Using the industry peer median P/E multiple (trailing + forward), Starbucks Corporation (SBUX) has a fair value of $55.91 based on 7 comparable companies in the Restaurants industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Starbucks CorporationSBUX | 103,626 | 55.8x | 42.2x |
| Marriott International, Inc.MAR | 86,418 | 34.4x | 28.2x |
| Airbnb, Inc.ABNB | 78,321 | 32.4x | 26.3x |
| O'Reilly Automotive, Inc.ORLY | 78,257 | 31.2x | 28.7x |
| NIKE, Inc.NKE | 76,965 | 24.1x | 33.6x |
| Royal Caribbean Cruises Ltd.RCL | 74,789 | 17.6x | 15.2x |
| Carvana Co.CVNA | 65,160 | 35.6x | 40.7x |
| Chipotle Mexican Grill, Inc.CMG | 42,703 | 28.3x | 28.3x |
| Industry Median | 31.2x | 28.3x | |
| (*) Profit after tax | 1,856 | 2,455 | |
| Equity Value | 57,948 | 69,505 | |
| (/) Outstanding shares | 1,140 | 1,140 | |
| Fair Price | $51 | $61 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.