Stock Analysis on Net

Starbucks Corp. (NASDAQ:SBUX)

Common Stock Valuation Ratios (Price Multiples) 

Microsoft Excel

Current Valuation Ratios

Starbucks Corp., current price multiples

Microsoft Excel
Starbucks Corp. Airbnb Inc. Booking Holdings Inc. Chipotle Mexican Grill Inc. McDonald’s Corp. Consumer Services Consumer Discretionary
Selected Financial Data
Current share price (P) $78.87
No. shares of common stock outstanding 1,132,700,000
Growth rate (g) 116.35%
 
Earnings per share (EPS) $3.64
Next year expected EPS $7.88
Operating profit per share $5.18
Sales per share $31.76
Book value per share (BVPS) $-7.06
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 21.66 19.42 30.02 70.45 21.96 25.49 33.62
Price to next year expected earnings 10.01 25.28 19.74 54.69 27.60 27.65
Price-earnings-growth (PEG) 0.19 0.58 2.45 1.56
Price to operating profit (P/OP) 15.22 61.29 22.07 55.57 15.97 22.09 29.17
Price to sales (P/S) 2.48 9.38 6.03 8.77 7.30 5.69 2.64

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

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
Oct 1, 2023 Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018
Price to earnings (P/E) 29.09 34.26 30.95 118.26 27.63 18.71
Price to operating profit (P/OP) 20.44 24.35 26.68 70.29 24.39 21.78
Price to sales (P/S) 3.34 3.49 4.47 4.67 3.75 3.42
Price to book value (P/BV) 72.30

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).

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. P/E ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
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. P/OP ratio decreased from 2021 to 2022 and from 2022 to 2023.
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. P/S ratio decreased from 2021 to 2022 and from 2022 to 2023.

Price to Earnings (P/E)

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

Microsoft Excel
Oct 1, 2023 Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018
No. shares of common stock outstanding1 1,136,700,000 1,147,800,000 1,173,200,000 1,173,700,000 1,181,000,000 1,240,600,000
Selected Financial Data (US$)
Net earnings attributable to Starbucks (in thousands) 4,124,500 3,281,600 4,199,300 928,300 3,599,200 4,518,300
Earnings per share (EPS)2 3.63 2.86 3.58 0.79 3.05 3.64
Share price1, 3 105.57 97.95 110.78 93.53 84.21 68.16
Valuation Ratio
P/E ratio4 29.09 34.26 30.95 118.26 27.63 18.71
Benchmarks
P/E Ratio, Competitors5
Airbnb Inc. 20.59 44.53
Booking Holdings Inc. 31.09 29.87 86.68 1,696.44 14.16
Chipotle Mexican Grill Inc. 58.48 49.37 67.03 122.20 67.72
McDonald’s Corp. 25.23 31.22 24.15 33.31 25.99
P/E Ratio, Sector
Consumer Services 27.84 34.32 42.14 360.31 23.50
P/E Ratio, Industry
Consumer Discretionary 33.22 45.12 38.95 72.79 39.89

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 Data adjusted for splits and stock dividends.

2 2023 Calculation
EPS = Net earnings attributable to Starbucks ÷ No. shares of common stock outstanding
= 4,124,500,000 ÷ 1,136,700,000 = 3.63

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

4 2023 Calculation
P/E ratio = Share price ÷ EPS
= 105.57 ÷ 3.63 = 29.09

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. P/E ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Price to Operating Profit (P/OP)

