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 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017 Oct 2, 2016
Net earnings attributable to Starbucks 4,199,300  928,300  3,599,200  4,518,300  2,884,700  2,817,700 
Add: Net income attributable to noncontrolling interest 1,000  (3,600) (4,600) (300) 200  1,200 
Add: Income tax expense 1,156,600  239,700  871,600  1,262,000  1,432,600  1,379,700 
Earnings before tax (EBT) 5,356,900  1,164,400  4,466,200  5,780,000  4,317,500  4,198,600 
Add: Interest expense 469,800  437,000  331,000  170,300  92,500  81,300 
Earnings before interest and tax (EBIT) 5,826,700  1,601,400  4,797,200  5,950,300  4,410,000  4,279,900 
Add: Depreciation and amortization 1,524,100  1,503,200  1,449,300  1,305,900  1,067,100  1,030,100 
Earnings before interest, tax, depreciation and amortization (EBITDA) 7,350,800  3,104,600  6,246,500  7,256,200  5,477,100  5,310,000 

Based on: 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), 10-K (reporting date: 2016-10-02).

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 decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

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) 107,335,018 
Earnings before interest, tax, depreciation and amortization (EBITDA) 7,350,800 
Valuation Ratio
EV/EBITDA 14.60
Benchmarks
EV/EBITDA, Competitors1
Carnival Corp. & plc
McDonald’s Corp. 16.69
EV/EBITDA, Sector
Consumer Services 24.96
EV/EBITDA, Industry
Consumer Discretionary 16.45

Based on: 10-K (reporting date: 2021-10-03).

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 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017 Oct 2, 2016
Selected Financial Data (US$ in thousands)
Enterprise value (EV)1 137,971,696  121,059,261  107,863,110  85,067,896  82,248,604  82,513,358 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 7,350,800  3,104,600  6,246,500  7,256,200  5,477,100  5,310,000 
Valuation Ratio
EV/EBITDA3 18.77 38.99 17.27 11.72 15.02 15.54
Benchmarks
EV/EBITDA, Competitors4
Carnival Corp. & plc 8.11 9.21 13.22
McDonald’s Corp. 17.49 21.03 17.65 16.58 14.42
EV/EBITDA, Sector
Consumer Services 28.72 68.84 15.24 13.30 14.31
EV/EBITDA, Industry
Consumer Discretionary 20.54 28.08 17.22 14.73 14.84

Based on: 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), 10-K (reporting date: 2016-10-02).

1 See details »

2 See details »

3 2021 Calculation
EV/EBITDA = EV ÷ EBITDA
= 137,971,696 ÷ 7,350,800 = 18.77

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 increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.