SBUX · Consumer Cyclical
Starbucks (SBUX) stock valuation & score
Starbucks Corporation (SBUX) is a consumer cyclical company with a market capitalisation of $111.0B. Its share price was $97.34 as of September 17, 2026.
Arqon grades its valuation F and gives it an overall score of 44 out of 100, which ranks Starbucks #48 of the 58 large US companies Arqon covers.
- Valuation grade
- F
- Overall score
- 44/100
- Rank
- 48/58
- Share price
- $97.34
- Market cap
- $111.0B
- P/E ratio
- 59.8×
Valuation grade: F
Starbucks is graded F, the lowest grade: the share price is well above what its valuation models justify.
The grade combines a discounted cash flow (DCF) model, a simpler model built on earnings and free cash flow, and a comparison of today’s P/E, price-to-free-cash-flow and EV/EBITDA multiples with their own historical medians. It describes the price relative to those models, not a recommendation.
Starbucks’s fair value, its upside and the full DCF breakdown are reserved for Arqon members.
See the fair valueOverall score: 44/100
A score of 44 points to weak fundamentals. The overall score adds four pillars, each marked out of 25: profitability (returns on capital and margins), growth (revenue, earnings and free cash flow), financial health (debt and interest coverage) and quality (accounting solidity and dilution).
- Strength — Return on invested capital (ROIC): 13.8% for Starbucks, against a median of 10.5% across the 58 companies Arqon covers.
- Weak point — EPS growth (5-year CAGR): -17.8% for Starbucks, against a median of 5.6% across the 58 companies Arqon covers.
- Weak point — Net margin: 5.0% for Starbucks, against a median of 10.5% across the 58 companies Arqon covers.
SBUX key financial ratios
| Ratio | SBUX | Median of the companies covered |
|---|---|---|
| P/E ratio | 59.8× | 28.9× |
| Price-to-sales | 3.0× | 3.2× |
| EV / EBITDA | 25.0× | 19.6× |
| Return on invested capital (ROIC) | 13.8% | 10.5% |
| Gross margin | 24.2% | 49.0% |
| Net margin | 5.0% | 10.5% |
| Free cash flow margin | 6.6% | 10.9% |
| Revenue growth (5-year CAGR) | 6.4% | 10.6% |
| EPS growth (5-year CAGR) | -17.8% | 5.6% |
| Current ratio | 0.72 | 1.11 |
| Interest coverage | 6.6× | 8.0× |
| Dividend yield | 2.5% | 0.4% |
Run your own SBUX valuation
Load Starbucks’s figures into Arqon’s free calculators and test your own assumptions.
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Frequently asked questions
Is SBUX stock undervalued?
Arqon grades Starbucks’s valuation F: on its models, the share price looks very demanding relative to the company’s earnings and cash flows. The fair value estimate itself is reserved for Arqon members. This is not investment advice.
What is Starbucks’s Arqon score?
Starbucks scores 44 out of 100, #48 of the 58 companies Arqon covers. The score adds profitability, growth, financial health and quality, each marked out of 25.
How often is this page updated?
Prices are refreshed every weekday before the US market opens, valuation grades every week and scores after each quarterly report. Prices shown are as of September 17, 2026; the valuation grade as of September 12, 2026.
Arqon is a research tool, not an investment adviser. Grades and scores describe data and models; they are not a recommendation to buy or sell any security.