Is Starbucks Stock a Good Investment?

Starbucks Investment Advice

  SBUX
To provide specific investment advice or recommendations on Starbucks stock, we recommend investors consider the following general factors when evaluating Starbucks. This will help you to make an informed decision on whether to include Starbucks in one of your diversified portfolios:
  • Examine Starbucks' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research Starbucks' leadership team and their track record. Good management can help Starbucks navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Hotels, Restaurants & Leisure space and any emerging trends that could impact Starbucks' business and its evolving consumer preferences.
  • Compare Starbucks' performance and market position to its competitors. Analyze how Starbucks is positioned in terms of product offerings, innovation, and market share.
  • Check if Starbucks pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about Starbucks' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Starbucks stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Starbucks is a good investment.
 
Sell
 
Buy
Strong Hold
Macroaxis provides unbiased trade recommendation on Starbucks that should be used to complement current analysts and expert consensus on Starbucks. Our advice engine determines the firm's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon. To make sure Starbucks is not overpriced, please validate all Starbucks fundamentals, including its price to earning, cash flow from operations, current liabilities, as well as the relationship between the cash and equivalents and beta . Given that Starbucks has a price to sales of 2.62 X, we advise you to double-check Starbucks market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Market Performance

Very WeakDetails

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Follows the market closelyDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails

Examine Starbucks Stock

Researching Starbucks' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 76.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.18. Starbucks last dividend was issued on the 16th of May 2024. The entity had 2:1 split on the 9th of April 2015.
To determine if Starbucks is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Starbucks' research are outlined below:
Starbucks generated a negative expected return over the last 90 days
Starbucks has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations
The company currently holds 24.6 B in liabilities with Debt to Equity (D/E) ratio of 807.4, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Starbucks has a current ratio of 0.75, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Debt can assist Starbucks until it has trouble settling it off, either with new capital or with free cash flow. So, Starbucks' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Starbucks sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Starbucks to invest in growth at high rates of return. When we think about Starbucks' use of debt, we should always consider it together with cash and equity.
Over 76.0% of Starbucks shares are owned by institutional investors
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Starbucks Quarterly Good Will

3.23 Billion

Starbucks uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Starbucks. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Starbucks' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
30th of January 2024
Upcoming Quarterly Report
View
7th of May 2024
Next Financial Report
View
31st of December 2023
Next Fiscal Quarter End
View
7th of November 2024
Next Fiscal Year End
View
30th of September 2023
Last Quarter Report
View
30th of September 2023
Last Financial Announcement
View
Earnings surprises can significantly impact Starbucks' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Starbucks' investors have experienced.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
2009-04-29
2009-03-310.070.080.0114 
2008-07-30
2008-06-300.090.08-0.0111 
2008-04-30
2008-03-310.080.090.0112 
2007-11-15
2007-09-300.10.110.0110 
2006-11-16
2006-09-300.080.090.0112 
2006-05-03
2006-03-310.070.080.0114 
2006-02-01
2005-12-310.10.110.0110 
2005-11-17
2005-09-300.070.080.0114 

Know Starbucks' Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Starbucks is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Starbucks backward and forwards among themselves. Starbucks' institutional investor refers to the entity that pools money to purchase Starbucks' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Fisher Asset Management, Llc2023-12-31
11.4 M
Wells Fargo & Co2023-12-31
10.8 M
Amvescap Plc.2023-12-31
10.5 M
Nuveen Asset Management, Llc2023-12-31
10 M
Charles Schwab Investment Management Inc2023-12-31
10 M
Bank Of New York Mellon Corp2023-12-31
9.6 M
Fmr Inc2023-12-31
9.4 M
Legal & General Group Plc2023-12-31
8.8 M
Loomis, Sayles & Company Lp2023-12-31
8.6 M
Vanguard Group Inc2023-12-31
107.9 M
Blackrock Inc2023-12-31
78.8 M
Note, although Starbucks' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Starbucks' market capitalization trends

The company currently falls under 'Large-Cap' category with a current market capitalization of 88.18 B. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate Starbucks's market, we take the total number of its shares issued and multiply it by Starbucks's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and those looking for more risk prefer small-cap and mid-cap equities.

