Starbucks Corporation

Valuation Analysis

About the Company

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, Washin

Starbucks Corporation Stock at a Glance

Starbucks Corporation (SBUX) is currently trading at $103.04 with a market capitalization of $117.4B. The trailing P/E ratio stands at 78.66x, with a forward P/E of 34.22x. The 52-week range spans from $77.99 to $108.88; the current price is 5.4% below the yearly high. Year-over-year revenue growth stands at +8.8%. The net profit margin stands at 3.89%.

💰 Dividend

Starbucks Corporation pays an annual dividend of $2.48 per share, representing a yield of 2.41%. The payout ratio stands at 187.79%. The elevated payout ratio reflects a mature dividend policy.

📊 Analyst Rating

32 analysts rate Starbucks Corporation (SBUX) on consensus: Buy. The average price target is $106.25, implying +3.12% from the current price. Analyst price targets range from $81.00 to $137.00.

Starbucks Corporation: The Investment Case in Detail

Starbucks Corporation (SBUX) operates in the Consumer Cyclical — specifically Restaurants — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Earnings growth of 32.6% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base.

The Bear Case

With a net margin of just 3.89%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss. A trailing P/E above 50 combined with revenue growth below 20% is a dangerous combination — the market is paying a steep growth multiple for what is, by the data, only moderately fast expansion. Our valuation screen flags the stock as overvalued — current multiples imply the business needs to deliver well above its recent trajectory to justify the price.

Valuation in Context

The PEG ratio at 1.37 sits in the reasonable zone — the price tag is roughly aligned with the company's growth profile, neither punishing nor euphoric. The EV/EBITDA multiple of 25.98x reflects rich expectations — historically, multiples at this level have proven hard to maintain for more than a few quarters.

What to Watch Next

• The forward P/E of 34.22x is meaningfully below the trailing 78.66x — analysts expect earnings to step up; the next earnings release is the test.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to relatively defensive market behavior.

Trading Data

💵 Dividend Info

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