Starbucks Corp. (NASDAQ:SBUX)

The valuation ratios exhibit considerable fluctuation over the observed period. A general trend towards lower multiples is apparent in the later quarters, although recent periods suggest potential stabilization or even increases in some ratios. The period from December 2020 to June 2021 demonstrates a significant decline across all reported ratios, followed by periods of relative stability and subsequent shifts.

Price to Earnings (P/E)

The Price to Earnings ratio began at a high of 185.40 in December 2020, decreasing substantially to 52.55 by June 2021. It continued to decline, reaching a low of 19.34 in April 2022. From October 2022 through December 2023, the ratio fluctuated between approximately 24 and 38. More recently, the P/E ratio has increased, reaching 79.20 in July 2023 and continuing to 51.93 in September 2025. This suggests a growing investor confidence in earnings or a potential overvaluation.

Price to Operating Profit (P/OP)

Similar to the P/E ratio, the Price to Operating Profit ratio experienced a marked decrease from 98.18 in December 2020 to 22.12 in January 2022. The ratio remained relatively stable between 16 and 27 for much of 2022 and 2023. A recent upward trend is observed, with the ratio increasing from 17.45 in October 2022 to 40.07 in September 2025, mirroring the trend in the P/E ratio.

Price to Sales (P/S)

The Price to Sales ratio showed less dramatic fluctuation than the earnings-based ratios. It began at 5.32 in December 2020 and decreased to a low of 2.36 in June 2024. The ratio then experienced a slight increase, reaching 2.88 in December 2025. Overall, the P/S ratio demonstrates a general downward trend, followed by a period of stabilization and a minor increase.

Price to Book Value (P/BV)

Data for the Price to Book Value ratio is not available for any of the reported periods. Therefore, no analysis can be performed on this metric.

The observed trends suggest a period of valuation compression followed by a potential re-evaluation. The increases in P/E and P/OP ratios in the most recent quarters warrant further investigation to determine the underlying drivers, such as improved earnings expectations, changes in risk perception, or broader market conditions. The absence of P/BV data limits a complete assessment of the company’s valuation relative to its net asset value.

The Price to Earnings (P/E) ratio exhibited considerable fluctuation throughout the observed period, spanning from December 2020 to December 2025. Initially, the ratio demonstrated a significant decline, followed by periods of relative stability and subsequent increases. A detailed examination reveals distinct phases in its behavior.

Initial Decline (Dec 2020 - Jun 2021)

The P/E ratio began at a high of 185.40 in December 2020 and experienced a substantial decrease, falling to 52.55 by June 2021. This decline coincided with a notable increase in Earnings Per Share (EPS), suggesting that earnings growth was not fully reflected in the share price at the beginning of the period, but subsequently began to be priced in.

Period of Stability & Increase (Jun 2021 - Oct 2022)

Following the initial decline, the P/E ratio stabilized within a range of approximately 23 to 37 for several quarters. A slight upward trend was observed from July 2022 to October 2022, reaching 34.26. This period suggests a more balanced relationship between share price and earnings.

Fluctuation and Subsequent Increase (Oct 2022 - Sep 2025)

From October 2022 onwards, the P/E ratio displayed increased volatility. It decreased to a low of 19.34 in April 2022, then increased to 37.77 in January 2023. A subsequent decline occurred, reaching 21.14 in June 2024, before rising again to 29.62 in September 2024. The final quarters of the period show a marked increase, culminating in a P/E ratio of 79.20 in December 2025. This final increase occurred despite a decrease in EPS, indicating a potentially significant shift in investor sentiment or expectations.

Correlation with EPS

Generally, an inverse relationship between the P/E ratio and EPS is observable. Periods of increasing EPS often corresponded with decreasing P/E ratios, and vice versa. However, this relationship was not always consistent, particularly in the later stages of the observed period, suggesting factors beyond earnings were influencing the share price.

In summary, the P/E ratio demonstrated a complex pattern over the analyzed timeframe. While initially responsive to earnings growth, the ratio became increasingly influenced by other market dynamics in the later periods, culminating in a substantial increase despite declining earnings per share.

The Price to Operating Profit (P/OP) ratio exhibited a significant degree of fluctuation over the observed period, spanning from December 2020 to September 2025. Initially high, the ratio demonstrated a marked decline before stabilizing and then increasing again towards the end of the period. A detailed examination reveals distinct phases in its behavior.

Initial Decline (Dec 2020 - Jun 2021)

The P/OP ratio began at 98.18 in December 2020 and experienced a substantial decrease, falling to 37.64 by June 2021. This decline coincided with an increase in share price and a more rapid increase in operating profit per share. This suggests that while the company’s profitability was improving, the market’s valuation, relative to those profits, was decreasing.

