Starbucks operates as a roaster, marketer, and retailer of specialty coffee, tea and other beverages and fresh food items worldwide. The company was founded in 1985 and is based in Seattle, Washington.
SBUX Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Starbucks Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Starbucks Corp ranked in the 7th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Starbucks Corp, consider:
Its compound free cash flow growth rate, as measured over the past 5.25 years, is -0.14% -- higher than only 13.67% of stocks in our DCF forecasting set.
SBUX's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 25.69% of tickers in our DCF set.
Relative to other stocks in its sector (Consumer Cyclical), Starbucks Corp has a reliance on debt greater than just 19.66% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
SYPR, WING, GCI, MLCO, and QUOT can be thought of as valuation peers to SBUX, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
Starbucks Corporation (NASDAQ: SBUX ) has told employees it is further reducing working hours to match reduced demand, even as coronavirus lockdowns are eased, the Wall Street Journal reported Monday. What Happened The coffee chain company said employees could either choose to work reduced hours or take unpaid leaves through September, according to the Wall Street Journal. Starbucks reopened a majority of its stores in the United States early May, after nearly two months of … Full story available on Benzinga.com
(Bloomberg Opinion) -- One of the more popular sentiments expressed on Twitter over the weekend was that the astronauts who left Earth on Saturday made a good choice. After months of suffering from a global pandemic that has caused mass unemployment, school shutdowns and over 100,000 deaths, Americans are now reeling from a wave of nationwide protests following the death of a black man at the hands of Minneapolis police. What should companies say and do amid events so fraught that many people would prefer not to be on the planet?“It’s always risky for brands to weigh in on deep social unrest,” says reputation-management guru Helio Fred Garcia, president of Logos Consulting Group. Companies have learned this the hard way before — such as when Starbucks Corp. hatched an ill-advised effort...
New Jersey took a big step Monday toward reopening more businesses — in two weeks. The announcement comes as a number of states eased restrictions imposed to fight the spread of the coronavirus more than two months ago.