Starbucks Corp. (NASDAQ:SBUX)

The financial ratios for the company over the annual periods exhibit notable trends that highlight changes in market valuation relative to earnings, operating profit, and sales.

Price to Earnings (P/E) Ratio

The P/E ratio shows significant fluctuation. It was extremely high at 118.26 in 2020, suggesting an overvaluation or unusually low earnings in that year. Subsequently, it dropped sharply to around 31.0 in 2021, stabilizing within the range of approximately 29 to 34 over the next three years. There is a marked increase again in 2025 to 51.93, indicating a potential rise in market price relative to earnings or a decrease in earnings.

Price to Operating Profit (P/OP) Ratio

This ratio declined steadily from 70.29 in 2020 to 20.44 in 2023, suggesting the market placed lower multiples on operating profit over this period, possibly reflecting improving operating profitability or lower market valuations. In 2024, the ratio was stable at 20.6 before increasing to 32.83 in 2025, signaling a shift towards higher valuation multiples compared to operating profit.

Price to Sales (P/S) Ratio

The P/S ratio exhibited a consistent downward trend from 4.67 in 2020 to 2.59 in 2025. This decline implies the market valuation per unit of sales decreased over time, potentially due to sales growth outpacing price appreciation or a changing market perception of the company's sales quality and growth prospects.

Price to Book Value (P/BV) Ratio

No data is available for this ratio across the periods analyzed, preventing any assessment of market valuation relative to book value.

Overall, the data reflects a normalization of valuation multiples after a peak in 2020, with relatively stable P/E and P/OP ratios from 2021 through 2024, followed by increases in 2025. The consistent decrease in the P/S ratio indicates a trend of declining market prices relative to sales figures. These patterns suggest changing investor sentiment and evolving financial performance metrics impacting valuation over the analyzed timeframe.

The analysis of the financial trends over the periods in question indicates notable fluctuations in the share price, earnings per share (EPS), and price-to-earnings (P/E) ratio.

Share Price

The share price exhibited volatility across the observed years, beginning at $93.53 and reaching a peak at $110.78 during the second period. Subsequently, it declined and demonstrated fluctuations, decreasing to $84.78 by the last reported period. This downward trend in recent periods suggests a reduction in market valuation relative to prior peaks.

Earnings Per Share (EPS)

The EPS metric showed significant variation, initially starting low at $0.79, then sharply increasing to $3.58 in the next period, indicating improved profitability or earnings growth. Following this peak, EPS declined and oscillated in the subsequent periods, ending at $1.63, a considerable decrease compared to the mid-observation peak. This pattern suggests challenges in maintaining sustained earnings growth.

Price-to-Earnings (P/E) Ratio

The P/E ratio began at an extremely high level of 118.26, reflecting possibly low initial earnings relative to share price or investor expectations not fully aligned with earnings. It then dropped significantly and remained relatively stable around the 29 to 34 range across the middle periods, indicating a normalization or stabilization of price relative to earnings. However, it surged again to 51.93 in the final period, implying either a decrease in earnings without a proportional drop in share price or increased investor optimism despite earnings decline.

In summary, the company's financial indicators illustrate a period of initial growth in earnings and market valuation, followed by increased volatility in both market price and earnings performance. The pronounced volatility in the P/E ratio, especially its resurgence in the final period, suggests shifting investor sentiments or market conditions affecting valuation multiples. The declining trend in both share price and EPS toward the end of the series warrants further investigation into underlying operational or market challenges.

The analysis of the financial data over the periods from 2020 to 2025 reveals several significant trends in the key metrics observed.

Share Price

The share price experienced fluctuations throughout the period. Initially, it rose from $93.53 in 2020 to a peak of $110.78 in 2021, suggesting a positive market sentiment or improved company performance during that time. However, after this peak, the share price generally declined with some recovery in 2023. It decreased to $84.78 by 2025, which may indicate challenges faced by the company or broader market factors contributing to a lower valuation.