Market Cap

571.2 Million

Starbucks' profitablity analysis

Starbucks' profitability indicators refer to fundamental financial ratios that showcase Starbucks' ability to generate income relative to its revenue or operating costs. If, let's say, Starbucks is currently losing money, the management's focus should be on how to reverse that trend. However, when revenue exceeds expenses, Starbucks' executives or investors may be in less hurry to break that information down - which is where profitability analysis comes into play. Gaining a greater understanding of Starbucks' profitability requires more research than a typical breakdown of Starbucks' financial statements. By doing a profitability analysis, companies can identify areas needing attention, and investors can make a profitable trade.
Last ReportedProjected for Next Year
Return On Tangible Assets 0.23  0.24 
Return On Capital Employed 0.21  0.18 
Return On Assets 0.19  0.20 
Return On Equity 3.86  4.06 
The company has Profit Margin (PM) of 0.11 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.12 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.12.
Determining Starbucks' profitability involves analyzing its financial statements and using various financial metrics to determine if Starbucks is a good buy. For example, gross profit margin measures Starbucks' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Starbucks' profitability and make more informed investment decisions.

Starbucks' Earnings Breakdown by Geography

The data published in Starbucks' official financial statements usually reflect Starbucks' business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of Starbucks. For example, before you start analyzing numbers published by Starbucks accountants, it's critical to develop an understanding of what Starbucks' liquidity, profitability, and earnings quality are in the context of the Hotels, Restaurants & Leisure space in which it operates.
Please note, the presentation of Starbucks' financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Starbucks' management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in Starbucks' accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Starbucks. Please utilize our Beneish M Score to check the likelihood of Starbucks' management manipulating its earnings.

Evaluate Starbucks' management efficiency

Starbucks has return on total asset (ROA) of 0.1206 % which means that it generated a profit of $0.1206 on every $100 spent on assets. This is way below average. Starbucks' management efficiency ratios could be used to measure how well Starbucks manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Starbucks' Return On Tangible Assets are fairly stable compared to the past year. Return On Assets is likely to rise to 0.20 in 2024, whereas Return On Capital Employed is likely to drop 0.18 in 2024. At this time, Starbucks' Total Assets are fairly stable compared to the past year. Non Current Assets Total is likely to rise to about 26.7 B in 2024, whereas Other Current Assets are likely to drop slightly above 309.8 M in 2024.
Last ReportedProjected for Next Year
Book Value Per Share 0.85  0.89 
Net Current Asset Value 0.00  0.00 
Tangible Asset Value 0.00  0.00 
Tangible Book Value Per Share(2.46)(2.34)
Enterprise Value Over EBITDA 13.83  23.18 
Price Book Value Ratio 65.71  69.00 
Enterprise Value Multiple 13.83  23.18 
Price Fair Value 65.71  69.00 
Enterprise Value666.2 M632.8 M
The analysis of Starbucks' management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze Starbucks' future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of Starbucks Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.
Dividend Yield
0.0303
Forward Dividend Yield
0.0303
Forward Dividend Rate
2.28
Beta
0.966

Basic technical analysis of Starbucks Stock

As of the 18th of May 2024, Starbucks has the Variance of 5.0, risk adjusted performance of (0.06), and Coefficient Of Variation of (901.43). In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Starbucks, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We are able to break down and analyze data for thirteen technical drivers for Starbucks, which can be compared to its competition. Please validate Starbucks mean deviation and maximum drawdown to decide if Starbucks is priced more or less accurately, providing market reflects its prevalent price of 77.85 per share. Given that Starbucks has information ratio of (0.16), we advise you to double-check Starbucks's current market performance to make sure the company can sustain itself at a future point.

