ABSTRACT

STARBUCKS CORPORATION (HEREINAFTER “STARBUCKS” OR “THE COMPANY”) IS A WORLDWIDE COFFEE RETAILER, WHICH OPERATES OVER 33,000 STORES LOCATED IN OVER 83 COUNTRIES NOWADAYS.  THE PURPOSE OF THE STUDY IS TO ESTIMATE STARBUCKS’ INTRINSIC VALUE AS OF DECEMBER 31, 2021 AND IDENTIFY WHETHER THE COMPANY WAS OVERVALUED OR UNDERVALUED. SEVERAL ANALYSES GIVE INVESTORS AND SHAREHOLDERS AN INSIGHT INTO HOW THE COMPANY MAY DEVELOP OR IDENTIFY THE ABILITY TO GENERATE POSITIVE RETURNS FROM INVESTING IN STARBUCKS.  THIS STUDY IS MAINLY SEPARATED INTO TWO ASPECTS. THE FIRST PART SPECIFICALLY DISCUSSES THE COMPANY OVERVIEW, INDUSTRY ANALYSIS, AND ECONOMIC OUTLOOK, WHICH INCLUDES SWOT ANALYSIS, PESTEL ANALYSIS, PORTER'S FIVE FORCES ANALYSIS, AND VALUE CHAIN ANALYSIS TO IDENTIFY EXTERNAL AND INTERNAL FACTORS THAT MAY INFLUENCE THE COMPANY. THE SECOND PART FOCUSES ON FINANCIAL ANALYZES, INCLUDING BOTH HISTORICAL AND FORECASTED FINANCIAL STATEMENT. THREE VALUATION MODELS AND A SENSITIVE ANALYSIS ARE APPLIED TO UNDERSTAND THE COMPANY’S FINANCIAL CONDITIONS AND PERFORMANCE. STARBUCKS’ INTRINSIC VALUE IS DERIVED FROM THE THREE DISCOUNTED CASH FLOW MODELS, INDICATING THE MARKET OVERVALUED THE COMPANY’S STOCK PRICE AS OF DECEMBER 31, 2021. FINALLY, INVESTORS AND SHAREHOLDERS CAN UNDERSTAND MORE ABOUT STARBUCKS’ CAPITAL STRUCTURE, FINANCIAL HIGHLIGHTS, AND INTRINSIC VALUE, BECAUSE THIS SET OF INFORMATION IS CRITICAL FOR EXISTING INVESTORS AND POTENTIAL INVESTORS TO MAKE INVESTMENT DECISIONS