Starbucks Corporation (SBUX) DCF Valuation
Two independent models estimate Starbucks Corporation's fair value between $31.83 (conservative case) and $46.83 (analyst consensus).
What would today's price require?
$98.87 is justified only if free cash flow grows about +17.8% a year for the next decade — faster than the company has actually grown.
Current Price
$98.87
Fair-Value Range
$31.83 – $46.83
Market-Implied Growth
+17.8%/yr
vs +2.0% 5Y actual
SBUX DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $3.0B · 1.14B shares · net debt $12.9B
Estimated Fair Value
$31.83
-67.8% vs $98.87
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $98.87; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $42.29 | $45.04 | $48.28 | $52.18 | $56.94 |
| 9.0% | $34.73 | $36.61 | $38.78 | $41.31 | $44.29 |
| 10.0% | $28.98 | $30.31 | $31.83 | $33.56 | $35.55 |
| 11.0% | $24.45 | $25.43 | $26.53 | $27.76 | $29.15 |
| 12.0% | $20.81 | $21.54 | $22.36 | $23.26 | $24.27 |
About Starbucks Corporation
Starbucks Corporation, along with its various subsidiaries, operates worldwide as a key player in roasting, marketing, and selling specialty coffee. Its business is structured into three main operating divisions: North America, International markets, and Channel Development. The company's retail outlets offer a broad assortment of coffee and tea beverages, roasted whole bean and ground coffees, single-serve options, and ready-to-drink products. Customers can also find a variety of food items, including pastries, breakfast sandwiches, and lunch selections. Furthermore, Starbucks extends its brand reach by licensing its trademarks to independently operated stores, grocery retailers, and foodservice accounts. Products are sold under well-known labels such as Starbucks, Teavana, Seattle's Best Coffee, Evolution Fresh, Ethos, Starbucks Reserve, and Princi. As of October 3, 2021, Starbucks had a significant global presence, operating 16,826 company-owned and licensed stores across North America, in addition to 17,007 similar locations internationally. The company, established in 1971, is headquartered in Seattle, Washington.
- Sector
- Consumer Cyclical
- Industry
- Restaurants
- CEO
- Brian R. Niccol