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Starbucks (Buffett Intrinsic Value Analysis)

Enter Experimental Mode Historical Financials (% of revenue) Buffett Criteria / Questions / Score Buffett Intrinsic Value Calc

Financial Results 2008 2009 2010 2011 2012 Ave Results

-HOLD Revenue Growth n/a 21% 10% -6% 10% 9% 9% Consistency Buffett Formula (FCF/RFR)

Gross Profit 25% 23% 19% 21% 25% 23% 75% Consistency Pass 5%

EBITDA Margin 16% 16% 10% 12% 18% 15% 15% Consistency Pass 5% Free Cash Flow (fcf) 945

Buffett Potential EBIT Margin 11% 11% 5% 6% 13% 9% 13% Consistency Risk-Free Rate (rfr) 4.2%

(21%)Tax Rates 36% 36% 29% 30% 34% 33% 30% Consistency Pass 5% Buffett Fair Value (EV) 22,232

NOPAT 7% 7% 3% 4% 9% 6% 9% Consistency Pass 5%

D & A 5% 5% 5% 6% 5% 5% 2% Consistency Pass 5% Enterprise Value (EV) Calc

Potential Price Capital Expenditure 10% 11% 9% 5% 4% 8% 5% Consistency Pass 5% + Cash 1,450

$42< Buffett Portfolio - Debt 557

Low Pass 5% Equity Capital 23,125

Working Capital Inv -2% -2% -0% -2% -4% -2% 0% Consistency Shares 746

Last Stock Price < Buffett Portfolio Pass 10%

$53< Rev Growth Pass 5% Potential Stock Price $31

Current Stock Price $53

Free Cash Flow n/a 1% -2% 7% 12% 4% 6% Consistency Potential Return -41%

> Buffett Portfolio Investment Score 50%

Investment Score

50%Investment Score 50%  Adjusted Potential -21%

Notes on the Buffett Analysis of Starbucks

Warren Buffett's formula was never published; however, from our research and Warren Buffett's hints over the years, this formula seems to be the most

likely candidate. WikiWealth actually uses this formula in all our research reports in conjunction with Buffett's qualitative assessments of value. The

numerator for this equation is found on the DCF valuation for Starbucks. It's NOPAT + Depreciation - CapEx - Net Working Capital Change. The risk free

rate is the US treasury rate, a standard risk free measurement.

The Warren Buffett intrinsic valuation is a simplified version of Starbucks's discounted cash flow analysis. Click on the link to see the analysis.

Buffett Analysis Index Starbucks

Updates Automatically | Experiment With This Analysis

!Summary | Profile | News | Chart | SWOT | Cash Flow | Comparative | Buffett | WACC

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