Starbucks' insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Starbucks insiders, such as employees or executives, is commonly permitted as long as it does not rely on Starbucks' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Starbucks insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

Starbucks' Outstanding Corporate Bonds

Starbucks issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Starbucks uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Starbucks bonds can be classified according to their maturity, which is the date when Starbucks has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

Understand Starbucks' technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Starbucks' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

Consider Starbucks' intraday indicators

Starbucks intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Starbucks stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

Starbucks Corporate Filings

F4
17th of May 2024
The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities
ViewVerify
8K
30th of April 2024
Report filed with the SEC to announce major events that shareholders should know about
ViewVerify
F3
8th of April 2024
The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock
ViewVerify
13th of March 2024
Other Reports
ViewVerify
Starbucks time-series forecasting models is one of many Starbucks' stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Starbucks' historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Starbucks Stock media impact

Far too much social signal, news, headlines, and media speculation about Starbucks that are available to investors today. That information is available publicly through Starbucks media outlets and privately through word of mouth or via Starbucks internal channels. However, regardless of the origin, that massive amount of Starbucks data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Starbucks news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Starbucks relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Starbucks' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Starbucks alpha.

Starbucks Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Starbucks can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Starbucks Historical Investor Sentiment

Investor biases related to Starbucks' public news can be used to forecast risks associated with an investment in Starbucks. The trend in average sentiment can be used to explain how an investor holding Starbucks can time the market purely based on public headlines and social activities around Starbucks. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Starbucks' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Starbucks and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Starbucks news discussions. The higher the estimate score, the more favorable the investor's outlook on Starbucks.

Starbucks Maximum Pain Price across 2024-05-24 Option Contracts

Starbucks' options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Starbucks close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Starbucks' options.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Starbucks without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Starbucks Corporate Management

Elected by the shareholders, the Starbucks' board of directors comprises two types of representatives: Starbucks inside directors who are chosen from within the company, and outside directors, selected externally and held independent of Starbucks. The board's role is to monitor Starbucks' management team and ensure that shareholders' interests are well served. Starbucks' inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, Starbucks' outside directors are responsible for providing unbiased perspectives on the board's policies.
Ashish MishraDeputy VPProfile
Bradley LermanExecutive CounselProfile
Aranthan IIExecutive AffairsProfile
Tiffany WillisVice EngagementProfile
Michelle BurnsSocial CoffeeProfile
Michael ConwayGroup DevelopmentProfile

How to buy Starbucks Stock?

To provide specific investment advice or recommendations on Starbucks stock, we recommend investors consider the following general factors when evaluating Starbucks. This will help you to make an informed decision on whether to include Starbucks in one of your diversified portfolios:
  • Examine Starbucks' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research Starbucks' leadership team and their track record. Good management can help Starbucks navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Hotels, Restaurants & Leisure space and any emerging trends that could impact Starbucks' business and its evolving consumer preferences.
  • Compare Starbucks' performance and market position to its competitors. Analyze how Starbucks is positioned in terms of product offerings, innovation, and market share.
  • Check if Starbucks pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about Starbucks' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Starbucks stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Starbucks is a good investment.

Already Invested in Starbucks?

The danger of trading Starbucks is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Starbucks is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Starbucks. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Starbucks is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Starbucks offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Starbucks' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Starbucks Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Starbucks Stock:
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Starbucks. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in employment.
For more information on how to buy Starbucks Stock please use our How to Invest in Starbucks guide.
You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

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When running Starbucks' price analysis, check to measure Starbucks' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Starbucks is operating at the current time. Most of Starbucks' value examination focuses on studying past and present price action to predict the probability of Starbucks' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Starbucks' price. Additionally, you may evaluate how the addition of Starbucks to your portfolios can decrease your overall portfolio volatility.
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Is Starbucks' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Starbucks. If investors know Starbucks will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Starbucks listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.14)
Dividend Share
2.24
Earnings Share
3.63
Revenue Per Share
32.048
Quarterly Revenue Growth
(0.02)
The market value of Starbucks is measured differently than its book value, which is the value of Starbucks that is recorded on the company's balance sheet. Investors also form their own opinion of Starbucks' value that differs from its market value or its book value, called intrinsic value, which is Starbucks' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Starbucks' market value can be influenced by many factors that don't directly affect Starbucks' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Starbucks' value and its price, as these two are different measures arrived at by various means. Investors typically determine if Starbucks is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Starbucks' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.