SBUX trades against a final fair-value range of $31.78-$49.10, with the midpoint set by the accepted valuation synthesis rather than earlier draft model outputs. Fair value range: low $31.8, high $49.1, with mid-point at $40.4.
Currently screens above fair value, so patience matters more than entry speed.
Fair value
$40
Margin of safety
-159.6%
Confidence
80/100
Moat
6.5/10
Educational research only - not investment advice, an offer, or a trade instruction. Confirm current data and do your own due diligence before acting.
$104.93Price
Low $31.78
Mid $40.42
High $49.10
SBUX trades against a final fair-value range of $31.78-$49.10, with the midpoint set by the accepted valuation synthesis rather than earlier draft model outputs.
Global brand equity and consumer
Global brand equity and consumer recognition
Digital loyalty program (Starbucks Rewards)
Digital loyalty program (Starbucks Rewards)
Cycle upside
Post-pandemic normalization, return to office trends, and increasing digital ordering penetration.
§2 سناریوی نزولی
Persistent labor inflation, unionization pressures, and intense competition in China lead to permanently lower margins and flat traffic, dragging down earnings growth and limiting dividend upside.
چگونگی شکست این تز
Margin Compression Sustained
· Medium
Operating margins remain stuck at 9-10% due to permanent structural shifts in labor and input costs.
FV impact
High
China Market Collapse
· Medium
Local competitors aggressively take market share, forcing a retreat or margin-crushing price war in a key growth market.
FV impact
High
Consumer Value Rejection
· Low
Prolonged macroeconomic pressure causes a permanent shift away from premium coffee, impairing same-store sales.
FV impact
Severe
سیگنالهای هشدار اولیه برای پایش
معیار
فعلی
آستانه فعالسازی
Consecutive quarters of declining comparable transactions in North America.
Monitor
Deterioration versus the report thesis
Operating margin failing to recover towards the normalized 14% target.
Monitor
Deterioration versus the report thesis
Loss of market share or severe margin degradation in the China segment.
Monitor
Deterioration versus the report thesis
Significant acceleration in wage inflation or unionization efforts impacting store-level profitability.
Monitor
Deterioration versus the report thesis
Inability to maintain or grow active Starbucks Rewards membership.
SBUX (SBUX)'s margin set covers gross margin, operating margin, net margin, and free-cash-flow margin. The five-year trajectory is plotted so the reader can separate cyclical noise from secular trend.
Margin expansion or compression is read against the revenue base: if operating margin expands while revenue grows, that is operating leverage. If gross margin compresses, the cause (mix shift, input costs, pricing) is annotated in the numbers analysis.
Peer-relative margin context lives on the parent peers tab, which sets SBUX's gross, operating, and net margins against four to five named peers from the same archetype and sector.
FCF margin is reported alongside operating margin so the reader can spot cases where capex intensity changes the cash-conversion read even when reported profitability is steady.
FAQ
SBUX — frequently asked questions
Based on our latest analysis, SBUX looks meaningfully overvalued. The current price is $105 versus a composite fair-value midpoint of $40.4 (range $31.8–$49.1), which implies roughly 61.5% downside to the midpoint.
Our composite fair-value range for SBUX is $31.8–$49.1, with a midpoint of $40.4. The range is triangulated across multiple valuation models (discounted earnings, forward earnings scenarios, peer multiples, and where applicable owner earnings or reverse DCF) and weighted by reliability for SBUX's archetype.
Our current rating for SBUX is Sell with a confidence score of 80/100. SBUX is rated Sell at $104.93 versus the reconciled fair value midpoint of $40.42, implying -61.48% upside/downside. Confidence is separately disclosed at 80/100. This is research for educational purposes, not personalized investment advice.
The top risks our latest report flags for SBUX are: Margin Compression Sustained; China Market Collapse; Consumer Value Rejection. The single biggest risk is Margin Compression Sustained: Operating margins remain stuck at 9-10% due to permanent structural shifts in labor and input costs.
Our current rating for SBUX is Sell, issued with a confidence score of 80/100 and a moat score of 6.5/10. The rating reflects the composite fair-value range ($31.8–$49.1) versus the current price of $105.
SBUX is classified as a mature-dividend stock. Archetype determines how every downstream parameter — discount rate, terminal growth, deceleration curve, terminal multiple, scenario probability weights, scorecard weights, and which valuation models are prioritized — is calibrated for SBUX.
