DCF Tool

SBUX

Starbucks Corp. – Coffee and Tea Manufacturing
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with nearly 33,000 stores worldwide, the company is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup.
Analysis Results
Intrinsic Value $35.38
Latest Price $84.26
Relative Value 138% overvalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 3.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 3.4%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 2.46 2.27
2023 2.54 2.18
2024 2.63 2.09
2025 2.72 2.0
2026 2.81 1.91
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 47.8 billion. This corresponds to a present value of 30.1 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 10.5 billion. Adding in the terminal value gives a total present value of 40.6 billion.

There are presently 1.15 billion outstanding shares, so the intrinsic value per share is 35.38.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 19,512,800,000
Current Cash 13,235,800,000
Current Liabilities 16,302,800,000
Current Debt 1,997,800,000
Non-Cash Working Capital (NCWC) -8,028,000,000
Change in NCWC -5,544,200,000
EBIT 10,085,000,000
Tax Provision 2,313,200,000
Depreciation and Amortization 3,048,200,000
Capital Expenditure -2,940,000,000
Unlevered Free Cash Flow 2,471,563,236
Current Assets 7,806,400,000
Current Cash 4,632,100,000
Current Liabilities 7,346,800,000
Current Debt 1,688,700,000
Non-Cash Working Capital (NCWC) -2,483,800,000
Change in NCWC 788,100,000
EBIT 1,840,400,000
Tax Provision 239,700,000
Depreciation and Amortization 1,503,200,000
Capital Expenditure -1,483,600,000
Unlevered Free Cash Flow 2,269,240,604
Current Assets 5,653,900,000
Current Cash 2,757,100,000
Current Liabilities 6,168,700,000
Current Debt 0
Non-Cash Working Capital (NCWC) -3,271,900,000
Change in NCWC -1,494,000,000
EBIT 4,213,700,000
Tax Provision 871,600,000
Depreciation and Amortization 1,449,300,000
Capital Expenditure -1,806,600,000
Unlevered Free Cash Flow 1,540,076,566
Current Assets 12,494,200,000
Current Cash 8,937,800,000
Current Liabilities 5,684,200,000
Current Debt 349,900,000
Non-Cash Working Capital (NCWC) -1,777,900,000
Change in NCWC -149,700,000
EBIT 4,107,700,000
Tax Provision 1,262,000,000
Depreciation and Amortization 1,305,900,000
Capital Expenditure -1,976,400,000
Unlevered Free Cash Flow 2,390,628,477
Current Assets 5,283,400,000
Current Cash 2,690,900,000
Current Liabilities 4,220,700,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,628,200,000
Change in NCWC 21,400,000
EBIT 4,288,200,000
Tax Provision 1,432,600,000
Depreciation and Amortization 1,067,100,000
Capital Expenditure -1,519,400,000
Unlevered Free Cash Flow 2,434,422,103
Current Assets 4,760,500,000
Current Cash 2,263,200,000
Current Liabilities 4,546,900,000
Current Debt 400,000,000
Non-Cash Working Capital (NCWC) -1,649,600,000
Change in NCWC -737,400,000
EBIT 4,171,900,000
Tax Provision 1,379,700,000
Depreciation and Amortization 1,030,100,000
Capital Expenditure -1,440,300,000
Unlevered Free Cash Flow 1,653,373,874
Current Assets 4,352,700,000
Current Cash 1,611,400,000
Current Liabilities 3,653,500,000
Current Debt 0
Non-Cash Working Capital (NCWC) -912,200,000
Change in NCWC -198,400,000
EBIT 3,601,000,000
Tax Provision 1,143,700,000
Depreciation and Amortization 933,800,000
Capital Expenditure -1,303,700,000
Unlevered Free Cash Flow 1,977,495,362
Current Assets 4,168,700,000
Current Cash 1,843,800,000
Current Liabilities 3,038,700,000
Current Debt 0
Non-Cash Working Capital (NCWC) -713,800,000
Change in NCWC 2,425,900,000
EBIT 3,060,900,000
Tax Provision 1,092,000,000
Depreciation and Amortization 748,400,000
Capital Expenditure -1,160,900,000
Unlevered Free Cash Flow 4,016,445,520
Current Assets 5,471,400,000
Current Cash 3,233,800,000
Current Liabilities 5,377,300,000
Current Debt 0
Non-Cash Working Capital (NCWC) -3,139,700,000
Change in NCWC -3,092,500,000
EBIT 2,458,700,000
Tax Provision -238,700,000
Depreciation and Amortization 655,600,000
Capital Expenditure -1,151,200,000
Unlevered Free Cash Flow -1,129,400,000
Current Assets 4,199,600,000
Current Cash 2,037,000,000
Current Liabilities 2,209,800,000
Current Debt 0
Non-Cash Working Capital (NCWC) -47,200,000
Change in NCWC 284,400,000
EBIT 1,997,400,000
Tax Provision 674,400,000
Depreciation and Amortization 580,600,000
Capital Expenditure -856,200,000
Unlevered Free Cash Flow 1,352,008,090

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