Starbucks Corp. (NASDAQ:SBUX)

Price to Earnings (P/E) Ratio

Over the observed periods, the P/E ratio shows a marked decline from an extremely elevated level of 185.4 at the end of 2020 to more moderate levels around 20-30 between 2023 and mid-2024. This suggests that the company's earnings improved relative to its stock price, leading to a more normalized valuation. However, after mid-2024, the P/E ratio increases again, reaching levels above 40 and nearly 52 by late 2025, indicating increased market optimism or expectations for future earnings growth or possibly a stock price appreciation outpacing earnings growth.

Price to Operating Profit (P/OP) Ratio

A consistent downward trend is visible from late 2020 through mid-2024, moving from a high of 98.18 to values around 14.82 to 17.45. This trend indicates improving operating profitability in relation to the stock price, suggesting either better operational efficiency or increased operating profits relative to market valuation. Similar to the P/E ratio, there is a subsequent increase from mid-2024 onward, with the ratio rising back above 26 by late 2025. This pattern may reflect changing market sentiment or shifts in operating profit expectations.

Price to Sales (P/S) Ratio

The P/S ratio declines significantly from 5.32 at the end of 2020 to approximately 2.36 by mid-2024. This steady decrease suggests that sales growth or valuation relative to sales improved, potentially due to revenue growth outpacing stock price increases or a revaluation by the market. After mid-2024, the ratio shows some volatility, with rises and dips, ending lower at 2.59 by late 2025 compared to earlier periods but above the mid-2024 low. This could indicate fluctuating market perception of revenue sustainability or valuation adjustments.

Price to Book Value (P/BV) Ratio

No data is provided for the Price to Book Value ratio across the periods, preventing analysis or identification of trends related to the company's book value.

Share Price Trends

The share price exhibited considerable volatility over the analyzed periods. Starting at $104.69, it increased to peak near $126.03 during mid-2021, before experiencing a sharp decline to approximately $74.33 in early 2022. After this low point, the price showed partial recovery reaching near $114.46 by mid-2023 but thereafter fluctuated downward, ending below $85 by late 2025. Overall, the share price demonstrated cyclical movements with a general downward tendency from mid-2023 onwards.

Earnings Per Share (EPS) Movement

EPS showed robust growth from $0.56 at the end of 2020 to a high of approximately $3.84 in early 2022, indicating significant improvement in profitability. After peaking, EPS slightly declined and then stabilized around the $3.1 to $3.8 range through mid-2024. From this point, EPS entered a steady decline, falling to $1.63 by the end of the timeline. This pattern suggests that the company experienced strong earnings growth followed by a gradual weakening of profitability in the later periods.

Price-to-Earnings (P/E) Ratio Behavior

The P/E ratio decreased substantially from an extremely high level of 185.4 in late 2020 to more modest values between 19 and 37 by late 2022, aligning with the rapid rise in EPS. However, from 2023 onward, the P/E ratio exhibited moderate fluctuations mostly between 21 and 40, with some periods reaching above 50 towards the end of the forecast. The upward swings in P/E despite declining EPS and share price suggest increasing market skepticism regarding future earnings or heightened perceived risk.

Integrated Insights

The combination of a volatile share price, an EPS peak followed by decline, and a fluctuating P/E ratio indicates changing investor sentiment and underlying operational challenges after an initial strong growth phase. The decreasing EPS in conjunction with a generally falling share price suggests pressures on profitability and market valuation. Meanwhile, the elevated and rising P/E ratios in later periods highlight potential concerns about the sustainability of earnings or growth prospects despite the share price declines.

Share Price Trend

The share price initially showed a rising trend from approximately $104.69 to a peak of $126.03 between the end of 2020 and mid-2021. Following this peak, the share price experienced a decline, reaching a low near $74.33 in early 2022. Thereafter, the price recovered with some fluctuations, moving back into the mid to high $90 range around late 2022 and early 2023. However, from early 2023 through mid-2024, the price generally declined again, with occasional rebounds. The final observed prices from late 2024 into 2025 show moderate volatility with values oscillating mostly between $84 and $100, indicating no clear sustained directional trend upward or downward toward the end of the period.

