Category Archives for "Starbucks (SBUX)"

Valuing Starbucks with Economic Profit Models

[edit]: My original economic profit model had an error. It was overestimating future invested capital. I kept the original images of each economic profit model but added updated values below them. This also changes my conclusion about Starbucks being overvalued or not. If you only looked at the P/E ratio Starbucks (SBUX) looks expensive with […]

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Starbucks’ Float

It’s Christmas time. A good time for Starbucks. Not because they will sell more hot drinks. They will. It’s because of all those Starbucks gift cards given out. You know you will receive at least one. Any funds loaded onto these cards are counted as a liability on Starbucks’ balance sheet. It’s classified as Unearned […]

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