At this time, the company appears to be fairly valued. Starbucks has a current Real Value of $96.31 per share. The regular price of the company is $95.02. Our model measures the value of Starbucks from inspecting the company fundamentals such as Return On Asset of 0.13, shares owned by insiders of 2.03 %, and Current Valuation of 128.65 B as well as reviewing its technical indicators and Probability Of Bankruptcy. In general, we recommend acquiring undervalued stocks and dropping overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other. Key fundamental drivers impacting Starbucks' valuation include:
Enterprise Value Ebitda
Starbucks Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Starbucks's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.Free Cash Flow is likely to rise to about 10.7 B in 2024. Enterprise Value is likely to rise to about 99.3 B in 2024.
Please note that Starbucks' price fluctuation is very steady at this time. Calculation of the real value of Starbucks is based on 3 months time horizon. Increasing Starbucks' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The real value of a stock, also known as the intrinsic value, is the underlying worth of a company that is reflected in its stock price. It is based on the company's financial performance, assets, liabilities, growth prospects, management team, industry conditions, and other relevant factors. The real value of a stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, price-to-book ratio, and other valuation metrics. The real value of a stock may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence the stock's price. It is important to note that the real value of a stock is not a fixed number and may change over time based on changes in the company's performance and other relevant factors.
Estimating the potential upside or downside of Starbucks helps investors to forecast how Starbucks stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Starbucks more accurately as focusing exclusively on Starbucks' fundamentals will not take into account other important factors:
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Starbucks' intrinsic value based on its ongoing forecasts of Starbucks' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Starbucks' closest peers. When choosing an evaluation method for Starbucks, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Starbucks Valuation Drivers Correlation
Many accounts on the financial statements of Starbucks are highly interrelated and sometimes correlated. Consequently, when conducting Starbucks's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Starbucks
Click cells to compare fundamentals
Starbucks Valuation Trend
Knowing Starbucks' actual value is paramount for traders to make sound investment determinations. Starbucks' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Starbucks' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Starbucks' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Starbucks Market CapStarbucks is currently regarded as top stock in market capitalization category among related companies. Market capitalization of Consumer Discretionary industry is at this time estimated at about 2.17 Trillion. Starbucks holds roughly 107.58 Billion in market capitalization claiming about 5% of stocks in Consumer Discretionary industry.
Starbucks Valuation Ratios as Compared to CompetitionComparative valuation techniques use various fundamental indicators to help in determining Starbucks's current stock value. Our valuation model uses many indicators to compare Starbucks value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Starbucks competition to find correlations between indicators driving Starbucks's intrinsic value. More Info. Starbucks is currently regarded as top stock in beta category among related companies. It is currently regarded as top stock in last dividend paid category among related companies creating about 2.22 of Last Dividend Paid per Beta. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Starbucks by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Starbucks' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Starbucks' earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Starbucks' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Starbucks and how it compares across the competition.
About Starbucks ValuationThe stock valuation mechanism determines the current worth of Starbucks on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Starbucks. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Starbucks based exclusively on its fundamental and basic technical indicators. By analyzing Starbucks's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Starbucks's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Starbucks. We calculate exposure to Starbucks's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Starbucks's related companies.
8 Steps to conduct Starbucks' Valuation AnalysisCompany's valuation is the process of determining the worth of any company in monetary terms. It estimates Starbucks' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Starbucks' valuation analysis, follow these 8 steps:
- Gather financial information: Obtain Starbucks' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Starbucks' revenue streams: Identify Starbucks' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Starbucks' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Starbucks' growth potential: Evaluate Starbucks' management, business model, and growth potential.
- Determine Starbucks' financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Starbucks' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Starbucks represents a small ownership stake in the entity. As a stockholder of Starbucks, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Starbucks Dividends Analysis For Valuation
Dividends per Basic Common Share is likely to rise to 1.38 in 2024, whereas Payment of Dividends and Other Cash Distributions is likely to drop (1.9 B) in 2024. . At this time, Starbucks' Accumulated Retained Earnings Deficit is fairly stable as compared to the past year. Price to Earnings Ratio is likely to rise to 17.84 in 2024, whereas Earning Before Interest and Taxes EBIT is likely to drop slightly above 5.5 B in 2024.
|Projected for 2024
|Payment of Dividends and Other Cash Distributions
|Dividends per Basic Common Share
There are various types of dividends Starbucks can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Starbucks shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Starbucks directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Starbucks pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Starbucks by the value of the dividends paid out.
Starbucks Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Starbucks does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Starbucks Current Valuation Indicators
Valuation refers to the process of determining the present value of Starbucks and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Starbucks we look at many different elements of the entity such as Starbucks's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Starbucks' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Starbucks' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Starbucks, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Starbucks' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Starbucks' worth.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 estimate.For more information on how to buy Starbucks Stock please use our How to Invest in Starbucks guide.You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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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
Revenue Per Share
Quarterly Revenue Growth
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.
Please note, there is a significant difference between Starbucks' value and its price as these two are different measures arrived at by different 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.