Understanding SBUX PE Ratio and Fair Value

The PE ratio of Starbucks, or SBUX, can be a bit tricky to understand, but it's actually quite simple once you grasp the basics.

The PE ratio, or price-to-earnings ratio, is a measure of how much investors are willing to pay for each dollar of earnings that a company generates. In the case of SBUX, the current PE ratio is around 25.5, which is higher than the industry average of 20.6.

This high PE ratio suggests that investors are optimistic about SBUX's future growth prospects. In fact, the company's earnings per share have been growing at a steady rate of 10% over the past five years.

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SBUX's Price-To-Earnings Ratio is a key metric to consider when evaluating its relative valuation.

The Price-To-Earnings Ratio for SBUX is 36x, which is lower than the peer average of 58.5x.

SBUX's market cap is $94.8 billion, and its earnings are $2.63 billion.

You can calculate the Price-To-Earnings Ratio by dividing the market cap by the current earnings.

Here's a comparison of SBUX's PE Ratio with its peers:

SBUX's PE Ratio is lower than its peers, indicating it's a relatively undervalued company.

The historical PE ratio of Starbucks has been quite fluctuating over the last decade, with an average of 38.0.

In the Dec 2020 quarter, the PE ratio peaked at 182.16, which is a staggering 4.8 times the current PE ratio of 35.79.

The lowest point was in the Jul 2018 quarter, when it reached 15.17, 56% lower than the current PE ratio.

Here's a summary of the historical PE ratio for Starbucks:

The current PE ratio of 35.79 is actually 6% lower than the 10-year historical average, making it a relatively attractive investment opportunity.

Starbucks's PE ratio of 35.79 is higher than the average of its peers, which is 21.16.

Compared to other companies in the Consumer Cyclical sector, Starbucks's PE ratio is 73% higher than the average of 20.63.

Starbucks's PE ratio is higher than that of its peer stocks MCD and PEP, with MCD's PE ratio at 26.02 and PEP's at 25.53.

Here's a comparison of Starbucks's PE ratio with its peer stocks:

Starbucks's PE ratio is higher than the industry average of 24.5x, making it more expensive compared to other companies in the US Hospitality industry.

The PE ratio is a simple calculation that can give you valuable insights into a company's stock performance. To calculate the PE ratio, you need to know the latest stock price and the trailing twelve months earnings per share (EPS).

The stock price is a straightforward number, but the EPS can be a bit trickier to find. As of today, Starbucks's share price is $83.39, which is a great starting point.

To get the EPS, you need to look at the company's earnings over the past 12 months. For Starbucks, the TTM EPS is $2.33, which is a solid number.

Now that you have both numbers, you can plug them into the formula: PE RATIO = STOCK PRICE / TTM EPS. This gives you a PE ratio of 35.79 for Starbucks, which is a good metric to keep an eye on.

It's worth noting that the PE ratio is not a static number, but rather a snapshot of the company's performance at a given time.

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Starbucks's price to earnings ratio is 35.79 as of September 26, 2025.

This is a relatively high ratio, indicating that the stock price is quite high compared to its earnings.

The company's stock is known as SBUX, which is a common abbreviation for Starbucks Corporation.

As of September 26, 2025, the PE ratio for SBUX stock is 35.79.

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The performance of Starbucks Corporation's PE Ratio over the past ten years has been quite varied. The mean historical PE Ratio is 35.66.

The current PE Ratio of 36.10 has actually increased by 10.02% compared to the historical average. This change is notable.

The PE Ratio was at its highest in the March 2025 quarter at 72.51. This is a significant spike from the average.

At its lowest, the PE Ratio was -31.64 in the June 2020 quarter. This is a stark contrast to the current and historical averages.

The minimum annual PE Ratio was 17.01. This provides a benchmark for understanding the company's performance over time.

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Fair Value is a crucial concept in evaluating the relative valuation of SBUX. SBUX's PE Ratio is 36x, which is comparable to its Fair PE Ratio of 36.3x.

The Fair PE Ratio is calculated by considering the company's forecast earnings growth, profit margins, and other risk factors. This means that SBUX's current PE Ratio is actually slightly lower than its estimated Fair PE Ratio.

This suggests that SBUX is a good value based on its current Price-To-Earnings Ratio compared to the estimated Fair Price-To-Earnings Ratio.