Operating Profit per Share (OPPS) Trend

Operating profit per share showed significant growth from December 2020 to early 2022, increasing from $1.07 to a high around $4.47. After this peak, OPPS remained relatively stable with a slight downward bias, fluctuating mostly between $4.00 and $5.39 through 2023 and mid-2024. Starting in late 2024, a noticeable decline begins, continuing into 2025, with OPPS tapering down to values as low as $2.58 by the end of the analyzed period. This suggests that operational profitability strengthened considerably initially but faced challenges leading to erosion in the latter periods.

Price to Operating Profit (P/OP) Ratio Trend

The P/OP ratio demonstrated a sharp decrease from very high values above 90 in late 2020 to around 16-22 in early 2022, reflecting improved operating earnings relative to the share price. Following this, the ratio fluctuated moderately between 17 and 26 through 2023 and into mid-2024, indicating some volatility in market valuation relative to operational performance. Toward the end of 2024 and into 2025, the P/OP ratio increased notably, rising to levels in the range of 26 to 33. This increase coupled with decreasing operating profits per share suggests a divergence where the market price did not fall proportionally to the decline in profitability, implying a potential revaluation or altered investor expectations during that time.

Summary of Observations

The data shows an initial period of recovery and strengthening in both share price and operating profit per share up through early 2022, after which operational profitability stabilized before entering a downtrend in late 2024. Share price movements, while initially aligned with operating profit improvements, displayed greater volatility and less consistent correlation in the later periods, particularly evident in the rising price-to-operating-profit ratio despite falling profits. These patterns may indicate market uncertainties or external factors impacting valuation apart from pure operational results.

The analysis of financial data over the presented quarterly periods reveals notable trends in share price, sales per share, and the price-to-sales (P/S) ratio.

Share Price

The share price demonstrated a fluctuating trend across the quarters. Initially, the price rose from approximately 104.69 USD to a peak near 126.03 USD within the first three quarters. Subsequently, a downward movement occurred, reaching a low of about 74.33 USD in early 2022. After this dip, the price partially recovered, showing a series of ups and downs without returning to earlier highs. Toward the end of the period, prices mostly settled between 80 and 100 USD, indicating some volatility but less pronounced surges.

Sales Per Share

Sales per share exhibited a consistent upward trajectory throughout the periods. Starting at 19.68 USD, this metric increased steadily, reflecting progressive growth in revenue generation per share. By the final quarters, sales per share approached and surpassed 32 USD, suggesting sustained business expansion or improved operational performance over time.

Price-to-Sales (P/S) Ratio

The P/S ratio showed a declining trend overall. It began relatively high at around 5.32 and fluctuated with downward pressure, dipping notably to approximately 2.36 at one point before modestly recovering to near 2.88 in the later periods. This decrease in P/S indicates that the stock price growth was outpaced by sales per share growth, potentially reflecting increasing market caution or valuation adjustments despite improving sales.

In summary, the data indicates that while the company’s sales per share steadily improved, the share price experienced volatility with an overall downward shift after initial gains. The declining price-to-sales ratio suggests that market valuation became more conservative relative to sales growth, which could imply investor cautiousness or changing market conditions impacting stock pricing.

Share Price

The share price demonstrated significant volatility over the examined periods. Starting at $104.69, it rose to a peak of $126.03 in mid-2021 before experiencing a notable decline to around $74.33 in early 2022. Subsequently, the share price showed recovery phases, reaching approximately $114.46 by April 2023. After this peak, another downward trend was observed, with values fluctuating between $75.94 and $100.41 through 2024, before declining again towards $84.78 in late 2025. This pattern indicates multiple cycles of gains and losses, influenced potentially by market conditions or company-specific factors.

Book Value Per Share (BVPS)

The book value per share remained consistently negative throughout the periods reviewed, indicating liabilities or negative equity relative to shareholders' interests. The starting value was -$6.72, showing a slight improvement to around -$4.54 during Q4 2021, but this was followed by fluctuations and a general trend towards worsening values near -$7.64 in early 2022. From then on, BVPS remained relatively stable with minor variations, typically between approximately -$7.61 and -$6.57, until a decline to about -$7.12 was recorded by mid-2025. This persistent negative BVPS suggests ongoing financial structural challenges.

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

The data for the price-to-book value ratio was not provided, restricting the ability to directly analyze this metric. Given the negative BVPS throughout the periods, calculating or interpreting P/BV ratios would present complexities and may not offer meaningful insights into valuation relative to book equity.