Operating Profit Per Share

The operating profit per share showed notable volatility. Starting at $1.33 in 2020, it sharply increased to over $4 in 2021 and maintained a relatively high level through 2024, with some fluctuations between $4.02 and $5.16. However, there was a significant decline to $2.58 in 2025, suggesting a potential reduction in operational efficiency or profitability which may have impacted investor confidence and the share price.

Price to Operating Profit Ratio (P/OP)

The price to operating profit ratio exhibited a marked decrease from 70.29 in 2020 to a low around 20.44-20.6 between 2023 and 2024, indicative of the stock becoming more reasonably valued relative to its operating profit. Nonetheless, by 2025, this ratio increased again to 32.83, reflecting either a decrease in operating profit per share or an increase in share price relative to operating profit, possibly indicating changed market perceptions or valuation adjustments.

Overall, the data suggests that while operating profitability improved significantly after 2020, the subsequent decline towards 2025, combined with share price fluctuations, influenced the price to operating profit ratio notably. This may reflect shifts in market expectations or operational challenges faced in the later period.

The analysis of the financial metrics reveals several key trends over the examined periods.

Share Price

The share price exhibited fluctuations over the timeline. Initially, it increased from 93.53 US$ to a peak of 110.78 US$ in the following year. Subsequently, it declined to 97.95 US$ and then slightly recovered to 105.57 US$, before experiencing a steady downward trajectory to 98.26 US$ and finally 84.78 US$. This indicates some volatility with a general declining trend in recent years.

Sales Per Share

Sales per share demonstrated a consistent upward trend throughout the periods analyzed. Starting at 20.04 US$, it rose steadily each year, reaching 32.7 US$ in the most recent period. This shows strong growth in sales generated per share despite fluctuations in the share price.

Price to Sales Ratio (P/S)

The P/S ratio revealed a declining trend from 4.67 to 2.59 over the analysis period. This decreasing multiple suggests that the market valuation relative to sales has contracted, which may indicate either a shift in investor perception or improved sales performance contributing to increased denominator values.

Overall, the data suggests that while sales per share have consistently increased, the share price has not followed the same pace and has declined in more recent years, reflected also by the falling P/S ratio. This disparity might imply market adjustments or changing expectations regarding growth or profitability.

The analysis of the financial data over the six-year period reveals several noteworthy trends with respect to the share price and book value per share (BVPS) of the company.

Share Price (US$)

The share price experienced initial growth from 93.53 in September 2020 to a peak of 110.78 in October 2021. Subsequently, it declined to 97.95 in October 2022, showed a moderate recovery to 105.57 in October 2023, then decreased again to 98.26 in September 2024. The most recent value in September 2025 registers the lowest point in the period at 84.78. Overall, the share price displays a pattern of volatility with fluctuations and an overall declining trend in the latter years.

Book Value Per Share (BVPS) (US$)

The book value per share remains negative throughout the period, indicating potentially negative shareholders' equity or accumulated losses. The value shows some volatility: starting at -6.65 in September 2020, it improved to -4.54 in October 2021, suggesting a temporary strengthening of equity position. However, BVPS deteriorated substantially to -7.59 in October 2022, followed by slight recoveries to -7.03 in October 2023 and -6.57 in September 2024, before declining again to -7.12 in September 2025. These fluctuations suggest ongoing challenges in maintaining positive net asset value per share.

Price-to-Book Value Ratio (P/BV)

There is no available data to calculate or assess the P/BV ratio. Given the consistently negative book value per share, the calculation of this ratio would not yield meaningful insights using traditional interpretations.

In summary, the data indicates a fluctuating but generally declining trend in share price in recent years, coupled with persistently negative book value per share. This combination points to underlying challenges in net asset value and market valuation stability. The absence of P/BV ratio data further complicates valuation analysis using book value measures.