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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%.