Starbucks - Comparative Multiple Analysis

Starbucks (Comparative Multiple Analysis)

Home Comparative Index Starbucks

►Summary | Profile | News | Chart | SWOT | Cash Flow | Comps | Buffett | WACC

Link to services page

placeholder_large_analysis.png

Improve your investment analysis with by seeing the Starbucks's Discounted Cash Flow analysis, Starbucks's Warren Buffet analysis, and Starbucks's Weighted Average Cost of Capital (WACC) Analysis.

Notes on the Comparative Multiple Analysis of Starbucks

WikiWealth compares Starbucks's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with Starbucks's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for Starbucks.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to Starbucks's debt holders.
3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples.
4. WikiWealth excludes outliers when calculating individual company multiples.

Helpful Information for Starbucks's Analysis


How does this work? The Comparative Investment Analysis determines the value of Starbucks by comparing Starbucks financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.

Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of Starbucks.

See the Starbucks cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in Starbucks.

Also, see the Starbucks's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and Starbucks's valuation conclusion for a quick summary.