Starbucks Corporation

NasdaqGS:SBUX Stock Report

Market Cap: US$100.6b

Starbucks Valuation

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

Below Fair Value: SBUX ($87.97) is trading below our estimate of fair value ($118.3)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SBUX. This is calculated by dividing SBUX's market cap by their current earnings.
What is SBUX's PE Ratio?
PE Ratio26.5x
EarningsUS$3.76b
Market CapUS$100.64b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SBUX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average30.9x
CMG Chipotle Mexican Grill
56.8x15.5%US$84.2b
MCD McDonald's
25.4x6.6%US$208.0b
YUM Yum! Brands
24.2x7.9%US$36.4b
QSR Restaurant Brands International
17x10.8%US$29.5b
SBUX Starbucks
26.5x10.1%US$100.6b

Price-To-Earnings vs Peers: SBUX is good value based on its Price-To-Earnings Ratio (26.5x) compared to the peer average (30.9x).

Price to Earnings Ratio vs Industry

How does SBUX's PE Ratio compare vs other companies in the US Hospitality Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
THRS.F Agility Real Estate
1.7xn/aUS$2.05m
No more companies available in this PE range
SBUX 26.5xIndustry Avg. 23.7xNo. of Companies14PE01632486480+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SBUX is expensive based on its Price-To-Earnings Ratio (26.5x) compared to the US Hospitality industry average (23.7x).

Price to Earnings Ratio vs Fair Ratio

What is SBUX'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.

SBUX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.5x
Fair PE Ratio30.4x

Price-To-Earnings vs Fair Ratio: SBUX is good value based on its Price-To-Earnings Ratio (26.5x) compared to the estimated Fair Price-To-Earnings Ratio (30.4x).

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 SBUX forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$87.97
US$103.30
+17.4%
12.0%US$120.00US$76.00n/a30
Dec ’25US$102.46
US$103.14
+0.7%
11.9%US$120.00US$76.00n/a30
Nov ’25US$98.87
US$101.42
+2.6%
12.5%US$120.00US$76.00n/a29
Oct ’25US$97.43
US$98.25
+0.8%
13.8%US$120.00US$76.00n/a29
Sep ’25US$94.57
US$96.00
+1.5%
12.6%US$120.00US$77.00n/a29
Aug ’25US$75.11
US$87.25
+16.2%
9.8%US$112.00US$77.00n/a29
Jul ’25US$77.13
US$90.15
+16.9%
11.4%US$120.00US$77.00n/a29
Jun ’25US$80.22
US$89.65
+11.8%
11.2%US$120.00US$77.00n/a28
May ’25US$74.44
US$93.81
+26.0%
11.6%US$120.00US$78.00n/a29
Apr ’25US$91.53
US$106.22
+16.1%
7.3%US$127.00US$95.00n/a29
Mar ’25US$93.16
US$106.58
+14.4%
7.0%US$127.00US$95.00n/a30
Feb ’25US$93.37
US$107.27
+14.9%
7.0%US$127.00US$95.00n/a29
Jan ’25US$96.01
US$112.69
+17.4%
7.2%US$125.00US$100.00n/a29
Dec ’24US$99.20
US$112.93
+13.8%
7.1%US$125.00US$100.00US$102.4628
Nov ’24US$91.35
US$109.00
+19.3%
7.6%US$125.00US$99.00US$98.8728
Oct ’24US$91.27
US$112.18
+22.9%
9.1%US$150.00US$101.00US$97.4327
Sep ’24US$98.00
US$112.85
+15.2%
8.9%US$150.00US$101.00US$94.5727
Aug ’24US$101.26
US$115.12
+13.7%
8.7%US$150.00US$101.00US$75.1126
Jul ’24US$99.06
US$115.26
+16.4%
8.0%US$136.00US$101.00US$77.1327
Jun ’24US$97.52
US$115.66
+18.6%
7.9%US$136.00US$102.00US$80.2226
May ’24US$114.56
US$113.82
-0.6%
9.2%US$136.00US$86.00US$74.4428
Apr ’24US$104.13
US$112.41
+8.0%
10.5%US$138.00US$86.00US$91.5329
Mar ’24US$101.43
US$112.37
+10.8%
10.3%US$138.00US$86.00US$93.1630
Feb ’24US$109.99
US$110.00
+0.006%
10.2%US$136.00US$86.00US$93.3729
Jan ’24US$99.20
US$100.86
+1.7%
10.5%US$136.00US$86.00US$96.0129
Dec ’23US$103.37
US$99.63
-3.6%
9.9%US$136.00US$86.00US$99.2030

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/20 05:14
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/29
Annual Earnings2024/09/29

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Starbucks Corporation is covered by 69 analysts. 31 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Will ChienAccountability Research Corporation
John StaszakArgus Research Company
Edward LewisAtlantic Equities LLP