Discounted Cash Flow (DCF) Analysis Levered
Starbucks Corporation (SBUX)
$97.96
-1.19 (-1.20%)
All numbers are in Millions, Currency in USD
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 | 24,719.50 | 26,508.60 | 23,518 | 29,060.60 | 32,250.30 | 34,709.34 | 37,355.89 | 40,204.23 | 43,269.75 | 46,569.01 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 11,937.80 | 5,047 | 1,597.80 | 5,989.10 | 4,397.30 | 7,522.90 | 8,096.52 | 8,713.87 | 9,378.29 | 10,093.37 |
| 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 | 9,961.40 | 3,240.40 | 114.20 | 4,519.10 | 2,556 | 5,309.38 | 5,714.21 | 6,149.91 | 6,618.83 | 7,123.51 |
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 | 24,719.50 | 26,508.60 | 23,518 | 29,060.60 | 32,250.30 | 34,709.34 | 37,355.89 | 40,204.23 | 43,269.75 | 46,569.01 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 11,937.80 | 5,047 | 1,597.80 | 5,989.10 | 4,397.30 | 7,522.90 | 8,096.52 | 8,713.87 | 9,378.29 | 10,093.37 |
| 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 | 9,961.40 | 3,240.40 | 114.20 | 4,519.10 | 2,556 | 5,309.38 | 5,714.21 | 6,149.91 | 6,618.83 | 7,123.51 |
| WACC | ||||||||||
| PV LFCF | 4,327.96 | 4,351.21 | 4,374.57 | 4,398.06 | 4,421.68 | |||||
| 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 |