Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Starbucks Corp., current price multiples
| 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) | $92.34 | |||||||||
| No. shares of common stock outstanding | 1,136,400,000 | |||||||||
| Earnings per share (EPS) | $3.31 | |||||||||
| Operating profit per share | $4.76 | |||||||||
| Sales per share | $31.83 | |||||||||
| Book value per share (BVPS) | $-6.55 | |||||||||
| Valuation Ratios (Price Multiples) | ||||||||||
| Price to earnings (P/E) | 27.90 | 30.88 | 29.51 | 47.23 | 25.18 | 29.02 | 35.27 | |||
| Price to operating profit (P/OP) | 19.40 | 32.03 | 22.97 | 37.81 | 17.68 | 21.95 | 28.18 | |||
| Price to sales (P/S) | 2.90 | 7.36 | 7.31 | 6.40 | 7.99 | 5.91 | 3.11 | |||
Based on: 10-K (reporting date: 2024-09-29).
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
Based on: 10-K (reporting date: 2024-09-29), 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).
- Price to Earnings (P/E) Ratio
- The P/E ratio exhibited considerable volatility over the analyzed periods. It peaked sharply in 2020 at 118.26, significantly higher than in any other year, suggesting an exceptional market valuation relative to earnings during that time. Following 2020, the P/E ratio declined to a range between approximately 29.09 and 34.26 and remained relatively stable through 2023 and 2024. This pattern indicates a normalization of investor expectations and earnings growth after the 2020 anomaly.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio followed a trend similar to the P/E ratio with a notable spike in 2020 at 70.29. Before and after this peak, it stayed within a range from about 20.44 to 26.68. The decreasing trend after 2020 suggests improving operating profit margins or a more conservative market valuation relative to operating profits in subsequent years. The 2023 and 2024 figures being close to each other indicates stable valuation metrics from an operating profit perspective.
- Price to Sales (P/S) Ratio
- The P/S ratio experienced a moderate increase in 2020, climbing from 3.75 in 2019 to 4.67, indicating that market capitalization grew faster than sales during that year. From 2021 onwards, there was a gradual decline in the ratio down to 3.08 by 2024. This downward trajectory may reflect improved sales performance, a market adjustment in valuation expectations, or a combination of both factors. The continued steady decrease suggests a longer-term reassessment of the company’s valuation relative to its sales.
- Price to Book Value (P/BV) Ratio
- Data for the P/BV ratio was unavailable across all periods, precluding any analysis or conclusions regarding this valuation metric.
Price to Earnings (P/E)
Starbucks Corp., historical P/E calculation, comparison to benchmarks
| Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,133,800,000 | 1,136,700,000 | 1,147,800,000 | 1,173,200,000 | 1,173,700,000 | 1,181,000,000 | |
| Selected Financial Data (US$) | |||||||
| Net earnings attributable to Starbucks (in thousands) | 3,760,900) | 4,124,500) | 3,281,600) | 4,199,300) | 928,300) | 3,599,200) | |
| Earnings per share (EPS)2 | 3.32 | 3.63 | 2.86 | 3.58 | 0.79 | 3.05 | |
| Share price1, 3 | 98.26 | 105.57 | 97.95 | 110.78 | 93.53 | 84.21 | |
| Valuation Ratio | |||||||
| P/E ratio4 | 29.62 | 29.09 | 34.26 | 30.95 | 118.26 | 27.63 | |
| Benchmarks | |||||||
| P/E Ratio, Competitors5 | |||||||
| Airbnb Inc. | 33.58 | 20.59 | 44.53 | — | — | — | |
| Booking Holdings Inc. | 28.00 | 31.09 | 29.87 | 86.68 | 1,696.44 | — | |
| Chipotle Mexican Grill Inc. | 50.81 | 58.48 | 49.37 | 67.03 | 122.18 | — | |
| McDonald’s Corp. | 27.00 | 25.23 | 31.22 | 24.15 | 33.31 | — | |
| P/E Ratio, Sector | |||||||
| Consumer Services | 30.16 | 27.84 | 34.32 | 42.14 | 360.30 | — | |
| P/E Ratio, Industry | |||||||
| Consumer Discretionary | 38.71 | 33.07 | 44.76 | 38.75 | 72.10 | — | |
Based on: 10-K (reporting date: 2024-09-29), 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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
EPS = Net earnings attributable to Starbucks ÷ No. shares of common stock outstanding
= 3,760,900,000 ÷ 1,133,800,000 = 3.32
3 Closing price as at the filing date of Starbucks Corp. Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= 98.26 ÷ 3.32 = 29.62
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited an overall upward trend from 2019 to 2021, rising from $84.21 to a peak of $110.78 in 2021. Following this peak, there was a decline in 2022 to $97.95, a partial recovery in 2023 to $105.57, and a subsequent decrease to $98.26 in 2024. This pattern indicates some volatility with notable fluctuations after the peak in 2021.
