Starbucks Valuation

Is SRB0 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 SRB0 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SRB0 (€19.3) is trading below our estimate of fair value (€25.1)

Significantly Below Fair Value: SRB0 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SRB0?

Key metric: As SRB0 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SRB0. This is calculated by dividing SRB0's market cap by their current earnings.
What is SRB0's PE Ratio?
PE Ratio	30.4x
Earnings	US$3.76b
Market Cap	US$115.47b

SRB0 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	20.5x
PEG Ratio	2.9x

Price to Earnings Ratio vs Peers

How does SRB0's PE Ratio compare to its peers?

The above table shows the PE ratio for SRB0 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	39x
3690 Meituan	40.2x	28.6%	HK$974.3b
CMG Chipotle Mexican Grill	57.6x	15.5%	US$84.5b
MCD McDonald's	25.8x	6.6%	US$212.3b
CPG Compass Group	32.4x	11.9%	UK£45.4b
SRB0 Starbucks	30.4x	10.5%	€115.5b

Price-To-Earnings vs Peers: SRB0 is good value based on its Price-To-Earnings Ratio (30.4x) compared to the peer average (39x).

Price to Earnings Ratio vs Industry

How does SRB0's PE Ratio compare vs other companies in the European Hospitality Industry?

10 Companies	Price / Earnings	Estimated Growth	Market Cap

10 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: SRB0 is expensive based on its Price-To-Earnings Ratio (30.4x) compared to the European Hospitality industry average (17.5x).

Price to Earnings Ratio vs Fair Ratio

What is SRB0'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.

SRB0 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	30.4x
Fair PE Ratio	40.2x

Price-To-Earnings vs Fair Ratio: SRB0 is good value based on its Price-To-Earnings Ratio (30.4x) compared to the estimated Fair Price-To-Earnings Ratio (40.2x).

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.