Starbucks Corporation (SBUX)

Valuation as at 2026-08-29 · see also the S&P 500 Most Undervalued screen

About Starbucks Corporation

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.

Source: Yahoo Finance company profile · factual description, not KashVector commentary

Starbucks Corporation SBUX

Consumer Cyclical · Restaurants

Price
$107.85
Market Cap
$122.95B
Free Cash Flow
$3.07B
Beta
0.97
P/E (TTM)
62.3x
52-Week Range
$77.99–$110.51

Starbucks Corporation's price & financial trends

Each card is labelled with its own reporting period — quarterly where Yahoo provides it for this market, annual otherwise.

Data as at 2026-08-29

Share price · last 2 years

$107.26 +13% vs 2024-08
S&P 500 $94.57$107.68$91.63$87.11$105.33$107.26 2024-082025-012025-062025-112026-042026-08

Earnings per share (diluted) Per quarter

$0.91 +86% vs Q2 '25
$0.49$0.12$0.26$0.45$0.91Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26

Free cash flow Per quarter

$1.35B +211% vs Q2 '25
$0.43B$0.93B$1.27B$0.09B$1.35BQ2 '25Q3 '25Q4 '25Q1 '26Q2 '26

Dividend per share Per quarter

$0.62 +2% vs Q2 '25
$0.61$0.61$0.62$0.62$0.62Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26

Value investing scale · Buffett · Dalio · Graham

Partial Fit
9 / 20 combined score

6 criteria had no data

See the full Buffett, Dalio & Graham breakdown for SBUX →

Intrinsic value estimate · 5-year forecast

BEAR
$38.07
vs current $107.85
-64.7% ❌ Overvalued
BASE
$86.20
vs current $107.85
-20.1% ❌ Overvalued
BULL
$130.91
vs current $107.85
+21.4% ✅ Undervalued

Assumptions used in this valuation

Every input below is either fetched live from Yahoo Finance or a documented default — nothing is hidden.

Starting free cash flow
$3.07B
Reported free cash flow (Yahoo)
Risk-free rate
4.67% ● LIVE
Live 10-yr govt bond
Beta
0.97
Direct from Yahoo
Equity risk premium
5.50%
Market-specific seed
Cost of debt
5.82%
Synthetic rating A, ICR 6.6x
Tax rate
25.00%
Estimated default
Capital structure
E 85% / D 15%
Market cap vs total debt
Projection horizon
5 years
+ terminal value beyond
BearBaseBull
5-yr FCF growth12.5%25.0%30.0%
Terminal growth2.5%2.5%2.5%
WACC (discount rate)10.12%9.12%8.12%

Cost of Equity = Risk-free rate + Beta × Equity Risk Premium = 4.67% + 0.97 × 5.50% = 9.98% · WACC = weighted by 85%/15% capital structure

These numbers come from running Starbucks Corporation's cash flows through the mechanical DCF formula and assumptions above — not from any view on the news, management, or SBUX's competitive position. What is DCF?

Want to test your own growth or discount-rate assumptions?Open the full interactive calculator, pre-filled with SBUX →

Not financial advice. DCF valuations are highly sensitive to assumptions — small changes in growth rate or discount rate produce large swings in output. This is a mechanical calculation, not a recommendation to buy, hold, or sell.

About this valuation

Computed on 2026-08-29 from Yahoo Finance data, using the same engine as the full DCF tool and the S&P 500 Most Undervalued screen. Every figure above is a point-in-time snapshot of that date — change any assumption yourself in the interactive tool for a live one.

Frequently asked questions

Is Starbucks Corporation (SBUX) undervalued?

The Base-case DCF estimates intrinsic value at $86.20 vs a price of $107.85 on 2026-08-29 — a -20.1% margin, so the Base case reads overvalued. This is a mechanical output, not advice.