- Earnings per Share (EPS)
- EPS showed a sharp decline in 2020, dropping from $3.05 in 2019 to $0.79, likely reflecting a significant adverse event or operational challenge during that period. The metric rebounded strongly in 2021 to $3.58, followed by a moderate decline in 2022 to $2.86. EPS then improved again in 2023 to $3.63 but saw a slight decrease in 2024 to $3.32. The overall trend reveals resilience and recovery after the 2020 downturn, with some fluctuations thereafter.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio surged dramatically in 2020 to 118.26 from 27.63 in 2019, reflecting the sharp drop in earnings in that year while the share price remained relatively stable. In 2021, the ratio normalized to 30.95, aligning closer to the pre-2020 range, before moderately rising to 34.26 in 2022. It then decreased to 29.09 in 2023 and slightly increased again to 29.62 in 2024. The elevated level in 2020 suggests market uncertainty, while the subsequent values indicate a stabilization in market valuation relative to earnings.
Price to Operating Profit (P/OP)
Starbucks Corp., historical P/OP calculation, comparison to benchmarks
| Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,133,800,000 | 1,136,700,000 | 1,147,800,000 | 1,173,200,000 | 1,173,700,000 | 1,181,000,000 | |
| Selected Financial Data (US$) | |||||||
| Operating income (in thousands) | 5,408,800) | 5,870,800) | 4,617,800) | 4,872,100) | 1,561,700) | 4,077,900) | |
| Operating profit per share2 | 4.77 | 5.16 | 4.02 | 4.15 | 1.33 | 3.45 | |
| Share price1, 3 | 98.26 | 105.57 | 97.95 | 110.78 | 93.53 | 84.21 | |
| Valuation Ratio | |||||||
| P/OP ratio4 | 20.60 | 20.44 | 24.35 | 26.68 | 70.29 | 24.39 | |
| Benchmarks | |||||||
| P/OP Ratio, Competitors5 | |||||||
| Airbnb Inc. | 34.83 | 65.01 | 46.78 | 232.24 | — | — | |
| Booking Holdings Inc. | 21.80 | 22.85 | 17.91 | 40.46 | — | — | |
| Chipotle Mexican Grill Inc. | 40.67 | 46.13 | 38.25 | 54.38 | 149.81 | — | |
| McDonald’s Corp. | 18.95 | 18.35 | 20.58 | 17.59 | 21.51 | — | |
| P/OP Ratio, Sector | |||||||
| Consumer Services | 22.82 | 24.12 | 23.82 | 29.36 | 108.27 | — | |
| P/OP Ratio, Industry | |||||||
| Consumer Discretionary | 30.92 | 28.71 | 26.77 | 40.49 | 58.11 | — | |
Based on: 10-K (reporting date: 2024-09-29), 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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 5,408,800,000 ÷ 1,133,800,000 = 4.77
3 Closing price as at the filing date of Starbucks Corp. Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 98.26 ÷ 4.77 = 20.60
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited a general upward trend from 2019 to 2021, increasing from $84.21 to a peak of $110.78. However, in 2022, the price declined to $97.95, followed by a partial recovery to $105.57 in 2023, and then a slight decrease to $98.26 in 2024. This pattern indicates some volatility after the initial growth phase, with the latest data showing a stabilization below the 2021 peak.
