Starbucks Valuation
| SBUX Stock | USD 74.05 0.73 1.00% |
At this time, the company appears to be undervalued. Starbucks has a current Real Value of $81.73 per share. The regular price of the company is $74.05. Our model measures the value of Starbucks from inspecting the company fundamentals such as Current Valuation of 105.14 B, return on asset of 0.12, and Shares Owned By Insiders of 2.00 % as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Starbucks' valuation include:
Enterprise Value 105.1 B | Enterprise Value Ebitda 15.2329 | Price Sales 2.6208 | Forward PE 20.79 | Trailing PE 20.5955 |
Undervalued
Today
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.
Since Starbucks is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Starbucks Stock. However, Starbucks' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 74.05 | Real 81.73 | Target 105.53 | Hype 74.47 | Naive 73.47 |
The intrinsic value of Starbucks' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value 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 Starbucks' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
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.
Starbucks Cash |
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Starbucks Valuation Trend
Analysing the historical paterns of Starbucks' enterprise value and its market capitalization is a good way to estimate and gauge the value of Starbucks over time and is usually enough for investors to make rational market timing decisions.
Starbucks Revenue by Product
Starbucks Total Value Analysis
Starbucks is at this time anticipated to have valuation of 105.14 B with market capitalization of 84.59 B, debt of 24.6 B, and cash on hands of 3.18 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Starbucks fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
105.14 B | 84.59 B | 24.6 B | 3.18 B |
Starbucks Investor Information
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 August 2024. The entity had 2:1 split on the 9th of April 2015. Based on the key indicators related to Starbucks' liquidity, profitability, solvency, and operating efficiency, Starbucks is doing better financially today then in previous quarter. It has a moderate chance of reporting better financial numbers in August.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.088 | 0.1571 |
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| Total Cash From Operating Activities | 7.3 B | 6.9 B |
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Starbucks Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Starbucks has an asset utilization ratio of 122.18 percent. This suggests that the Company is making $1.22 for each dollar of assets. An increasing asset utilization means that Starbucks is more efficient with each dollar of assets it utilizes for everyday operations.Starbucks Ownership Allocation
The majority of Starbucks outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Starbucks to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Starbucks. Please pay attention to any change in the institutional holdings of Starbucks as this could imply that something significant has changed or is about to change at the company. Please note that on June 21, 2024, Representative Richard W Allen of US Congress acquired $15k to $50k worth of Starbucks's common stock.Starbucks Profitability Analysis
The company reported the previous year's revenue of 35.98 B. Net Income was 4.12 B with profit before overhead, payroll, taxes, and interest of 8.39 B.Starbucks Past Distributions to stockholders
About Starbucks Valuation
Our relative valuation model uses a comparative analysis of Starbucks. We calculate exposure to Starbucks's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Starbucks's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 11.3 B | 11.9 B | |
| Pretax Profit Margin | 0.23 | 0.25 | |
| Operating Profit Margin | 0.16 | 0.09 | |
| Net Profit Margin | 0.18 | 0.19 | |
| Gross Profit Margin | 0.30 | 0.24 |
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 Paid is likely to rise to about 2.9 B in 2024, whereas Dividend Yield is likely to drop 0.01 in 2024. . At this time, Starbucks' Earnings Yield is fairly stable compared to the past year. Price Earnings To Growth Ratio is likely to rise to 0.28 in 2024, despite the fact that Retained Earnings are likely to grow to (6.2 B).
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 2.8 B | 2.9 B | |
| Dividend Yield | 0.02 | 0.01 | |
| Dividend Payout Ratio | 0.39 | 0.37 | |
| Dividend Paid And Capex Coverage Ratio | (51.24) | (48.67) |
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.
| Common Stock Shares Outstanding | 1.2 B | |
| Quarterly Earnings Growth Y O Y | -0.139 | |
| Forward Price Earnings | 20.79 |
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.Additional Tools for Starbucks Stock Analysis
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.