Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 7.12%, higher than industry average of 3.46%.

Growth Trajectory

Profitability

In the growth phase company makes 10.76% profit on every dollar of sales, higher than industry average of 10.40%.

Profitability Trajectory

Risk Profile

Investors expect at least 4.99% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
55.65B USD
Equity Value
32.27B USD
FCF Yield
33.02%
Average ROIC
19.66%
Cost of Capital
6.38%
P/E Ratio
29.89x
Financial MetricMost Recent 12 months (USD)Previous Year (USD)
Revenues36.69B USD36.18B USD
Operating Income or EBIT4.21B USD5.53B USD
Interest Expense536.80M USD562M USD
Book Value Of Equity-7.69B USD-7.45B USD
Book Value Of Debt27.89B USD25.80B USD
Cash and Marketable Securities4.51B USD3.54B USD
Number of Shares Outstanding1.14B--
Minority interests7.30M USD0 USD
Current Stock Price83.80 USD--
Effective Tax Rate24.00%--
Marginal Tax Rate25.00%--

Performance vs Industry

Revenue Growth
-2.04%
1.41%Company
vs
3.45%Industry
Below Industry
Operating Margin
+1.07%
11.47%Company
vs
10.40%Industry
Above Industry
Starbucks Corporation demonstrates superior operational efficiency with margins above industry average, indicating effective cost management.

Terminal Value Analysis

Growth Rate
4.59%
Cost of Capital
8.83%
Return on Capital
8.83%
Reinvestment Rate
52.09%
Terminal value represents 61% of total enterprise value, based on 4.59% perpetual growth and 8.83% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 33.99B USD Add
Present Value (Cash Flow Over Next 10 Years) 21.66B USD Add
Value of Operating Assets 55.65B USD Sub-total
Debt 27.88B USD Subtract
Minority Interests 7.30M USD Subtract
Cash 4.50B USD Add
Value of Equity 32.27B USD Sub-total
Number of Shares 1.14B shares Divisor
Estimated Value per Share (Fair Value) 28.39 USD Total
Current Market Price 84.17 USD Reference

Financial Projections

Total FCF Present Value
21.66B USD
Avg Revenue Growth
5.61%
Avg Operating Margin
10.60%
Avg ROIC
19.66%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue38.99B USD41.77B USD44.74B USD47.93B USD51.34B USD54.74B USD58.08B USD61.34B USD64.47B USD67.44B USD70.54B USD
Growth Rate 6.28% 7.12% 7.12% 7.12% 7.12% 6.61% 6.11% 5.60% 5.10% 4.59% 4.59%
PROFITABILITY
Operating Income4.47B USD4.59B USD4.81B USD5.04B USD5.28B USD5.63B USD5.97B USD6.30B USD6.63B USD6.93B USD7.25B USD
Operating Margin 11.47% 11.00% 10.76% 10.52% 10.28% 10.28% 10.28% 10.28% 10.28% 10.28% 10.28%
EBIT (1-tax)3.40B USD3.49B USD3.65B USD3.83B USD4.01B USD4.26B USD4.51B USD4.75B USD4.98B USD5.20B USD5.44B USD
CASH FLOW
Reinvestment770.73M USD825.61M USD884.41M USD947.39M USD942.99M USD1.85B USD1.80B USD1.73B USD1.64B USD1.72B USD2.83B USD
Free Cash Flow2.63B USD2.66B USD2.77B USD2.88B USD3.07B USD2.41B USD2.70B USD3.01B USD3.34B USD3.48B USD2.60B USD
Terminal Value--------------------61.63B USD
Present Value2.50B USD2.41B USD2.39B USD2.37B USD2.40B USD1.78B USD1.88B USD1.95B USD2.00B USD1.91B USD—
EFFICIENCY
ROIC 21.67% 21.20% 21.16% 21.09% 20.98% 21.27% 20.60% 20.04% 19.58% 19.18% 8.83%
Cost of Capital 4.98% 4.98% 4.98% 4.98% 4.98% 5.75% 6.52% 7.29% 8.06% 8.83% 8.83%
Sales/Capital 3.60x 3.60x 3.60x 3.60x 3.60x 1.80x 1.80x 1.80x 1.80x 1.80x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow ($B)
Reinvestment ($B)