- Operating Profit Per Share
- Operating profit per share showed considerable fluctuation over the analyzed period. Starting at $3.45 in 2019, it sharply decreased to $1.33 in 2020, likely reflecting adverse conditions during that year. Subsequently, there was a significant recovery in 2021 to $4.15, followed by a slight decrease in 2022 to $4.02. In 2023, operating profit per share increased again to $5.16, the highest in the period, before a minor decline to $4.77 in 2024. Overall, the trend suggests resilience and growth in profitability after the 2020 downturn, with some volatility in recent years.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio began at a moderate level of 24.39 in 2019 but rose dramatically in 2020 to 70.29, reflecting the sharp drop in operating profit per share against a still relatively high share price. Following this spike, the ratio reverted closer to pre-2020 levels, falling to 26.68 in 2021 and further stabilizing around 24.35 in 2022. The ratio then declined more notably in 2023 to 20.44 and remained relatively stable in 2024 at 20.6. This pattern indicates that after the earnings shock in 2020, the market valuation relative to operating profit per share normalized and has become more conservative in valuation metrics in recent years.
Price to Sales (P/S)
Starbucks Corp., historical P/S calculation, comparison to benchmarks
| Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,133,800,000 | 1,136,700,000 | 1,147,800,000 | 1,173,200,000 | 1,173,700,000 | 1,181,000,000 | |
| Selected Financial Data (US$) | |||||||
| Net revenues (in thousands) | 36,176,200) | 35,975,600) | 32,250,300) | 29,060,600) | 23,518,000) | 26,508,600) | |
| Sales per share2 | 31.91 | 31.65 | 28.10 | 24.77 | 20.04 | 22.45 | |
| Share price1, 3 | 98.26 | 105.57 | 97.95 | 110.78 | 93.53 | 84.21 | |
| Valuation Ratio | |||||||
| P/S ratio4 | 3.08 | 3.34 | 3.49 | 4.47 | 4.67 | 3.75 | |
| Benchmarks | |||||||
| P/S Ratio, Competitors5 | |||||||
| Airbnb Inc. | 8.01 | 9.95 | 10.04 | 16.64 | 37.16 | — | |
| Booking Holdings Inc. | 6.94 | 6.24 | 5.35 | 9.22 | 14.73 | — | |
| Chipotle Mexican Grill Inc. | 6.89 | 7.28 | 5.14 | 5.80 | 7.26 | — | |
| McDonald’s Corp. | 8.56 | 8.38 | 8.32 | 7.85 | 8.20 | — | |
| P/S Ratio, Sector | |||||||
| Consumer Services | 6.14 | 6.21 | 5.87 | 7.25 | 9.11 | — | |
| P/S Ratio, Industry | |||||||
| Consumer Discretionary | 3.41 | 2.62 | 2.27 | 3.56 | 3.77 | — | |
Based on: 10-K (reporting date: 2024-09-29), 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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Sales per share = Net revenues ÷ No. shares of common stock outstanding
= 36,176,200,000 ÷ 1,133,800,000 = 31.91
3 Closing price as at the filing date of Starbucks Corp. Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= 98.26 ÷ 31.91 = 3.08
5 Click competitor name to see calculations.
- Share Price
- The share price experienced an overall upward trend from 2019 to 2021, rising from $84.21 to a peak of $110.78 in 2021. However, this was followed by a decline in 2022 to $97.95. In 2023, the price showed a moderate recovery to $105.57 before slightly decreasing again in 2024 to $98.26. This indicates some volatility with notable fluctuations after the peak in 2021.
- Sales per Share
- Sales per share initially decreased from $22.45 in 2019 to $20.04 in 2020. From 2020 onward, there was a consistent upward trajectory, reaching $24.77 in 2021, then accelerating to $28.10 in 2022, and continuing to grow to $31.65 in 2023 and $31.91 in 2024. This continuous increase suggests improving revenue generation on a per-share basis over the recent years.
