Published on 23 Apr 2024 on Simply Wall St. via Yahoo Finance
Calculating The Intrinsic Value Of Starbucks Corporation (NASDAQ:SBUX)
Key Insights
Starbucks' estimated fair value is US$108 based on 2 Stage Free Cash Flow to EquityStarbucks' US$88.18 share price indicates it is trading at similar levels as its fair value estimate The US$104 analyst price target for SBUX is 3.9% less than our estimate of fair value
In this article we are going to estimate the intrinsic value of Starbucks Corporation (NASDAQ:SBUX) by taking the forecast future cash flows of the company and discounting them back to today's value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. Models like these may appear beyond the comprehension of a lay person, but they're fairly easy to follow.