Starbucks Corp (NASDAQ:SBUX) Earnings Model
Published: April 21, 2023
Model Forecast Thesis: In my professional financial forecast thesis, I anticipate that SBUX's revenue in 2023 will surpass the projected figures. This assertion is based on the recessionary climate, which has resulted in a subdued competitive landscape, with the absence of emerging innovative coffee enterprises. Consequently, SBUX's market share remains relatively stable, which translates to a favorable growth trajectory.
In my financial projection for SBUX, I anticipate the income tax rate to be below 25%, with a forecast of 23%. This is based on an average of the company's income tax rates over the past three years, which suggests a decreasing trend. I believe this trend will continue due to SBUX's ongoing efforts to optimize its tax strategies and minimize tax liability through various legal means. Therefore, I expect a lower income tax rate, which will result in increased profitability and further boost the company's financial performance.
I have determined that the appropriate SBUX PE multiple to utilize is greater than 30. Based on the April PE ratio, I predict a value of 37. SBUX's ability to maintain high prices while retaining a loyal customer base during the recession is a testament to its success. Therefore, I anticipate that this trend will persist, and SBUX's PE multiple will continue to reflect its impressive financial performance.
In my financial projection for SBUX, I anticipate the income tax rate to be below 25%, with a forecast of 23%. This is based on an average of the company's income tax rates over the past three years, which suggests a decreasing trend. I believe this trend will continue due to SBUX's ongoing efforts to optimize its tax strategies and minimize tax liability through various legal means. Therefore, I expect a lower income tax rate, which will result in increased profitability and further boost the company's financial performance.
I have determined that the appropriate SBUX PE multiple to utilize is greater than 30. Based on the April PE ratio, I predict a value of 37. SBUX's ability to maintain high prices while retaining a loyal customer base during the recession is a testament to its success. Therefore, I anticipate that this trend will persist, and SBUX's PE multiple will continue to reflect its impressive financial performance.
| SBUX Model (1245).xlsx |
Disclosure: The author of this article/model has no financial investment or other conflict of interest related to the subject company or other companies discussed. Any views made or implied in the content represent the author’s opinions.