- Price-to-Sales Ratio (P/S)
- The P/S ratio showed a rising trend from 3.75 in 2019 to a high of 4.67 in 2020, before gradually declining over the subsequent years to 4.47 in 2021, 3.49 in 2022, 3.34 in 2023, and finally 3.08 in 2024. This decline in the P/S ratio, alongside increasing sales per share, suggests that the share price growth has not kept pace proportionally with sales growth, indicating a potential valuation adjustment or a more conservative market view relative to sales.
- Overall Analysis
- Despite fluctuations in the share price, the consistent growth in sales per share demonstrates improved operational performance over the period analyzed. The price-to-sales ratio's peak in 2020 followed by a steady decline suggests a change in market valuation metrics, possibly reflecting adjustments in investor expectations or external market conditions impacting perceived value. The share price volatility corresponds with these valuation shifts and underlying sales improvements, indicating a dynamic market environment with increasing sales being the primary driver of intrinsic value.
Price to Book Value (P/BV)
Starbucks Corp., historical P/BV calculation, comparison to benchmarks
| Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,133,800,000 | 1,136,700,000 | 1,147,800,000 | 1,173,200,000 | 1,173,700,000 | 1,181,000,000 | |
| Selected Financial Data (US$) | |||||||
| Shareholders’ deficit (in thousands) | (7,448,900) | (7,994,800) | (8,706,600) | (5,321,200) | (7,805,100) | (6,232,200) | |
| Book value per share (BVPS)2 | -6.57 | -7.03 | -7.59 | -4.54 | -6.65 | -5.28 | |
| Share price1, 3 | 98.26 | 105.57 | 97.95 | 110.78 | 93.53 | 84.21 | |
| Valuation Ratio | |||||||
| P/BV ratio4 | — | — | — | — | — | — | |
| Benchmarks | |||||||
| P/BV Ratio, Competitors5 | |||||||
| Airbnb Inc. | 10.57 | 12.09 | 15.16 | 20.88 | 43.27 | — | |
| Booking Holdings Inc. | — | — | 32.84 | 16.35 | 20.46 | — | |
| Chipotle Mexican Grill Inc. | 21.32 | 23.47 | 18.74 | 19.05 | 21.52 | — | |
| McDonald’s Corp. | — | — | — | — | — | — | |
| P/BV Ratio, Sector | |||||||
| Consumer Services | — | — | — | 167.21 | — | — | |
| P/BV Ratio, Industry | |||||||
| Consumer Discretionary | 11.07 | 10.11 | 9.55 | 13.30 | 18.17 | — | |
Based on: 10-K (reporting date: 2024-09-29), 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).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
BVPS = Shareholders’ deficit ÷ No. shares of common stock outstanding
= -7,448,900,000 ÷ 1,133,800,000 = -6.57
3 Closing price as at the filing date of Starbucks Corp. Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= 98.26 ÷ -6.57 = —
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited an overall upward trend from 2019 through 2024, starting at $84.21 in late 2019 and peaking at $110.78 in 2021. Following that peak, the share price experienced some volatility, declining to $97.95 in 2022, followed by a modest recovery to $105.57 in 2023, and then a decrease again to $98.26 in 2024. This pattern suggests a period of growth culminating in 2021, with subsequent fluctuations possibly reflecting market or company-specific factors impacting investor sentiment.
- Book Value Per Share (BVPS)
- The book value per share consistently remained negative throughout the observed periods, ranging from -$5.28 in 2019 to -$6.57 in 2024. Despite some variation, there is no indication of a trend towards positive book value. The BVPS declined sharply to -$7.59 in 2022, followed by slight improvements in 2023 and 2024, yet it remained deeply negative. This persistent negative book value per share could be indicative of accumulated losses or significant intangible assets and liabilities influencing the company's balance sheet structure.
- Price-to-Book Value (P/BV) Ratio
- The Price-to-Book Value ratio data is missing for all periods, preventing any direct analysis of valuation metrics based on book value. Given the negative book value per share, the ratio may have limited interpretive value or may not be calculated.