| Valuation | Member |
Date
|
Popularity | Views | Comments | ||
|---|---|---|---|---|---|---|---|
| $6.23 |
-54.39%
|
Valuecruncher | 07 Oct 2008 | 0 | 0 | ||
| $17.00 |
8.01%
|
GordonGekko | 04 Jul 2008 | 31 | 0 | ||
| $15.07 |
-4.26%
|
TheCrunchBlog | 02 Jul 2008 | 164 | 1 | ||
| $17.63 |
-0.79%
|
GordonGekko | 20 Jun 2008 | 27 | 0 | ||
| $18.45 |
2.22%
|
Sam | 22 Apr 2008 | 39 | 0 | ||
| Price: | $13.66 |
| Updated: | 25 minutes ago |
| Ticker: | SBUX |
| Market: | NASD |
This valuation is part of this blog post:
http://blog.valuecruncher.com/2008/07/starbucks-puts-on-the-brakes-%e2%80%93-what-does-it-mean-for-the-current-valuation/
Starbucks grew revenues from US$5.3 billion in 2004 to US$9.4 billion in 2007 – a 21% compound annual growth rate. Our assumptions of revenues for the next three years are US$10.5 billion in 2008 growing to US$12.5 billion in 2010 – a 9% compound annual growth rate. We have projected EBITDA margins to be flat at 10%. We have used a terminal growth rate of 4.5%. We calculated this terminal growth rate based on year three growth of 8.7% dropping to a 4% stable growth rate by year 10. We used a terminal capital expenditure number of US$800 million. We have used a WACC (discount rate) of 10%.