Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Starbucks Corp. (NASDAQ:SBUX)

Common Stock Valuation Ratios (Price Multiples)

Beginner level

Current Valuation Ratios

Starbucks Corp., current price multiples

Microsoft Excel LibreOffice Calc
Starbucks Corp. Booking Holdings Inc. McDonald’s Corp. Travel & Leisure Consumer Services
Selected Financial Data
Current share price (P) $90.80
No. shares of common stock outstanding 1,169,000,000
Growth rate (g) 25.98%
 
Earnings per share (EPS) $3.08
Next year expected EPS $3.88
Operating profit per share $3.49
Sales per share $22.68
Book value per share (BVPS) $-5.33
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 29.49 15.35 28.24 24.22 43.83
Price to next year expected earnings 23.41 11.24 21.65 13.35 38.51
Price-earnings-growth (PEG) 1.14 0.42 0.93 0.30 3.17
Price to operating profit (P/OP) 26.03 13.97 18.76 18.98 28.19
Price to sales (P/S) 4.00 4.96 8.07 5.60 2.21

Based on: 10-K (filing date: 2019-11-15).

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Starbucks Corp., historical price multiples

Microsoft Excel LibreOffice Calc
Sep 29, 2019 Sep 30, 2018 Oct 1, 2017 Oct 2, 2016 Sep 27, 2015 Sep 28, 2014
Price to earnings (P/E) 27.63 18.71 28.08 28.81 32.88 28.27
Price to operating profit (P/OP) 24.39 21.78 19.59 19.46 25.18 18.97
Price to sales (P/S) 3.75 3.42 3.62 3.81 4.73 3.55
Price to book value (P/BV) 72.30 14.86 13.79 15.59 11.09

Based on: 10-K (filing date: 2019-11-15), 10-K (filing date: 2018-11-16), 10-K (filing date: 2017-11-17), 10-K (filing date: 2016-11-18), 10-K (filing date: 2015-11-12), 10-K (filing date: 2014-11-14).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Starbucks Corp.’s P/E ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Starbucks Corp.’s P/OP ratio increased from 2017 to 2018 and from 2018 to 2019.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Starbucks Corp.’s P/S ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Starbucks Corp.’s P/BV ratio increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.

Price to Earnings (P/E)

Starbucks Corp., historical P/E calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 29, 2019 Sep 30, 2018 Oct 1, 2017 Oct 2, 2016 Sep 27, 2015 Sep 28, 2014
No. shares of common stock outstanding1 1,181,000,000 1,240,600,000 1,422,800,000 1,455,400,000 1,484,800,000 1,496,600,000
Selected Financial Data (US$)
Net earnings attributable to Starbucks (in thousands) 3,599,200  4,518,300  2,884,700  2,817,700  2,757,400  2,068,100 
Earnings per share (EPS)2 3.05 3.64 2.03 1.94 1.86 1.38
Share price1, 3 84.21 68.16 56.93 55.77 61.07 39.06
Valuation Ratio
P/E ratio4 27.63 18.71 28.08 28.81 32.88 28.27
Benchmarks
P/E Ratio, Competitors5
Booking Holdings Inc. 14.16 21.46 39.30 37.59 24.03
McDonald’s Corp. 25.99 23.66 24.95 22.55 23.56
P/E Ratio, Sector
Travel & Leisure 22.43 21.50 29.04 27.71 26.30
P/E Ratio, Industry
Consumer Services 32.56 29.96 23.68 25.70 27.64

Based on: 10-K (filing date: 2019-11-15), 10-K (filing date: 2018-11-16), 10-K (filing date: 2017-11-17), 10-K (filing date: 2016-11-18), 10-K (filing date: 2015-11-12), 10-K (filing date: 2014-11-14).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
EPS = Net earnings attributable to Starbucks ÷ No. shares of common stock outstanding
= 3,599,200,000 ÷ 1,181,000,000 = 3.05

3 Closing price as at the filing date of Starbucks Corp.’s Annual Report.

4 2019 Calculation
P/E ratio = Share price ÷ EPS
= 84.21 ÷ 3.05 = 27.63

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Starbucks Corp.’s P/E ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Price to Operating Profit (P/OP)

Starbucks Corp., historical P/OP calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 29, 2019 Sep 30, 2018 Oct 1, 2017 Oct 2, 2016 Sep 27, 2015 Sep 28, 2014
No. shares of common stock outstanding1 1,181,000,000 1,240,600,000 1,422,800,000 1,455,400,000 1,484,800,000 1,496,600,000
Selected Financial Data (US$)
Operating income (in thousands) 4,077,900  3,883,300  4,134,700  4,171,900  3,601,000  3,081,100 
Operating profit per share2 3.45 3.13 2.91 2.87 2.43 2.06
Share price1, 3 84.21 68.16 56.93 55.77 61.07 39.06
Valuation Ratio
P/OP ratio4 24.39 21.78 19.59 19.46 25.18 18.97
Benchmarks
P/OP Ratio, Competitors5
Booking Holdings Inc. 12.89 16.06 20.27 27.61 18.81
McDonald’s Corp. 17.27 15.89 13.56 13.65 14.94
P/OP Ratio, Sector
Travel & Leisure 17.57 17.21 16.60 18.02 18.47
P/OP Ratio, Industry
Consumer Services 20.93 18.87 18.08 15.67 15.14

