Starbucks Stock: Why $65 Isn't Impossible
Starbucks stock (NASDAQ: SBUX) has had difficulty keeping up in 2025. In the last year, the S&P 500 has outpaced it by 14%, while Starbucks has declined by 14%.
Fiscal Year: October - September
Starbucks Corporation (SBUX), listed on the NASDAQ, has a market capitalization of $. As of Nov 20, 2025, the stock is trading at $83.68 per share, offering investors a clear view of its current market value. Starbucks Corporation is a prominent player in the industry sector, attracting both institutional and retail investors due to its performance and potential.
With a P/E ratio of 51.34, investors can assess the stock's valuation in comparison to its earnings. A P/E ratio is a crucial indicator for value investors, showing whether the stock is over or undervalued relative to its current earnings. Starbucks Corporation also offers a dividend yield of 2.96%, making it an attractive option for income-focused investors who seek regular dividends.
Our Discounted Cash Flow (DCF) analysis reveals that Starbucks Corporation (SBUX) may be overvalued compared to its intrinsic worth. However, to see the exact DCF fair value, please Login or Upgrade for access.
The proprietary SS Score for Starbucks Corporation is a unique metric that analyzes the company's financial health and growth potential. The score takes into account critical factors such as revenue growth, net income, free cash flow (FCF) compound annual growth rate (CAGR), the trend of shares outstanding, and the debt-to-FCF ratio. This helps investors to make a more informed decision, as an undervalued stock might still have poor financial fundamentals.
To view the detailed SS Score for Starbucks Corporation, Login or Upgrade for access.
The Price to Free Cash Flow (P/FCF) ratio for Starbucks Corporation is 38.97, offering insights into how much investors are paying for the company's free cash flow. A lower P/FCF ratio typically suggests that the stock is undervalued, while a higher ratio may indicate overvaluation.
In summary, Starbucks Corporation (SBUX) has shown consistent financial performance, as illustrated by the financial charts above, which track its revenue growth, net income, free cash flow, and shares outstanding over the past several years. These metrics provide investors with key insights into the company's past and projected future performance. Investors should use the SS Score alongside the DCF Fair Value to make better-informed decisions about whether to buy or hold the stock.
*This analysis is for informational purposes only and does not constitute investment advice. Always read the company's 10-K filings and do your own research before making any investment decisions.
Whether Starbucks Corporation (SBUX) is a good stock to buy depends on various factors, including its financial health, market conditions, and your investment strategy. Our analysis indicates that the stock may be overvalued compared to its intrinsic value. However, it is important to assess the SS Score and review the company's fundamentals before making any investment decisions.
The fair value of Starbucks Corporation (SBUX) is determined through our Discounted Cash Flow (DCF) analysis. This value represents the intrinsic worth of the stock based on its expected future cash flows. To view the specific fair value, consider subscribing to our service for complete access.
The SS Score is a proprietary financial quality metric that assesses factors such as revenue growth, net income, free cash flow growth, and debt levels. It helps investors evaluate the overall financial health of Starbucks Corporation. To access the full SS Score, consider upgrading your subscription.
Starbucks Corporation is a significant player in the industry sector, with a market capitalization of $ and a competitive P/E ratio of 51.34. Investors should compare these metrics with industry peers to gauge whether Starbucks Corporation is outperforming or underperforming within its sector.
Starbucks stock (NASDAQ: SBUX) has had difficulty keeping up in 2025. In the last year, the S&P 500 has outpaced it by 14%, while Starbucks has declined by 14%.
It's the first hint into how Mamdani – a pro-union voice who has promised New Yorkers free buses, a rent freeze and free childcare – plans to use his newfound political influence.
President Trump's trade deal with four countries in Latin America could lower prices for coffee, bananas and beef, which have been sore spots for a number of American companies.
Starbucks Workers United launched an open-ended strike in more than 40 cities Thursday on Red Cup Day, one of the chain's biggest sales days of the year. CNBC's Kate Rogers has the details.
Visitors to dozens of Starbucks stores across more than 40 cities may be greeted with picket lines today as Starbucks baristas go on strike.
Starbucks Workers United launched an open-ended strike in more than 40 cities Thursday on Red Cup Day, one of the chain's biggest sales days of the year. CNBC's Kate Roger's joins 'Squawk on the Stree...
More than 1,000 Starbucks unionized baristas launched an open-ended strike on Thursday, intensifying their push for a collective bargaining agreement over pay and other benefits at the coffee giant.
The coffee chain says union members make up only 4% of its workers.
