Discounted Cash Flow (DCF) Analysis Levered
Starbucks Corporation (SBUX)
$73.39
+1.46 (+2.03%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 22,386.80 | 24,719.50 | 26,508.60 | 23,518 | 29,060.60 | 31,236.04 | 33,574.32 | 36,087.65 | 38,789.12 | 41,692.82 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 4,174.30 | 11,937.80 | 5,047 | 1,597.80 | 5,989.10 | 7,083.17 | 7,613.40 | 8,183.33 | 8,795.93 | 9,454.38 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -1,519.40 | -1,976.40 | -1,806.60 | -1,483.60 | -1,470 | -2,059.34 | -2,213.50 | -2,379.20 | -2,557.31 | -2,748.74 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 2,654.90 | 9,961.40 | 3,240.40 | 114.20 | 4,519.10 | 5,023.82 | 5,399.90 | 5,804.13 | 6,238.62 | 6,705.63 |
Weighted Average Cost Of Capital
| Share price | $ 73.39 |
|---|---|
| Beta | 0.969 |
| Diluted Shares Outstanding | 1,185.50 |
| Cost of Debt | |
| Tax Rate | 21.61 |
| After-tax Cost of Debt | 1.56% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.362 |
| Total Debt | 23,605.10 |
| Total Equity | 87,003.85 |
| Total Capital | 110,608.95 |
| Debt Weighting | 21.34 |
| Equity Weighting | 78.66 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 22,386.80 | 24,719.50 | 26,508.60 | 23,518 | 29,060.60 | 31,236.04 | 33,574.32 | 36,087.65 | 38,789.12 | 41,692.82 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 4,174.30 | 11,937.80 | 5,047 | 1,597.80 | 5,989.10 | 7,083.17 | 7,613.40 | 8,183.33 | 8,795.93 | 9,454.38 |
| Capital Expenditure | -1,519.40 | -1,976.40 | -1,806.60 | -1,483.60 | -1,470 | -2,059.34 | -2,213.50 | -2,379.20 | -2,557.31 | -2,748.74 |
| Free Cash Flow | 2,654.90 | 9,961.40 | 3,240.40 | 114.20 | 4,519.10 | 5,023.82 | 5,399.90 | 5,804.13 | 6,238.62 | 6,705.63 |
| WACC | ||||||||||
| PV LFCF | 4,734.10 | 4,795.03 | 4,856.75 | 4,919.26 | 4,982.57 | |||||
| SUM PV LFCF | 24,287.70 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.12 |
| Free cash flow (t + 1) | 6,839.74 |
| Terminal Value | 166,013.23 |
| Present Value of Terminal Value | 123,354.92 |
Intrinsic Value
| Enterprise Value | 147,642.62 |
|---|---|
| Net Debt | 17,149.40 |
| Equity Value | 130,493.22 |
| Shares Outstanding | 1,185.50 |
| Equity Value Per Share | 110.07 |