Based on: 10-K (filing date: 2019-11-15), 10-K (filing date: 2018-11-16), 10-K (filing date: 2017-11-17), 10-K (filing date: 2016-11-18), 10-K (filing date: 2015-11-12), 10-K (filing date: 2014-11-14).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 4,077,900,000 ÷ 1,181,000,000 = 3.45

3 Closing price as at the filing date of Starbucks Corp.’s Annual Report.

4 2019 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 84.21 ÷ 3.45 = 24.39

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Starbucks Corp.’s P/OP ratio increased from 2017 to 2018 and from 2018 to 2019.

Price to Sales (P/S)

Starbucks Corp., historical P/S calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 29, 2019 Sep 30, 2018 Oct 1, 2017 Oct 2, 2016 Sep 27, 2015 Sep 28, 2014
No. shares of common stock outstanding1 1,181,000,000 1,240,600,000 1,422,800,000 1,455,400,000 1,484,800,000 1,496,600,000
Selected Financial Data (US$)
Net revenues (in thousands) 26,508,600  24,719,500  22,386,800  21,315,900  19,162,700  16,447,800 
Sales per share2 22.45 19.93 15.73 14.65 12.91 10.99
Share price1, 3 84.21 68.16 56.93 55.77 61.07 39.06
Valuation Ratio
P/S ratio4 3.75 3.42 3.62 3.81 4.73 3.55
Benchmarks
P/S Ratio, Competitors5
Booking Holdings Inc. 4.57 5.91 7.25 7.47 6.65
McDonald’s Corp. 7.43 6.67 5.68 4.29 4.20
P/S Ratio, Sector
Travel & Leisure 5.19 5.15 5.23 4.71 4.81
P/S Ratio, Industry
Consumer Services 1.64 1.52 1.51 1.32 1.29

Based on: 10-K (filing date: 2019-11-15), 10-K (filing date: 2018-11-16), 10-K (filing date: 2017-11-17), 10-K (filing date: 2016-11-18), 10-K (filing date: 2015-11-12), 10-K (filing date: 2014-11-14).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
Sales per share = Net revenues ÷ No. shares of common stock outstanding
= 26,508,600,000 ÷ 1,181,000,000 = 22.45

3 Closing price as at the filing date of Starbucks Corp.’s Annual Report.

4 2019 Calculation
P/S ratio = Share price ÷ Sales per share
= 84.21 ÷ 22.45 = 3.75

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Starbucks Corp.’s P/S ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

Price to Book Value (P/BV)

Starbucks Corp., historical P/BV calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 29, 2019 Sep 30, 2018 Oct 1, 2017 Oct 2, 2016 Sep 27, 2015 Sep 28, 2014
No. shares of common stock outstanding1 1,181,000,000 1,240,600,000 1,422,800,000 1,455,400,000 1,484,800,000 1,496,600,000
Selected Financial Data (US$)
Shareholders’ equity (deficit) (in thousands) (6,232,200) 1,169,500  5,450,100  5,884,000  5,818,000  5,272,000 
Book value per share (BVPS)2 -5.28 0.94 3.83 4.04 3.92 3.52
Share price1, 3 84.21 68.16 56.93 55.77 61.07 39.06
Valuation Ratio
P/BV ratio4 72.30 14.86 13.79 15.59 11.09
Benchmarks
P/BV Ratio, Competitors5
Booking Holdings Inc. 11.61 9.77 8.17 8.17 6.97
McDonald’s Corp. 15.06
P/BV Ratio, Sector
Travel & Leisure 84.02 22.51 19.79 11.92
P/BV Ratio, Industry
Consumer Services 6.78 6.39 6.46 5.50 5.54

Based on: 10-K (filing date: 2019-11-15), 10-K (filing date: 2018-11-16), 10-K (filing date: 2017-11-17), 10-K (filing date: 2016-11-18), 10-K (filing date: 2015-11-12), 10-K (filing date: 2014-11-14).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
BVPS = Shareholders’ equity (deficit) ÷ No. shares of common stock outstanding
= -6,232,200,000 ÷ 1,181,000,000 = -5.28

3 Closing price as at the filing date of Starbucks Corp.’s Annual Report.

4 2019 Calculation
P/BV ratio = Share price ÷ BVPS
= 84.21 ÷ -5.28 =

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Starbucks Corp.’s P/BV ratio increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.