Latest Ratios: P/E Ratio 57.8x · EV/EBITDA 24.8x · ROE N/A. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $107.3B | $95.0B | $110.9B | $105.1B | $97.6B | $130.8B | $101.5B | $109.0B | $79.3B | $78.5B | $80.5B |
| Enterprise Value | $130.7B | $118.4B | $133.4B | $126.1B | $118.6B | $147.9B | $122.4B | $117.5B | $80.0B | $80.0B | $82.0B |
| P/E Ratio → | 57.75 | 51.16 | 29.45 | 25.49 | 29.77 | 31.16 | 108.76 | 30.28 | 17.54 | 27.26 | 28.49 |
| P/S Ratio | 2.89 | 2.56 | 3.06 | 2.92 | 3.03 | 4.50 | 4.32 | 4.11 | 3.21 | 3.51 | 3.78 |
| P/B Ratio | — | — | — | — | — | — | — | — | 67.42 | 14.38 | 13.66 |
| P/FCF | 43.95 | 38.92 | 33.42 | 28.59 | 38.19 | 28.94 | 889.14 | 33.65 | 7.96 | 29.57 | 25.68 |
| P/OCF | 22.61 | 20.02 | 18.19 | 17.49 | 22.20 | 21.84 | 63.55 | 21.60 | 6.64 | 18.80 | 17.59 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.19 | 3.69 | 3.51 | 3.68 | 5.09 | 5.21 | 4.43 | 3.23 | 3.57 | 3.85 |
| EV / EBITDA | 24.82 | 22.49 | 19.05 | 17.23 | 19.29 | 23.13 | 39.95 | 21.26 | 15.41 | 15.37 | 15.76 |
| EV / EBIT | 36.50 | 32.06 | 24.11 | 21.19 | 25.16 | 25.39 | 76.46 | 24.50 | 13.44 | 18.13 | 19.15 |
| EV / FCF | — | 48.50 | 40.20 | 34.32 | 46.40 | 32.73 | 1072.23 | 36.27 | 8.03 | 30.12 | 26.15 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 24.2% | 24.2% | 26.8% | 27.4% | 26.0% | 28.9% | 21.5% | 28.2% | 29.6% | 30.5% | 31.6% |
| Operating Margin | 9.6% | 9.6% | 15.0% | 16.3% | 14.3% | 16.8% | 6.6% | 15.4% | 15.7% | 18.5% | 19.6% |
| Net Profit Margin | 5.0% | 5.0% | 10.4% | 11.5% | 10.2% | 14.5% | 3.9% | 13.6% | 18.3% | 12.9% | 13.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | — | — | — | — | — | — | — | — | 136.2% | 50.8% | 48.1% |
| ROA | 5.9% | 5.9% | 12.4% | 14.4% | 11.1% | 13.8% | 3.8% | 16.6% | 23.5% | 20.1% | 21.0% |
| ROIC | 17.7% | 17.7% | 28.8% | 34.7% | 28.7% | 29.3% | 15.3% | 148.9% | 66.3% | 43.4% | 44.7% |
| ROCE | 16.2% | 16.2% | 25.5% | 30.2% | 22.0% | 21.5% | 8.9% | 25.9% | 27.1% | 41.5% | 44.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | — | — | — | — | — | — | — | — | 8.03 | 0.72 | 0.61 |
| Debt / EBITDA | 5.05 | 5.05 | 3.69 | 3.36 | 3.87 | 3.69 | 8.24 | 2.02 | 1.82 | 0.76 | 0.69 |
| Net Debt / Equity | — | — | — | — | — | — | — | — | 0.58 | 0.27 | 0.25 |
| Net Debt / EBITDA | 4.44 | 4.44 | 3.22 | 2.88 | 3.41 | 2.68 | 6.82 | 1.53 | 0.13 | 0.28 | 0.28 |
| Debt / FCF | — | 9.58 | 6.79 | 5.73 | 8.21 | 3.79 | 183.08 | 2.62 | 0.07 | 0.55 | 0.47 |
| Interest Coverage | 6.81 | 6.81 | 9.84 | 10.82 | 9.76 | 12.40 | 3.66 | 14.49 | 34.94 | 47.68 | 52.64 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.72 | 0.72 | 0.75 | 0.78 | 0.77 | 1.20 | 1.06 | 0.92 | 2.20 | 1.25 | 1.05 |
| Quick Ratio | 0.51 | 0.51 | 0.56 | 0.59 | 0.53 | 1.00 | 0.85 | 0.67 | 1.95 | 0.93 | 0.74 |
