Enterprise Value to FCFF (EV/FCFF)
Free Cash Flow to The Firm (FCFF)
Starbucks Corp., FCFF calculation
US$ in thousands
Based on: 10-K (reporting date: 2026-09-27), 10-K (reporting date: 2025-09-28), 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03).
Cash flow dynamics exhibit significant volatility between 2021 and 2026, characterized by cyclical fluctuations in both operating cash generation and free cash flow to the firm (FCFF).
- Net Cash Provided by Operating Activities
- A contraction in operating cash flow is observed in 2022, dropping to approximately 4.40 billion USD from 5.99 billion USD in 2021. This is followed by a strong recovery period, with values peaking in 2024 at 6.10 billion USD. A subsequent decline occurs in 2025, falling to 4.75 billion USD, before showing a modest upward trend toward 4.99 billion USD in 2026.
- Free Cash Flow to the Firm (FCFF) Trends
- FCFF demonstrates more pronounced volatility than operating cash flows. A substantial decrease is noted in 2022, with FCFF falling to 2.92 billion USD. While a recovery to 4.08 billion USD occurred in 2023, the figure trended downward again through 2025, reaching a period low of 2.88 billion USD. A significant rebound is projected for 2026, with FCFF increasing to 4.12 billion USD.
- Analysis of Cash Flow Variance
- The differential between operating cash flow and FCFF indicates fluctuating capital expenditure requirements. The gap expanded significantly between 2023 and 2025, suggesting a period of intensified investment or higher capital outflows relative to cash generated from operations. Conversely, the narrowest gap is projected for 2026, indicating a potential reduction in capital spending or a more efficient conversion of operating cash into free cash flow.
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Interest Paid, Net of Tax
Starbucks Corp., interest paid, net of tax calculation
US$ in thousands
Based on: 10-K (reporting date: 2026-09-27), 10-K (reporting date: 2025-09-28), 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03).
2 2026 Calculation
Cash paid during the period for interest, net of capitalized interest, tax = Cash paid during the period for interest, net of capitalized interest × EITR
= 603,000 × 34.20% = 206,226
The financial trajectory of cash outflows for interest, net of tax, reflects a period of moderate volatility characterized by a growth phase peaking in 2025 and a subsequent contraction in 2026. This movement occurred alongside a consistent and accelerating increase in the effective income tax rate throughout the analyzed period.
- Interest Expenditure Patterns
- Cash paid for interest, net of tax, experienced an initial decrease between October 2021 and October 2022, moving from $392.9 million to $368.4 million. A sustained upward trend followed over the next three years, with expenditures rising to $400.6 million in 2023 and $432.0 million in 2024, reaching a peak of $435.9 million in September 2025. In the final period ending September 2026, a reduction is observed, with the amount falling to $396.8 million.
- Effective Income Tax Rate Trajectory
- The effective income tax rate maintained a steady increase from 21.60% in 2021 to 24.30% in 2024. This growth accelerated in 2025 to 25.90%, culminating in a significant spike to 34.20% by September 2026, indicating a substantial increase in the tax burden or a shift in tax jurisdiction impacts.
- Net Impact and Tax Shield Analysis
- The relationship between the rising tax rate and net interest payments is evident in the final year of the period. The sharp increase in the effective income tax rate to 34.20% in 2026 coincides with the most significant decrease in net cash paid for interest since the 2022 dip. This suggests that the higher tax rate enhanced the value of the interest tax shield, thereby reducing the net cash outflow, or that a reduction in gross interest obligations occurred simultaneously with the tax rate escalation.
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Enterprise Value to FCFF Ratio, Current
Starbucks Corp., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 131,707,128) |
| Free cash flow to the firm (FCFF) | 4,121,574) |
| Valuation Ratio | |
| EV/FCFF | 31.96 |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Airbnb Inc. | 21.47 |
| Booking Holdings Inc. | 12.19 |
| Chipotle Mexican Grill Inc. | 30.01 |
| DoorDash, Inc. | 39.53 |
| McDonald’s Corp. | 27.83 |
| EV/FCFF, Sector | |
| Consumer Services | 24.18 |
| EV/FCFF, Industry | |
| Consumer Discretionary | 52.70 |
Based on: 10-K (reporting date: 2026-09-27).
1 Click competitor name to see calculations.
If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.
Enterprise Value to FCFF Ratio, Historical
Starbucks Corp., historical EV/FCFF calculation, comparison to benchmarks
| Sep 27, 2026 | Sep 28, 2025 | Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Enterprise value (EV)1 | 131,707,126) | 109,018,538) | 123,439,688) | 131,421,619) | 124,120,910) | 137,971,696) | |
| Free cash flow to the firm (FCFF)2 | 4,121,574) | 2,877,930) | 3,750,120) | 4,075,665) | 2,924,367) | 4,911,962) | |
| Valuation Ratio | |||||||
| EV/FCFF3 | 31.96 | 37.88 | 32.92 | 32.25 | 42.44 | 28.09 | |
| Benchmarks | |||||||
| EV/FCFF, Competitors4 | |||||||
| Airbnb Inc. | — | 13.34 | 17.91 | 23.35 | 22.46 | 42.36 | |
| Booking Holdings Inc. | — | 13.74 | 19.06 | 17.62 | 14.11 | 36.39 | |
| Chipotle Mexican Grill Inc. | — | 35.20 | 49.96 | 57.71 | 51.53 | 50.61 | |
| DoorDash, Inc. | — | 39.58 | 46.68 | 31.48 | 844.08 | 65.41 | |
| McDonald’s Corp. | — | 32.99 | 33.05 | 30.11 | 35.39 | 26.32 | |
| EV/FCFF, Sector | |||||||
| Consumer Services | — | 24.28 | 28.11 | 26.85 | 28.89 | 32.14 | |
| EV/FCFF, Industry | |||||||
| Consumer Discretionary | — | 48.03 | 41.98 | 33.07 | 51.09 | 60.31 | |
Based on: 10-K (reporting date: 2026-09-27), 10-K (reporting date: 2025-09-28), 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03).
3 2026 Calculation
EV/FCFF = EV ÷ FCFF
= 131,707,126 ÷ 4,121,574 = 31.96
4 Click competitor name to see calculations.
Analysis of the enterprise value to free cash flow to the firm (EV/FCFF) ratio reveals a pattern of volatility characterized by cyclical fluctuations in both valuation and cash generation capabilities between 2021 and 2026.
- Enterprise Value Dynamics
- The enterprise value shows an inconsistent trajectory, starting at 137.97 billion in 2021 and experiencing a general downward trend to a period low of 109.02 billion by September 2025. A notable recovery is observed in 2026, with the value rebounding to 131.71 billion.
- Free Cash Flow to the Firm (FCFF) Performance
- FCFF exhibits substantial variability, reaching a peak of 4.91 billion in 2021. Significant contractions in cash flow generation are observed in 2022 and 2025, where values fell to 2.92 billion and 2.88 billion, respectively. A subsequent recovery to 4.12 billion is noted in 2026.
- EV/FCFF Ratio Interpretation
- The ratio fluctuates between a low of 28.09 and a peak of 42.44. The spike to 42.44 in 2022 was primarily driven by the sharp contraction in FCFF. A similar correlation is observed in 2025, where the ratio increased to 37.88 despite a declining enterprise value, indicating that the drop in cash flow outweighed the decrease in firm value. By 2026, the ratio normalized to 31.96, reflecting a synchronization in the recovery of both enterprise value and free cash flow.
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