Starbucks Corporation

Analyst Listing

The following analysts provide coverage for the subject firm as of May 2016:

Broker Analyst Analyst Email
Cowen & Company Andrew M. Charles andrew.charles@cowen.com
BMO Capital Markets Andrew Strelzik andrew.strelzik@bmo.com
Deutsche Bank Research Brett Levy brett.levy@db.com
Oppenheimer Brian Bittner brian.bittner@opco.com
RBC Capital Markets David Palmer david.palmer@rbccm.com
Credit Suisse Jason West jason.west@credit-suisse.com
Nomura Research Mark Kalinowski mark.kalinowski@nomura.com
Stifel Nicolaus Mark S. Astrachan msastrachan@stifel.com
Evercore ISI Matt McGinley matt.mcginley@evercoreisi.com
Guggenheim Securities Matthew J. Difrisco matthew.difrisco@guggenheimpartners.com
Wedbush Securities Nick Setyan nick.setyan@wedbush.com
BTIG Peter Saleh psaleh@btig.com
William Blair Sharon Zackfia szackfia@williamblair.com
Stephens Inc Will Slabaugh will.slabaugh@stephens.com

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Primary Input Data

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Derived Input Data

Derived Input

Label

2015 Value

2016
Value

Equational Form

Net Operating Profit Less Adjusted Taxes NOPLAT 2,251  2,532 NOPLAT\, =\, EBIT\, x\, (1 \,-\, Avg \,\,Tax\,\, Rate\,\, on\,\, EBIT)
Free Cash Flow FCF 2,616  3,019 FCF\,=NOPLAT\,+\,Non-Cash\,Expenses-\Delta NWC\,-\,NCS
Tax Shield TS 24 30 TS\,=\,Interest\,\,Paid\,\,x\,\, Avg \,\,Tax\,\,Rate\,\, on\,\, Pre-Tax\,\, Income
Invested Capital IC 8,523 9,620 IC\,=\,Fixed\,\,Operating\,\,Assets\,\,+\,\,Net\,\, Working\,\, Capital
Return on Invested Capital ROIC  26.41% 26.32% ROIC\,=\,\frac { NOPLAT }{ IC }
Net Investment NetInv 695 2,142 NetInv\,=\,{ {IC}_{1}}-{{IC}_{0}}+Depreciation
Investment Rate IR  30.86% 84.62% IR\,=\,\frac {NetInv}{NOPLAT}
Weighted Average Cost of Capital
WACCMarket  26.20% 21.46% WACC\,=\,\frac { E }{ V } { R }_{ E }\,+\,\frac { P }{ V } { R }_{ P }\,+\,\frac { D }{ V } { R }_{ D }\left( 1- Avg\,\, Tax\,\,Rate\,\,on\,\,Pre-Tax\,\,Income \right)
 WACCBook   8.45%   8.29%
Enterprise value
EVMarket 89,510 81,878 EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash
 EVBook   89,384  81,914
Long-Run Growth
g = IR x ROIC
  8.15%  22.27% Long-run growth rates of the income variable are used in the Continuing Value portion of the valuation models.
g = % \Delta GDP   2.50%   2.50%
Margin from Operations M  17.56%  17.97% M\,\,=\,\,\frac{EBIT}{SALES}
Depreciation/Amortization Rate D  21.79%  21.17% D\,\,=\,\,\frac{D+A}{EBITDA}

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Valuation Multiple Outcomes

The outcomes presented in this study are the result of original input data, derived data, and synthesized inputs.

Equational Form

Observed Value

Single-stage

multiple g solution

Two-stage valuation

model g solution

12/31/2015 12/31/2016 12/31/2015 12/31/2016 12/31/2015 12/31/2016

EV/SALES 

\frac {EV}{Sales} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(M)

 4.54  3.78  26.18%  20.81%  26.18%  21.18%

EV/EBITDA

\frac {EV}{EBITDA} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(1\,-\,D)

20.22 16.57 26.18% 20.81% 26.18% 21.18%

EV/NOPLAT

\frac {EV}{NOPLAT} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}

39.77 32.34 26.18% 20.81% 26.18% 21.18%

EV/FCFOPS

\frac {EV}{FCF_{OPS}} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)

34.21 27.12 26.18% 20.81% 26.18% 21.18%

EV/EBIT

\frac {EV}{EBIT} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)

25.85 21.02 26.18% 20.81% 26.18% 21.18%

EV/IC

\frac {EV}{IC} \,= \,\frac{ROIC\,  -\,  g}{WACC\,-\,g}

10.50 8.51 26.18% 20.81% 26.18% 21.18%

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