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

Microsoft Excel
Oct 1, 2023 Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018
No. shares of common stock outstanding1 1,136,700,000 1,147,800,000 1,173,200,000 1,173,700,000 1,181,000,000 1,240,600,000
Selected Financial Data (US$)
Operating income (in thousands) 5,870,800 4,617,800 4,872,100 1,561,700 4,077,900 3,883,300
Operating profit per share2 5.16 4.02 4.15 1.33 3.45 3.13
Share price1, 3 105.57 97.95 110.78 93.53 84.21 68.16
Valuation Ratio
P/OP ratio4 20.44 24.35 26.68 70.29 24.39 21.78
Benchmarks
P/OP Ratio, Competitors5
Airbnb Inc. 65.01 46.78 232.24
Booking Holdings Inc. 22.85 17.91 40.46 12.89
Chipotle Mexican Grill Inc. 46.13 38.25 54.38 149.82 53.42
McDonald’s Corp. 18.35 20.58 17.59 21.51 17.27
P/OP Ratio, Sector
Consumer Services 24.12 23.82 29.36 108.27 18.41
P/OP Ratio, Industry
Consumer Discretionary 28.83 26.92 40.71 58.48 30.81

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 Data adjusted for splits and stock dividends.

2 2023 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 5,870,800,000 ÷ 1,136,700,000 = 5.16

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

4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 105.57 ÷ 5.16 = 20.44

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. P/OP ratio decreased from 2021 to 2022 and from 2022 to 2023.

Price to Sales (P/S)

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

Microsoft Excel
Oct 1, 2023 Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018
No. shares of common stock outstanding1 1,136,700,000 1,147,800,000 1,173,200,000 1,173,700,000 1,181,000,000 1,240,600,000
Selected Financial Data (US$)
Net revenues (in thousands) 35,975,600 32,250,300 29,060,600 23,518,000 26,508,600 24,719,500
Sales per share2 31.65 28.10 24.77 20.04 22.45 19.93
Share price1, 3 105.57 97.95 110.78 93.53 84.21 68.16
Valuation Ratio
P/S ratio4 3.34 3.49 4.47 4.67 3.75 3.42
Benchmarks
P/S Ratio, Competitors5
Airbnb Inc. 9.95 10.04 16.64 37.16
Booking Holdings Inc. 6.24 5.35 9.22 14.73 4.57
Chipotle Mexican Grill Inc. 7.28 5.14 5.80 7.26 4.24
McDonald’s Corp. 8.38 8.32 7.85 8.20 7.43
P/S Ratio, Sector
Consumer Services 6.21 5.87 7.25 9.11 5.11
P/S Ratio, Industry
Consumer Discretionary 2.61 2.26 3.55 3.74 2.31

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 Data adjusted for splits and stock dividends.

2 2023 Calculation
Sales per share = Net revenues ÷ No. shares of common stock outstanding
= 35,975,600,000 ÷ 1,136,700,000 = 31.65

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

4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= 105.57 ÷ 31.65 = 3.34

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. P/S ratio decreased from 2021 to 2022 and from 2022 to 2023.

Price to Book Value (P/BV)

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

Microsoft Excel
Oct 1, 2023 Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018
No. shares of common stock outstanding1 1,136,700,000 1,147,800,000 1,173,200,000 1,173,700,000 1,181,000,000 1,240,600,000
Selected Financial Data (US$)
Shareholders’ equity (deficit) (in thousands) (7,994,800) (8,706,600) (5,321,200) (7,805,100) (6,232,200) 1,169,500
Book value per share (BVPS)2 -7.03 -7.59 -4.54 -6.65 -5.28 0.94
Share price1, 3 105.57 97.95 110.78 93.53 84.21 68.16
Valuation Ratio
P/BV ratio4 72.30
Benchmarks
P/BV Ratio, Competitors5
Airbnb Inc. 12.09 15.16 20.88 43.27
Booking Holdings Inc. 32.84 16.35 20.46 11.61
Chipotle Mexican Grill Inc. 23.47 18.74 19.05 21.52 14.09
McDonald’s Corp.
P/BV Ratio, Sector
Consumer Services 167.21
P/BV Ratio, Industry
Consumer Discretionary 10.10 9.52 13.32 18.12 13.48

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 Data adjusted for splits and stock dividends.

2 2023 Calculation
BVPS = Shareholders’ equity (deficit) ÷ No. shares of common stock outstanding
= -7,994,800,000 ÷ 1,136,700,000 = -7.03

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

4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 105.57 ÷ -7.03 =

5 Click competitor name to see calculations.