Is Starbucks Corporation (SBUX) Undervalued?
Based on the current stock price of $85.08 and a P/E ratio of 52.20,Starbucks Corporation has a PEG ratio of 4.51.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 4.51, SBUX appears to be potentially overvalued relative to its growth rate of 11.57%.
Based on a PEG ratio of 3.60 (adjusted for dividends).
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How we analyzed SBUX
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 52.20and dividing it by the annual growth rate of 11.57%.
PEG = 52.20 (P/E) ÷ 11.57 (Growth) = 4.51
Frequently Asked Questions about SBUX
What is the current PEG Ratio for Starbucks Corporation (SBUX)?+
The current PEG Ratio for Starbucks Corporation is 4.51. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is SBUX stock undervalued right now?+
Based on the PEG ratio of 4.51, Starbucks Corporation appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for SBUX?+
The PEGY ratio for Starbucks Corporation is 3.60. This metric accounts for dividend yield (2.91%), providing a more complete valuation picture.