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Starbucks (NAS:SBUX) GF Value Rank

: 7 (As of Today)
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Starbucks has the GF Value Rank of 7.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison

For the Restaurants subindustry, Starbucks's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Starbucks GF Value Rank Distribution

For the Restaurants industry and Consumer Cyclical sector, Starbucks's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Starbucks's GF Value Rank falls in comparison to its industry or sector. The grey bar indicates the GF Value Rank's extreme value range as defined by GuruFocus.

Starbucks GF Value Rank Related Terms

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Starbucks (NAS:SBUX) Business Description

Starbucks logo
2401 Utah Avenue South, Seattle, WA, USA, 98134
Starbucks is one of the most widely recognized restaurant brands in the world, operating nearly 36,000 stores across more than 80 countries as of the end of fiscal 2022. The firm operates in three segments: North America, international markets, and channel development (grocery and ready-to-drink beverage). The coffee chain generates revenue from company-operated stores, royalties, sales of equipment and products to license partners, ready-to-drink beverages, packaged coffee sales, and single-serve products.
Laxman Narasimhan officer: ceo-elect PEPSICO, INC., 700 ANDERSON HILL ROAD, PURCHASE NY 10577
Zabrina Jenkins officer: Interim evp, general counsel C/O RETAIL OPPORTUNITY INVESTMENT CORP., 11250 EL CAMINO REAL. SUITE 200, SAN DIEGO CA 92130
Gina Woods officer: evp, Public Affairs 2401 UTAH AVENUE SOUTH, #800, SEATTLE WA 98134
Michael Aaron Conway officer: group president International 18 LOVETON CIRCLE, SPARKS MD 21152
Rachel Ruggeri officer: evp, cfo 2401 UTAH AVENUE SOUTH, #800, SEATTLE WA 98134
Angela Lis officer: evp, chief partner officer 2401 UTAH AVENUE SOUTH, EX6, SEATTLE WA 98134
John Ac Kelly officer: evp, Public Affairs 2401 UTAH AVENUE SOUTH, SEATTLE WA 98134
Allison Richard E Jr director 30 FRANK LLOYD WRIGHT DR, ANN ARBOR MI 48105
Isabel Mahe director ONE APPLE PARK WAY, MS169:2CL, CUPERTINO CA 95014
Andrew Campion director ONE BOWERMAN DRIVE, BEAVERTON OR 97005
Jill Walker officer: svp chief accounting officer 2401 UTAH AVENUE SOUTH, SEATTLE WA 98134
Patrick J Grismer officer: executive vice president 71 SOUTH WACKER DRIVE, 12TH FLOOR, CHICAGO IL 60606
Rachel A Gonzalez officer: evp, general counsel & sec. 3150 SABRE DRIVE, SOUTHLAKE TX 76092
Paul Mutty officer: svp, deputy general counsel 2401 UTAH AVENUE SOUTH, #800, SEATTLE WA 98134
Jorgen Vig Knudstorp director 2401 UTAH AVENUE SOUTH, SEATTLE WA 98134

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