| Cash Ratio | 0.34 | 0.34 | 0.39 | 0.42 | 0.35 | 0.81 | 0.63 | 0.45 | 1.57 | 0.64 | 0.50 |
| Asset Turnover | — | 1.16 | 1.15 | 1.22 | 1.15 | 0.93 | 0.80 | 1.38 | 1.02 | 1.56 | 1.49 |
| Inventory Turnover | 12.90 | 12.90 | 14.89 | 14.46 | 10.97 | 12.89 | 11.90 | 12.44 | 12.43 | 11.40 | 10.57 |
| Days Sales Outstanding | — | 12.54 | 12.25 | 12.01 | 13.30 | 14.23 | 21.66 | 12.11 | 10.23 | 14.19 | 13.16 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.6% | 2.9% | 2.3% | 2.3% | 2.3% | 1.6% | 1.9% | 1.6% | 2.2% | 1.8% | 1.5% |
| Payout Ratio | 149.3% | 149.3% | 68.7% | 59.0% | 69.0% | 50.5% | 207.2% | 48.9% | 38.6% | 50.3% | 41.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.7% | 2.0% | 3.4% | 3.9% | 3.4% | 3.2% | 0.9% | 3.3% | 5.7% | 3.7% | 3.5% |
| FCF Yield | 2.3% | 2.6% | 3.0% | 3.5% | 2.6% | 3.5% | 0.1% | 3.0% | 12.6% | 3.4% | 3.9% |
| Buyback Yield | 0.0% | 0.0% | 1.1% | 0.9% | 4.1% | 0.0% | 1.7% | 9.4% | 9.0% | 2.6% | 2.5% |
| Total Shareholder Yield | 2.6% | 2.9% | 3.5% | 3.3% | 6.4% | 1.6% | 3.6% | 11.0% | 11.2% | 4.4% | 3.9% |
| Shares Outstanding | — | $1.1B | $1.1B | $1.2B | $1.2B | $1.2B | $1.2B | $1.2B | $1.4B | $1.5B | $1.5B |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying SBUX stock.
Starbucks Corporation's current P/E ratio is 57.8x. The historical average is 47.8x. This places it at the 78th percentile of its historical range.
Starbucks Corporation's current EV/EBITDA is 24.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 18.1x.
Based on historical data, Starbucks Corporation is trading at a P/E of 57.8x. This is at the 78th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Starbucks Corporation's current dividend yield is 2.58% with a payout ratio of 149.3%.
Starbucks Corporation has 24.2% gross margin and 9.6% operating margin.
Starbucks Corporation's Debt/EBITDA ratio is 5.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
China SSS and labor costs
Metrics are mathematically derived from official filings.
Margin Compression Amid Turnaround
Operating margin fell from 16.7% in 2024Q3 to 10.5% in 2026Q3, per recent SEC filings, indicating persistent cost pressures despite the latest earnings beat. Net margin improved to 11.2% in 2026Q3, but this appears driven by non-operating items.
The gross margin spike to 69.7% in 2026Q3 is largely a reclassification artifact, not an improvement in underlying economics. The sustained decline in operating margin from 16.7% to 10.5% over eight quarters suggests structural cost inflation, particularly in labor and occupancy, that is not being fully offset by pricing. The net margin recovery to 11.2% in 2026Q3, while operating margin remains at 10.5%, implies that non-operating gains or tax benefits are inflating bottom-line profitability, warranting scrutiny of earnings quality.
