Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee internationally. The company operates through three segments: North America, International, and Channel Development.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS. Shaded region = analyst consensus for the current and next fiscal year (29 analysts).
| Parameter | BaseValue |
|---|---|
Initial Cash Flow | |
| Growth Rate (Yr 1-5) | % |
| Growth Rate (Yr 6-10) | % |
| Terminal Growth Rate | % |
| Discount Rate | % |
Base Case $44.91 Implied EV: $69.76B |
What growth rate is the market pricing in at $104?
The market implies +25.6% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +18.1%, reflecting heavy growth investment.
Wide moat driven primarily by roic consistency. Margin Stability is the area most vulnerable to competitive pressure.
"Market is optimistic — be cautious and ensure you have a margin of safety"
Price far exceeds estimated intrinsic value amid market euphoria — extreme risk of capital loss
