What Is SBUX Fair Value?
Starbucks Corporation (SBUX) fair value estimate using multiple valuation models, updated daily.
As of August 1, 2026, Starbucks Corporation (SBUX) has a composite fair value estimate of $118.38 based on four valuation models: DCF (47% weight), Graham Number (0% weight), PEG (33% weight), and DDM (20% weight). The current market price is $105.25, suggesting the stock is fair value by 12.5%.
Data as of August 1, 2026 (today)
Composite Fair Value
Fair Value3 of 4 models$118.38
vs. current price of $105.25(+12.5%)
How Is SBUX Fair Value Calculated?
Four independent models estimate what SBUX is worth. Each uses different inputs and assumptions. The composite blends them by weight.
SBUX Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
47% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
$130.11
+23.6%Undervalued
Inputs used
DDM (Dividend Discount Model)
20% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
$146.40
+39.1%Undervalued
Inputs used
SBUX Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
0% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
N/A
Requires positive EPS and book value. Starbucks Corporation currently has negative earnings, so the Graham formula cannot be applied.
Inputs used
PEG (Price/Earnings to Growth)
33% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$53.00
-49.6%Overvalued
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
Current price $105.25 is 23.6% below this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $3.70B | $3.40B |
| Year 2 | $4.46B | $3.76B |
| Year 3 | $5.39B | $4.17B |
| Year 4 | $6.50B | $4.62B |
| Year 5 | $7.85B | $5.12B |
| Year 6 | $9.47B | $5.68B |
| Year 7 | $11.43B | $6.29B |
| Year 8 | $13.79B | $6.97B |
| Year 9 | $16.64B | $7.72B |
| Year 10 | $20.08B | $8.56B |
| Terminal Value | $321.53B | $137.04B |
What Are SBUX's Key Financial Metrics?
Earnings & Growth
Current Price
$105.25
EPS (TTM)
$1.73
Forward P/E
33.9
Profit Margin
5.2%
Cash & Balance Sheet
Free Cash Flow
3.1B
EBITDA
5.6B
Book Value
-$7.43
Total Debt
22.5B
What Do Analysts Say About SBUX?
Low
$81.00
Average
$110.74
High
$143.00
Upside
+5.2%
SBUX Fair Value FAQ
What is the fair value of SBUX?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), SBUX's estimated fair value is $118.38. The stock is currently trading at $105.25, which makes it fair value by our analysis.
How is SBUX's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is SBUX overvalued or undervalued?
Based on our analysis, SBUX is fair value. The current price of $105.25 is 12.5% below our estimated fair value of $118.38.
What do Wall Street analysts say about SBUX?
31 analysts cover Starbucks Corporation with a consensus rating of "Buy." The average price target is $110.74, ranging from $81.00 to $143.00. This implies 5.2% upside from the current price.