Return on Capital Decaying
ROIC has fallen from 8.1% in 2024Q3 to 5.7% in 2026Q3, based on reported figures, indicating a clear deterioration in capital efficiency. This decline suggests that the company is generating less profit per dollar of invested capital, a trend that may persist if same-store sales remain negative.
The drop in ROIC from 8.1% to 5.7% over two years reflects both margin compression and a shrinking asset base, as total assets declined from $33.6B to $28.3B. While the reduction in assets could be seen as a positive efficiency move, the simultaneous decline in operating income suggests that the company is not achieving sufficient returns on its remaining capital. The negative equity position, driven by years of buybacks and dividends, makes ROE uninformative, so ROIC is the more reliable metric for assessing value creation.
Working Capital Efficiency Improves
Cash conversion cycle improved to 27 days in 2026Q3 from 15 days in 2024Q2, per financial statements, driven by a sharp increase in days payable outstanding to 56. This suggests the company is stretching supplier payments, but the trend may not be sustainable.
The CCC lengthening from 15 to 27 days is primarily due to DPO jumping from 21 to 56 days, which indicates the company is taking longer to pay suppliers, potentially to preserve cash. However, DIO also rose from 24 to 70 days, reflecting higher inventory levels, which could signal slowing demand or supply chain inefficiencies. The asset turnover ratio has remained stable around 0.30, suggesting that the efficiency gains are not yet translating into better asset utilization.
Leverage Elevated Despite Debt Reduction
Debt-to-EBITDA improved to 16.72 in 2026Q3 from 25.10 in 2025Q2, per recent filings, but remains extremely high, indicating significant financial risk. Interest coverage of 11.54x in 2026Q3 is comfortable, but the absolute debt load is concerning.
While the reduction in total debt from $33.5B to $22.4B is notable, the debt-to-EBITDA ratio of 16.72x is still far above the levels seen in 2024Q3 (13.14x), suggesting that EBITDA has declined faster than debt. The interest coverage ratio of 11.54x appears adequate, but it is down from 10.94x in 2024Q3, and the company's negative equity position of -$7.7B indicates that the balance sheet is highly leveraged. The high leverage may constrain future capital allocation and increase refinancing risk, especially if interest rates remain elevated.
Liquidity Buffer Thin but Stable
Current ratio improved to 0.76 in 2026Q3 from 0.72 in 2025Q4, per financial statements, but remains below 1.0, indicating a tight liquidity position. Quick ratio of 0.54 suggests limited ability to cover short-term obligations without inventory sales.
The current ratio has been consistently below 1.0 over the past ten quarters, indicating that current liabilities exceed current assets, which is typical for restaurant chains with high payable balances. However, the quick ratio of 0.54 in 2026Q3 is particularly low, suggesting that the company relies heavily on inventory to meet short-term obligations. The $3.4B cash position provides some buffer, but the negative working capital trend warrants monitoring, especially if the company faces a demand shock.
Misapplied Metric: P/E Ratio
The trailing P/E of 64.52 is misleading for SBUX due to volatile earnings and one-time items, per recent filings. A more appropriate metric is EV/EBITDA, which at 27.21x still appears rich but better captures the company's operating performance.
The P/E ratio is distorted by the company's negative book value and the impact of non-operating items on net income, as seen in the 2026Q3 net margin spike. EV/EBITDA is a more reliable valuation metric for a capital-intensive business with significant lease obligations, as it normalizes for capital structure and depreciation. However, even EV/EBITDA of 27.21x is at a premium to peers like MCD (17.20x) and QSR (16.94x), suggesting the market is pricing in a successful turnaround that has yet to be fully reflected in operating results.