Starbucks Corp., FCFF calculation

US$ in thousands

12 months ended:	Oct 1, 2023	Oct 2, 2022	Oct 3, 2021	Sep 27, 2020	Sep 29, 2019	Sep 30, 2018
Net earnings attributable to Starbucks	4,124,500)	3,281,600)	4,199,300)	928,300)	3,599,200)	4,518,300)
Net (earnings) loss attributable to noncontrolling interests	200)	1,800)	1,000)	(3,600)	(4,600)	(300)
Net noncash charges	3,017,400)	3,246,900)	2,290,000)	3,349,500)	(196,300)	506,100)
Cash provided by (used in) changes in operating assets and liabilities	(1,133,400)	(2,133,000)	(501,200)	(2,676,400)	1,648,700)	6,913,700)
Net cash provided by operating activities	6,008,700)	4,397,300)	5,989,100)	1,597,800)	5,047,000)	11,937,800)
Cash paid during the period for interest, net of capitalized interest, net of tax¹	400,565)	368,367)	392,862)	315,139)	241,098)	111,051)
Additions to property, plant and equipment	(2,333,600)	(1,841,300)	(1,470,000)	(1,483,600)	(1,806,600)	(1,976,400)
Free cash flow to the firm (FCFF)	4,075,665)	2,924,367)	4,911,962)	429,339)	3,481,498)	10,072,451)

Based on: 10-K (reporting date: 2023-10-01), 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).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Starbucks Corp. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Starbucks Corp. FCFF decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.

Starbucks Corp., interest paid, net of tax calculation

US$ in thousands

12 months ended:	Oct 1, 2023	Oct 2, 2022	Oct 3, 2021	Sep 27, 2020	Sep 29, 2019	Sep 30, 2018
Effective Income Tax Rate (EITR)
EITR¹	23.60%	22.40%	21.60%	20.60%	19.50%	19.00%
Interest Paid, Net of Tax
Cash paid during the period for interest, net of capitalized interest, before tax	524,300)	474,700)	501,100)	396,900)	299,500)	137,100)
Less: Cash paid during the period for interest, net of capitalized interest, tax²	123,735)	106,333)	108,238)	81,761)	58,403)	26,049)
Cash paid during the period for interest, net of capitalized interest, net of tax	400,565)	368,367)	392,862)	315,139)	241,098)	111,051)

Based on: 10-K (reporting date: 2023-10-01), 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).

¹ See details »

² 2023 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
= 524,300 × 23.60% = 123,735

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

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	111,336,850)
Free cash flow to the firm (FCFF)	4,075,665)
Valuation Ratio
EV/FCFF	27.32
Benchmarks
EV/FCFF, Competitors¹
Airbnb Inc.	25.30
Booking Holdings Inc.	15.92
Carnival Corp. & plc	13.84
Chipotle Mexican Grill Inc.	70.53
McDonald’s Corp.	28.13
EV/FCFF, Sector
Consumer Services	24.66
EV/FCFF, Industry
Consumer Discretionary	32.77

Based on: 10-K (reporting date: 2023-10-01).

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.

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

	Oct 1, 2023	Oct 2, 2022	Oct 3, 2021	Sep 27, 2020	Sep 29, 2019	Sep 30, 2018
Selected Financial Data (US$ in thousands)
Enterprise value (EV)¹	131,421,619)	124,120,910)	137,971,696)	121,059,261)	107,863,110)	85,067,896)
Free cash flow to the firm (FCFF)²	4,075,665)	2,924,367)	4,911,962)	429,339)	3,481,498)	10,072,451)
Valuation Ratio
EV/FCFF³	32.25	42.44	28.09	281.97	30.98	8.45
Benchmarks
EV/FCFF, Competitors⁴
Airbnb Inc.	23.35	22.46	42.36	—	—	—
Booking Holdings Inc.	17.62	14.11	36.39	—	15.01	—
Carnival Corp. & plc	14.11	—	—	—	175.24	24.76
Chipotle Mexican Grill Inc.	57.71	51.52	50.61	146.38	56.84	—
McDonald’s Corp.	30.11	35.39	26.32	34.80	29.06	—
EV/FCFF, Sector
Consumer Services	25.62	42.27	56.26	—	28.28	—
EV/FCFF, Industry
Consumer Discretionary	32.37	55.70	66.77	52.40	31.02	—

Based on: 10-K (reporting date: 2023-10-01), 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).

¹ See details »

² See details »

³ 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 131,421,619 ÷ 4,075,665 = 32.25

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Starbucks Corp. EV/FCFF ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

Starbucks Corp. (NASDAQ:SBUX)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical