Stock Analysis on Net

Starbucks Corp. (NASDAQ:SBUX)

Enterprise Value to EBITDA (EV/EBITDA) 

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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Starbucks Corp., EBITDA calculation

US$ in thousands

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12 months ended: Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017
Net earnings attributable to Starbucks 3,281,600 4,199,300 928,300 3,599,200 4,518,300 2,884,700
Add: Net income attributable to noncontrolling interest 1,800 1,000 (3,600) (4,600) (300) 200
Add: Income tax expense 948,500 1,156,600 239,700 871,600 1,262,000 1,432,600
Earnings before tax (EBT) 4,231,900 5,356,900 1,164,400 4,466,200 5,780,000 4,317,500
Add: Interest expense 482,900 469,800 437,000 331,000 170,300 92,500
Earnings before interest and tax (EBIT) 4,714,800 5,826,700 1,601,400 4,797,200 5,950,300 4,410,000
Add: Depreciation and amortization 1,529,400 1,524,100 1,503,200 1,449,300 1,305,900 1,067,100
Earnings before interest, tax, depreciation and amortization (EBITDA) 6,244,200 7,350,800 3,104,600 6,246,500 7,256,200 5,477,100

Based on: 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-10-01).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. Starbucks Corp. EBITDA increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.

Enterprise Value to EBITDA Ratio, Current

Starbucks Corp., current EV/EBITDA calculation, comparison to benchmarks

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Selected Financial Data (US$ in thousands)
Enterprise value (EV) 131,370,506
Earnings before interest, tax, depreciation and amortization (EBITDA) 6,244,200
Valuation Ratio
EV/EBITDA 21.04
Benchmarks
EV/EBITDA, Competitors1
Carnival Corp. & plc
McDonald’s Corp. 21.82
EV/EBITDA, Sector
Consumer Services 27.49
EV/EBITDA, Industry
Consumer Discretionary 19.34

Based on: 10-K (reporting date: 2022-10-02).

1 Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.


Enterprise Value to EBITDA Ratio, Historical

Starbucks Corp., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017
Selected Financial Data (US$ in thousands)
Enterprise value (EV)1 124,120,910 137,971,696 121,059,261 107,863,110 85,067,896 82,248,604
Earnings before interest, tax, depreciation and amortization (EBITDA)2 6,244,200 7,350,800 3,104,600 6,246,500 7,256,200 5,477,100
Valuation Ratio
EV/EBITDA3 19.88 18.77 38.99 17.27 11.72 15.02
Benchmarks
EV/EBITDA, Competitors4
Carnival Corp. & plc 8.11 9.21 13.22
McDonald’s Corp. 20.75 17.49 21.03 17.65 16.58
EV/EBITDA, Sector
Consumer Services 26.30 28.71 68.84 15.24 13.30
EV/EBITDA, Industry
Consumer Discretionary 19.02 20.44 28.14 16.88 14.84

Based on: 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-10-01).

1 See details »

2 See details »

3 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= 124,120,910 ÷ 6,244,200 = 19.88

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. Starbucks Corp. EV/EBITDA ratio decreased from 2020 to 2021 but then slightly increased from 2021 to 2022.