Switch to:
GuruFocus has detected 2 Warning Signs with Starbucks Corp $FRA:SRB.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Starbucks Corp (FRA:SRB)
PEG Ratio:
PE(NRI) Ratio / EBITDA 5-Y Growth
1.20 (As of Today)

PEG is defined as the P/E (NRI) Ratio divided by the growth ratio. The growth rate we use is the 5-year average EBITDA growth rate. As of today, Starbucks Corp's P/E (NRI) Ratio is 31.81. Starbucks Corp's 5-year average EBITDA growth rate is 26.50%. Therefore, Starbucks Corp's PEG for today is 1.20.

FRA:SRB' s PEG Range Over the Past 10 Years
Min: 0.79   Max: 19180
Current: 1.15

0.79
19180

During the past 13 years, Starbucks Corp's highest PEG was 19180.00. The lowest was 0.79. And the median was 2.29.

FRA:SRB's PEG is ranked higher than
83% of the 109 Companies
in the Global Restaurants industry.

( Industry Median: 2.33 vs. FRA:SRB: 1.15 )

Peter Lynch thinks a company with a P/E (NRI) ratio equal to its growth rate is fairly valued.


Definition

PEG is defined as the P/E (NRI) Ratio divided by the growth ratio. The ratio we use is the 5-year average EBITDA growth rate.

Starbucks Corp's PEG for today is calculated as

PEG=P/E (NRI) Ratio/EBITDA Growth Rate (5-year average)
=31.8056543112/26.50
=1.20

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG. PEG is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.


Related Terms

P/E (NRI) Ratio, Peter Lynch Fair Value


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Starbucks Corp Annual Data

Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15Sep16
peg 1.131.9010.664.322.071.52250.750.004.271.27

Starbucks Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
peg 0.000.000.000.008.194.273.402.421.741.27
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK