
€103.72
+14.6%
7.1%€114.81€91.85n/a28
Nov ’24€86.40
€103.24
+19.5%
7.6%€118.40€93.77n/a28
Oct ’24€86.40
€105.92
+22.6%
9.1%€141.63€95.36n/a27
Sep ’24€90.20
€103.88
+15.2%
8.9%€138.08€92.97n/a27
Aug ’24€91.80
€104.42
+13.8%
8.7%€136.07€91.62n/a26
Jul ’24€90.60
€106.77
+17.8%
8.0%€125.98€93.56n/a27
Jun ’24€91.00
€108.22
+18.9%
7.9%€127.26€95.44n/a26
May ’24€102.60
€103.61
+1.0%
9.2%€123.80€78.29n/a28
Apr ’24€95.46
€104.48
+9.4%
10.5%€128.26€79.93€84.9029
Mar ’24€94.84
€105.07
+10.8%
10.3%€129.04€80.42€86.3030
Feb ’24€99.31
€101.41
+2.1%
10.2%€125.38€79.28€84.9029
Jan ’24€92.96
€95.75
+3.0%
10.5%€129.10€81.64€86.8029
Dec ’23€97.47
€96.49
-1.0%
9.9%€131.72€83.29€90.5030
Nov ’23€88.39
€96.77
+9.5%
10.0%€134.90€79.35€86.4030
Oct ’23€87.98
€99.44
+13.0%
9.9%€138.19€81.29€86.4030
Sep ’23€83.88
€93.47
+11.4%
12.0%€134.78€79.28€90.2028
Aug ’23€82.89
€90.12
+8.7%
13.0%€133.02€78.25€91.8028
Jul ’23€75.02
€86.80
+15.7%
13.4%€127.65€71.33€90.6029
Jun ’23€71.93
€86.80
+20.7%
13.4%€127.65€71.33€91.0029
May ’23€71.98
€99.18
+37.8%
13.2%€128.96€76.80€102.6030
Apr ’23€82.20
€101.87
+23.9%
9.5%€122.15€85.96€95.4629

Analyst Forecast: Target price is less than 20% higher than the current share price.


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