Discounted Cash Flow (DCF) Analysis Levered

Starbucks Corporation (SBUX)

$97.96

-1.19 (-1.20%)
All numbers are in Millions, Currency in USD
Stock DCF: 91.87 | 97.96 | overvalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 24,719.5026,508.6023,51829,060.6032,250.3034,709.3437,355.8940,204.2343,269.7546,569.01
Revenue (%)
Operating Cash Flow 11,937.805,0471,597.805,989.104,397.307,522.908,096.528,713.879,378.2910,093.37
Operating Cash Flow (%)
Capital Expenditure -1,976.40-1,806.60-1,483.60-1,470-1,841.30-2,213.53-2,382.31-2,563.95-2,759.45-2,969.86
Capital Expenditure (%)
Free Cash Flow 9,961.403,240.40114.204,519.102,5565,309.385,714.216,149.916,618.837,123.51

Weighted Average Cost Of Capital

Share price $ 97.96
Beta 0.945
Diluted Shares Outstanding 1,158.50
Cost of Debt
Tax Rate 22.46
After-tax Cost of Debt 1.57%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.204
Total Debt 23,804.80
Total Equity 113,486.66
Total Capital 137,291.46
Debt Weighting 17.34
Equity Weighting 82.66
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 24,719.5026,508.6023,51829,060.6032,250.3034,709.3437,355.8940,204.2343,269.7546,569.01
Operating Cash Flow 11,937.805,0471,597.805,989.104,397.307,522.908,096.528,713.879,378.2910,093.37
Capital Expenditure -1,976.40-1,806.60-1,483.60-1,470-1,841.30-2,213.53-2,382.31-2,563.95-2,759.45-2,969.86
Free Cash Flow 9,961.403,240.40114.204,519.102,5565,309.385,714.216,149.916,618.837,123.51
WACC
PV LFCF 4,327.964,351.214,374.574,398.064,421.68
SUM PV LFCF 25,066.36

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.05
Free cash flow (t + 1) 7,265.98
Terminal Value 143,880.85
Present Value of Terminal Value 102,345.71

Intrinsic Value

Enterprise Value 127,412.07
Net Debt 20,986.40
Equity Value 106,425.67
Shares Outstanding 1,158.50
Equity Value Per Share 91.87