Starbucks Corporation (SBUX) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-66.1%

$35.17

vs $103.78 price

Levered DCF

$38.20

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

3.28

Safe zone

Rating

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	43.11×	52.54×	29.45×	25.35×	29.56×	30.9×	108.76×	29.97×
P/B	-14.2×	-12.06×	-14.88×	-13.09×	-11.16×	-24.41×	-12.91×	-17.33×
P/S	2.87×	2.63×	3.06×	2.91×	3.01×	4.47×	4.28×	4.07×
EV / EBITDA	21.8×	22.14×	18.72×	16.98×	18.92×	20×	39.19×	18.64×
Gross margin	67.7%	24.2%	26.8%	27.4%	26.0%	28.9%	21.5%	28.2%
Operating margin	9.7%	9.6%	15.0%	16.3%	14.3%	16.8%	6.6%	15.4%
Net margin	6.7%	5.0%	10.4%	11.5%	10.2%	14.5%	3.9%	13.6%
Current ratio	0.76×	0.72×	0.75×	0.78×	0.77×	1.2×	1.06×	0.92×
Debt / equity	-2.92×	-3.29×	-3.46×	-3.08×	-2.73×	-4.44×	-3.24×	-1.79×
Interest coverage	6.95×	6.6×	9.62×	10.67×	9.56×	10.37×	3.57×	12.32×
Dividend yield	2.6%	2.8%	2.3%	2.3%	2.3%	1.6%	1.9%	1.6%
Payout ratio	111.8%	149.3%	68.7%	59.0%	69.0%	50.5%	207.2%	48.9%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	-32.9%	-22.9%	-50.5%	-51.6%	-37.7%	-78.9%	-11.9%	-57.8%
Return on invested capital	11.5%	8.5%	16.4%	19.3%	16.3%	15.0%	5.0%	25.1%
Return on assets	8.9%	5.8%	12.0%	14.0%	11.7%	13.4%	3.2%	18.7%
Free cash flow yield	3.4%	2.5%	3.0%	3.5%	2.6%	3.5%	0.1%	3.0%
Earnings yield	2.3%	1.9%	3.4%	3.9%	3.4%	3.2%	0.9%	3.3%
Enterprise value	$127.7B	$121B	$133.4B	$125.7B	$118.2B	$147.1B	$121.7B	$116.5B
Net debt / EBITDA	3.2×	4.28×	3.16×	2.84×	3.36×	2.33×	6.73×	1.36×
Cash conversion cycle (days)	23	17	15	16	25	21	33	19