Published on 24 May 2024 on Simply Wall St. via Yahoo Finance
Starbucks Corporation's (NASDAQ:SBUX) Intrinsic Value Is Potentially 34% Above Its Share Price
Key Insights
Using the 2 Stage Free Cash Flow to Equity, Starbucks fair value estimate is US$105Current share price of US$78.31 suggests Starbucks is potentially 26% undervalued The US$89.65 analyst price target for SBUX is 15% less than our estimate of fair value
How far off is Starbucks Corporation (NASDAQ:SBUX) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to their present value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward.