SBUX

Starbucks

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee internationally. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee, tea, and other beverages, roasted whole beans … Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee internationally. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee, tea, and other beverages, roasted whole beans and ground coffees, complementary food, packaged coffees, single-serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items. The company also licenses its trademarks through licensed stores, and grocery and foodservice accounts. The company offers its products under the Starbucks Coffee, Teavana, Seattle's Best Coffee, Ethos, and Starbucks Reserve brands. Starbucks Corporation was founded in 1971 and is based in Seattle, Washington.
Market price
USD 103.48
Overvalued by 70.1%
Base value (Fade DCF (10-year growth fade)) is 70.1% below the market price · low confidence
5-year outlook: 3.2% per year · forecast
Data: Price updated 06 Nov 2026 14:48; FY2026, period ended 30 Sep 2026 from EODHD (downloaded 9 min ago). Last earnings: 29 Oct 2026
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Verdict

Looks overvalued

PriceUSD 103.48
Fair value range15.04–60.65base 30.91
Estimate reliabilityHigh
5-year outlook3.2% / yr≈ USD 120.92 in 5 yrs

Why: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.

Start with the price and fair value range, then review the data dates and assumptions below. Estimates are not predictions or investment advice.

Fade DCF (10-year growth fade)

Market price above modeled range

Showing the Fade DCF (10-year growth fade) you selected on the company card, using 5.02% growth, 3.1% terminal growth and 10.8% discount. The range varies these assumptions slightly; it is illustrative, not investment advice. Low confidence: the modelled value is far from the market price, which usually means the model does not capture this company well (for example expected growth well above its history).

Assumptions: growth 5.02%, discount rate 10.80%, terminal growth 3.10% (sector defaults). See a worked example.

Blended growth assumption: 5.0% (sector default 7.2%, own revenue history 4.1%, analyst revenue consensus 4.4%).

5-year outlook: relative outlook of about 3.2% a year (High confidence), anchored to a 7% market return and adjusted for how this company ranks against others. A ranking aid, not a prediction. See the full forecast.

Analyst consensus expects revenue growth of 4.4% a year; the growth assumption used is 5.0%.

Adjust assumptions

Show the recommended model instead

Why this model: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.

Compare models
  • Recommended: Free-cash-flow DCF — USD 31.05 (-70.0%)
  • EPS-based Gordon proxy — USD 29.59 (-71.4%)
    Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
  • DCF (trailing free cash flow) — USD 31.05 (-70.0%)
    Not used: Not chosen: Free-cash-flow DCF ranks ahead of it for this company.
  • FCFF (steady state) — USD 27.40 (-73.5%)
    Not used: Assumes only the long-run terminal growth rate from today, so it ignores the near-term growth expected.
  • EV/EBITDA (12x) — USD 45.23 (-56.3%)
    Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
  • Fade DCF (10-year growth fade) — USD 30.91 (-70.1%)
    Not used: An alternative growth path (fading over 10 years) shown for comparison; the automatic choice does not use it.
  • EV/Sales (Rule of 40) — USD 119.49 (+15.5%)
    Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
Illustrative range / share USD 15.04–60.65
Base scenario / share USD 30.91
Margin of safety (share of value) Above the bull case
Bear USD 15.04-587.9%
Base USD 30.91-234.8%
Bull USD 60.65-70.6%

Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.

Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.

Price history and fair value

1 month price change: +13.44% · USD 106.16 · Market data through 05 Nov 2026 ; dashed line is today’s model base value (USD 30.91). The fair value is today’s estimate, not what the model said in the past.

Saved price history is current through 05 Nov 2026; last refreshed 06 Nov 2026 18:14 (2 minutes ago).

07 Oct 2026Range USD 90.75 – 109.7005 Nov 2026

Latest news

Headlines provided by EODHD. Articles may mention multiple companies and are not investment recommendations.

More detail: quality, peers, price history, dividends and financials

Quality score: 72 / 100

Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.

Profitability5 of 5 years profitable20 / 20
Cash generationfree cash flow positive in 5 of 5 years20 / 20
Growthrevenue +4.1% a year12 / 20
Balance sheetnet debt 3.2x EBITDA10 / 20
MarginsEBITDA margin 15%10 / 20

Peers in Consumer Discretionary

Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.

CompanyPriceMargin of safetyP/EP/BYieldQuality
SBUX (this company) USD 103.48 -233.2% 46.8 – 2.4% 72
KGF.L Kingfisher plc GBP 3.70 45.5% 26.8 1.1 3.3% 74
BWY.L Bellway p.l.c. GBP 22.72 44.3% 13.8 0.8 3.1% 70
INCH.L Inchcape plc GBP 6.33 38.1% 8.8 1.9 4.2% 80
ZAL.DE Zalando SE EUR 27.37 36.9% 108.0 2.6 – 80
DECK Deckers Brands USD 85.74 36.4% 10.9 5.0 – 100
LULU Lululemon Athletica USD 109.52 34.7% 8.7 2.6 – 100
EXPE Expedia Group USD 268.04 30.8% 15.6 19.8 0.7% 100
BKNG Booking Holdings USD 166.20 29.9% 17.4 – 1.0% 100
Peer median 14.7 2.6

Dividends

Paid in the last 12 months: USD 2.48 per share · yield 2.40% at the current price.

YearDividends per share
2026 (so far)1.860
20252.450
20242.320
20232.160
20222.000
20211.840
Sector Consumer Discretionary
Exchange NASDAQ
Currency USD

Annual financial statement

Saved annual report · Fiscal year 2026 · EODHD annual statements · period ended 30 Sep 2026

RevenueUSD 37,910,600,000
EBITDAUSD 5,855,700,000
EBITUSD 4,372,400,000
Net incomeUSD 2,526,700,000
Free cash flowUSD 3,724,800,000
Capital expendituresUSD 1,263,600,000
DebtUSD 22,413,600,000
CashUSD 3,864,200,000
Working capitalUSD -2,442,400,000
Shares outstanding1,143,400,000
Reported dividends per shareUSD 2.4704