Coffee chain's ‘Red Cup Day' marred as union says baristas at 65 stores across more than 40 cities are striking, but Starbucks says impact is only a fraction of that.
Starbucks saw a coordinated walkout by more than 1,000 unionised baristas across the United States on Thursday, aligning their open-ended strike with one of the company's busiest days of the year: Red...
Starbucks strike hits Red Cup Day as over 1,000 baristas walk out at 65 stores nationwide. Union workers are protesting stalled contract talks.
More than 1,000 Starbucks unionized baristas in over 40 U.S. cities launched an open-ended strike on Thursday, the union said, escalating their push for a collective bargaining agreement over pay and ...
Over a thousand Starbucks baristas have begun an open-ended strike, with plans to expand the action. It disrupts Red Cup Day, a major sales draw that offers customers a free reusable cup with purchase...
Starbucks Workers United launched a strike in at least 40 cities and 65 stores on the day of chain's Red Cup Day sales event. The open-ended strike, which will start with about 1,000 baristas and coul...
A panel of U.S. appeals court judges on Wednesday voiced concerns that the National Labor Relations Board has gone too far in policing employers' restrictions on workers wearing union apparel, grappli...
RIYADH, Saudi Arabia--(BUSINESS WIRE)--Clear Flow from KSA and Sparks from Morocco Win Alshaya Starbucks Sustainability in Action Award at INJAZ Al-Arab YEC 2025.
More than 100 lawmakers urged Starbucks to resume bargaining talks with Workers United, the union representing the coffee giant's baristas, in letters sent to CEO Brian Niccol on Monday. The letters c...
Twenty-six U.S. senators and 82 House representatives have written to Starbucks CEO Brian Niccol, urging the company to resume talks with its workers union, the lawmakers said on Monday.
Last week Starbucks announced that its coffee delivery business is now a $1.0 billion business. Yes, that's right, $1.0 billion.
When the coffee chain introduced a limited-edition ‘Bearista' holiday cup this week, supply quickly ran out. Customers are in open revolt, and resellers are cashing in big.
Starbucks Workers United, representing approximately 9,000 baristas in 550 stores located in 25 major cities, voted overwhelmingly to strike on Thursday, November 13, coinciding with the company's ‘Re...
The coffee maker is selling a 60% stake in the business to Boyu Capital.
Restaurants that cater to lower-income consumers are underperforming higher-priced eateries. It's another sign of the economy's bifurcation.
Starbucks Workers United said 92% of its members voted to authorize the unfair labor practice strike, which comes just ahead of Starbucks' promotional Red Cup Day on Nov. 13.
Starbucks union baristas have voted to authorize an open-ended strike. The strike would disrupt Red Cup Day, one of the company's biggest sales days of the year, and potentially the broader holiday se...
Below estimates were sourced from SimplyWallSt and are intended for educational purposes only as a baseline for the analysis.
| Year | FCF Estimate | % | # Analysts |
|---|---|---|---|
| 2026 | 3.41B | Analyst x6 | |
| 2027 | 3.65B | 6.91% | Analyst x4 |
| 2028 | 3.61B | -1.01% | Analyst x1 |
| 2029 | 3.62B | 0.26% | Est @0.3% |
| 2030 | 3.65B | 0.91% | Est @0.9% |
| 2031 | 3.70B | 1.36% | Est @1.4% |
| 2032 | 3.76B | 1.69% | Est @1.7% |
| 2033 | 3.84B | 1.92% | Est @1.9% |
| 2034 | 3.91B | 1.94% | Est @1.9% |
| 2035 | 3.99B | 2.04% | Est @2.0% |
Below are the FCF estimates with the discount factor and the calculated present value with the terminal value that led the results above.
| Year | FCF | Discount Factor | PV of Future FCF |
|---|---|---|---|
| 2024A | 3.32B | 1.00 | 3.32B |
| 2025A | 2.44B | 1.00 | 2.44B |
| 2026E | 3.41B | 1.08 | 3.14B |
| 2027E | 3.65B | 1.18 | 3.10B |
| 2028E | 3.61B | 1.28 | 2.83B |
| 2029E | 3.62B | 1.38 | 2.62B |
| 2030E | 3.65B | 1.50 | 2.43B |
| 2031E | 3.70B | 1.63 | 2.27B |
| 2032E | 3.76B | 1.77 | 2.13B |
| 2033E | 3.84B | 1.91 | 2.00B |
| 2034E | 3.91B | 2.08 | 1.88B |
| 2035E | 3.99B | 2.25 | 1.77B |
| Terminal | 68.67B | 2.25 | 30.49B |
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