DCF Tool

SBUX

Starbucks Corp. – Coffee and Tea Manufacturing
Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. It is the worlds largest coffeehouse chain. As of November 2021, the company had 33,833 stores in 80 countries, 15,444 of which were located in the United States.
Analysis Results
Intrinsic Value $50.81
Latest Price $93.68
Relative Value 84% overvalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
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 6.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 6.6%, 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)
2023 3.07 2.85
2024 3.28 2.82
2025 3.5 2.79
2026 3.73 2.76
2027 3.97 2.73
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 69.6 billion. This corresponds to a present value of 44.3 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 13.9 billion. Adding in the terminal value gives a total present value of 58.2 billion.

There are presently 1.15 billion outstanding shares, so the intrinsic value per share is 50.81.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 7,018,700,000
Current Cash 3,182,900,000
Current Liabilities 9,151,800,000
Current Debt 1,924,000,000
Non-Cash Working Capital (NCWC) -3,392,000,000
Change in NCWC 622,000,000
EBIT 4,663,800,000
Tax Provision 948,500,000
Depreciation and Amortization 1,529,400,000
Capital Expenditure -1,841,300,000
Unlevered Free Cash Flow 3,928,597,818
Current Assets 9,756,400,000
Current Cash 6,617,900,000
Current Liabilities 8,151,400,000
Current Debt 998,900,000
Non-Cash Working Capital (NCWC) -4,014,000,000
Change in NCWC -1,530,200,000
EBIT 5,042,500,000
Tax Provision 1,156,600,000
Depreciation and Amortization 1,524,100,000
Capital Expenditure -1,470,000,000
Unlevered Free Cash Flow 2,477,681,618
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

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.