Period of Stabilization and Moderate Increase (Jul 2021 - Oct 2022)

From July 2021 through October 2022, the P/OP ratio fluctuated within a relatively narrow range, between 16.72 and 26.68. While some volatility was present, the ratio generally trended upwards during this period. Operating profit per share remained relatively stable, while the share price experienced both increases and decreases, contributing to the observed fluctuations in the P/OP ratio.

Recent Increase (Jan 2023 - Sep 2025)

Beginning in January 2023, the P/OP ratio began a more pronounced upward trend, rising from 26.73 to 40.07 by September 2025. This increase occurred despite a decline in operating profit per share during the latter part of the period. The share price experienced a corresponding increase, driving the overall rise in the P/OP ratio. The most recent values indicate a higher valuation relative to operating profit than earlier in the observed timeframe.

Overall, the P/OP ratio demonstrates a complex pattern. The initial decline suggests a period of increasing efficiency or market correction. The subsequent stabilization and moderate increase indicate a period of relative equilibrium. The recent increase, coupled with declining operating profit per share, warrants further investigation to determine the underlying drivers of market valuation.

Key Observations

The ratio’s sensitivity to changes in both share price and operating profit per share is evident throughout the period. Periods of significant change in either variable resulted in corresponding shifts in the P/OP ratio. The recent trend suggests that market sentiment may be playing a larger role in valuation, potentially outweighing the impact of operating performance.

The Price-to-Sales (P/S) ratio exhibited considerable fluctuation over the analyzed period, spanning from December 2020 to June 2025. Initially, the ratio demonstrated an increasing trend, followed by a period of decline and subsequent stabilization with renewed volatility. A detailed examination reveals distinct phases in the ratio’s behavior.

Initial Trend (Dec 2020 – Jun 2021)

The P/S ratio began at 5.32 in December 2020 and increased to 5.74 in March 2021. A slight decrease was observed in June 2021, settling at 5.48. This initial period suggests a growing investor confidence relative to sales during this timeframe.

Decline and Low Point (Jul 2021 – Apr 2022)

A significant downward trend commenced in October 2021, with the P/S ratio falling from 4.47 to a low of 2.72 in April 2022. This decline coincided with a period of share price weakness relative to sales. The most substantial decrease occurred between January 2022 and April 2022.

Recovery and Stabilization (May 2022 – Mar 2023)

Following the low in April 2022, the P/S ratio experienced a recovery, reaching 3.81 by March 2023. This indicates a renewed investor willingness to pay a premium for each dollar of sales. However, the recovery was not linear, with fluctuations observed throughout this period.

Recent Volatility (Apr 2023 – Jun 2025)

From April 2023 onwards, the P/S ratio demonstrated increased volatility. It decreased to 2.59 by September 2025, after peaking at 3.86 in April 2023. The ratio ended the period at 2.88 in June 2025. This recent behavior suggests increased uncertainty or changing investor sentiment.

Overall, the P/S ratio’s trajectory reflects a dynamic relationship between share price and sales. The initial increase, subsequent decline, partial recovery, and recent volatility suggest that investor perception of the company’s valuation relative to its sales has undergone several shifts during the analyzed period. The ratio’s recent fluctuations warrant further investigation to determine the underlying drivers of these changes.

The Price to Book Value (P/BV) ratio exhibits a fluctuating pattern over the observed period. Initially, the ratio is unavailable for the first three reporting dates. From January 2022 through December 2023, the P/BV ratio generally decreased, followed by a period of volatility and a slight upward trend in the most recent quarters.

Initial Period (Jan 2022 - Dec 2023)

The P/BV ratio demonstrates a consistent decline from January 2022 to December 2023. This suggests that the market value of the equity relative to its book value was decreasing during this timeframe. The ratio moved from a negative value to a more negative value, indicating a widening gap between market perception and the accounting value of net assets.

Volatility and Recent Trend (Jan 2024 - Jun 2025)

Beginning in January 2024, the P/BV ratio experiences increased volatility. While there are fluctuations, a slight upward trend is observable in the most recent reporting periods. The ratio moved from a negative value to a less negative value, suggesting a potential shift in investor sentiment or a change in the company’s financial position relative to its book value. However, the ratio remains negative throughout the entire observed period.

The consistently negative P/BV ratio throughout the period is noteworthy. A negative P/BV ratio typically indicates that the market values the company’s equity at less than its book value, which could be due to concerns about future profitability, asset quality, or overall financial health. The observed fluctuations suggest that these concerns, or the market’s assessment of them, are dynamic.