SBUX
Starbucks Corporation (SBUX)
Last Price$99.6(1.5%)
Market Cap$113.9B
DCF value
$23.1
Overvalued (DCF value)
(76.8%)
Discount Rate
7.2%
Long-Term Growth Rate
2.5%
Stock quality
6/10
Good

SBUX DCF Model

Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
Sep'20 ActualOct'21 ActualOct'22 ActualOct'23 ActualSep'24 ActualSep'25 EstimateSep'26 EstimateSep'27 EstimateSep'28 EstimateSep'29 EstimateSep'30 EstimateSep'31 EstimateSep'32 EstimateSep'33 EstimateSep'34 EstimateSep'35 Terminal
% growth
23,518.0
(11.3%)
29,060.6
23.6%
32,250.3
11.0%
35,975.6
11.6%
36,176.2
0.6%
37,421.9
3.4%
39,960.4
6.8%
43,404.4
8.6%
46,588.1
7.3%
50,578.0
8.6%
54,398.4
7.6%
57,957.6
6.5%
61,163.9
5.5%
63,929.3
4.5%
66,173.7
3.5%
67,828.0
2.5%
1,561.7
6.6%
4,872.1
16.8%
4,617.8
14.3%
5,870.8
16.3%
5,408.8
15.0%
5,487.1
14.7%
5,859.3
14.7%
6,364.3
14.7%
6,831.1
14.7%
7,416.2
14.7%
7,976.3
14.7%
8,498.2
14.7%
8,968.3
14.7%
9,373.8
14.7%
9,702.9
14.7%
9,945.5
14.7%
NOPAT
% effective tax rate
1,240.2
5.3%
3,820.2
13.1%
3,582.8
11.1%
4,482.7
12.5%
4,094.8
11.3%
4,154.1
11.1%
4,435.9
11.1%
4,818.2
11.1%
5,171.6
11.1%
5,614.5
11.1%
6,038.6
11.1%
6,433.7
11.1%
6,789.6
11.1%
7,096.6
11.1%
7,345.7
11.1%
7,529.4
11.1%
% of revenue
1,503.2
6.4%
1,524.1
5.2%
1,529.4
4.7%
1,450.3
4.0%
1,592.4
4.4%
1,643.5
4.4%
1,755.0
4.4%
1,906.2
4.4%
2,046.1
4.4%
2,221.3
4.4%
2,389.1
4.4%
2,545.4
4.4%
2,686.2
4.4%
2,807.7
4.4%
2,906.2
4.4%
2,978.9
4.4%
% of revenue
(1,483.6)
(6.3%)
(1,470.0)
(5.1%)
(1,841.3)
(5.7%)
(2,333.6)
(6.5%)
(2,777.5)
(7.7%)
(2,479.0)
(6.6%)
(2,647.2)
(6.6%)
(2,875.4)
(6.6%)
(3,086.3)
(6.6%)
(3,350.6)
(6.6%)
(3,603.7)
(6.6%)
(3,839.4)
(6.6%)
(4,051.8)
(6.6%)
(4,235.0)
(6.6%)
(4,383.7)
(6.6%)
(4,493.3)
(6.6%)
(2,676.4)
(11.4%)
(501.2)
(1.7%)
(2,133.0)
(6.6%)
(1,133.4)
(3.2%)
(1,048.8)
(2.9%)
(1,579.6)
(4.2%)
(1,686.8)
(4.2%)
(1,832.2)
(4.2%)
(1,966.6)
(4.2%)
(2,135.0)
(4.2%)
(2,296.2)
(4.2%)
(2,446.5)
(4.2%)
(2,581.8)
(4.2%)
(2,698.6)
(4.2%)
(2,793.3)
(4.2%)
(2,863.1)
(4.2%)
Free Cash Flow to Firm (FCFF)
% of revenue
(1,416.6)
(6.0%)
3,373.1
11.6%
1,137.9
3.5%
2,466.0
6.9%
1,860.9
5.1%
1,738.9
4.6%
1,856.9
4.6%
2,016.9
4.6%
2,164.8
4.6%
2,350.2
4.6%
2,527.8
4.6%
2,693.1
4.6%
2,842.1
4.6%
2,970.6
4.6%
3,074.9
4.6%
3,151.8
4.6%
% of FCFF used in calculation
55.3%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Discount period
0.50
1.50
2.50
3.50
4.50
5.50
6.50
7.50
8.50
9.50
Discount factor
0.97
0.90
0.84
0.78
0.73
0.68
0.63
0.59
0.55
0.51
Discounted FCFF (DFCFF)
929.3
1,671.8
1,693.2
1,694.5
1,715.3
1,720.2
1,708.8
1,681.5
1,638.7
1,581.6

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SBUX DCF Value

DCF Value Calculation

as of Mar 11, 2025
Sum of DFCFF
% share of EV
16.0B
32.0%
Terminal Value (TV)
66.4B
Discounted TV
% share of EV
34.1B
68.0%
Total Debt
27.3B
Shares outstanding
1,143.3M
FX rate
1.0
76.8% overvalued

Equity Value Bridge

SBUX DCF Financials

Revenue
$36.2B -> $66.2B 6.2% CAGR
Operating Income
$5,408.8M -> $9,702.9M 6.0% CAGR
FCFF
$1,860.9M -> $3,074.9M 5.2% CAGR

SBUX DCF sensitivity

DCF value
Long-term Terminal growth rate
1.5%
2.0%
2.5%
3.0%
3.5%
WACC
6.0%
$29.0
$29.0
$29.0
$29.0
$29.0
6.5%
$24.0
$27.0
$28.0
$28.0
$28.0
7.2%
$18.0
$20.0
$23.0
$26.0
$26.0
7.5%
$16.0
$18.0
$21.0
$24.0
$25.0
8.0%
$13.0
$15.0
$17.0
$19.0
$22.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
1.5%
2.0%
2.5%
3.0%
3.5%
WACC
6.0%
(71.0%)
(71.0%)
(71.0%)
(71.0%)
(71.0%)
6.5%
(76.0%)
(73.0%)
(72.0%)
(72.0%)
(72.0%)
7.2%
(82.0%)
(80.0%)
(77.0%)
(74.0%)
(74.0%)
7.5%
(84.0%)
(82.0%)
(79.0%)
(76.0%)
(75.0%)
8.0%
(87.0%)
(85.0%)
(83.0%)
(81.0%)
(78.0%)

Explore more intrinsic value tools hub for SBUX

FAQ

What is Starbucks Corporation DCF (discounted cash flow) valuation?

As of Mar 11, 2025, Starbucks Corporation's Discounted Cash Flow (DCF) valuation estimates its share price at $23.1. This suggests it may be overvalued by (76.8%) compared to its current price of around $99.6, using a WACC of 7.2% and growth rates of 2.5%.

What is Starbucks Corporation WACC?

As of Mar 11, 2025, Starbucks Corporation's Weighted Average Cost of Capital (WACC) is approximately 7.2%.

What is Starbucks Corporation Enterprise Value?

As of Mar 11, 2025, Starbucks Corporation's Enterprise Value (EV) is approximately $50.2B. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.