Hey there on Dec 8 you helped me really good with Power point On Starbucks if you don't remember it was for finance course ---on slide number 7 the DCF is not full complete please help me out only slide 7 I need to know the fair value

STARBUCKS COMPANY ANALYSIS OF STARBUCK COMPANY Introduction The Starbucks Company is an American global coffee company that has its headquarters in Seattle, Washington. This company is considered the largest coffee company in the world. It was first opened in 1971 March 1 st by three partners Jerry Baldwin, Zev Siegel and Gordon Bowker. The company is the world leading coffee firm with over 13,000 outlets across 62 countries in the world. It is also ranked among the top 100 brands in the world according to Interbrand (2006). The company has over 182,000 employees across the globe. Market Position Generally, Starbucks Company operates and competes in the retail coffee and snacks store industry. In the year 2009, due to economic changing conditions, the industry shrank by close to 6.6% to $25.9 billion. The market is considered to be growing annual rate of 3.9%. Starbucks Company dominates 36.9% of the coffee industry in United States. This explains why the company is leading the world. The dominance of Starbuck company is contributed by the quality products it offers to its customers. Balance Sheet Year 2015 million 2014 million 2013 million Cash $1,530.1 $1,708.4 $2,575.7 Total current assets $4,352.7002 $4,168.7002 $5,471.3999 Total assets $12,446.0996 $10,752.9004 $11,516.7002 Total current liabilities $3,653.5 $3,038.7 $5,377.2998 Non current liabilities $625.3 $392.2 $357.7 Total liabilities $6,628.1001 $5,480.8999 $7,036.5 Total equity $5,818 $5,272 $4,480.2002 Income Statement The income have been on the rise as we have said earlier that Starbuck Company is opening new branches in different countries. The year 2015 registered the highest net income. Year 2015 billion 2014 2013 billion 2012 billion billion Revenues $19,162.7 $16,447.8 $14,892.2 $13,299.5 Gross profit $11,375.2 $9,589 $8,509.9 $7,486.2 Operating income $3,351.1 $2,812.8 $-576.8 $1,786.7 $2,757.4 $2,068.1 $8.3 $1,383.8 Net income The Profit and Loss of Starbuck Company Just like other forms of account the Starbuck Company has been registering steady income growth. Increased revenues is equally increased expenses due to expanded operations across the globe. Year Revenues Cost of revenue Gross profit Admin. expenses Others Net profit 2015 million 19,162,700 7,787,500 11,375,200 2014 million 16,447,800 6,858,800 9,589,000 2013 million 14,866,800 6,382,300 8,484,500 7,130,200 6,086,800 5,655,800 893,900 709,600 621,400 2,757,400 2,068,100 8,300 Valuation of Starbuck on Discounted Cash Flows Year Cash lows (million) Calculation Present Value 0 2,683,800 1 3297,020 = 2,683,800 (1 + 22.85%) 2,922,966 2 39,41060 = 3,297,020 (1 + 19.53%) 3,097,544 3 4580264 = 3,941,060 (1 + 16.22%) 3,191,516 4 5171309 = 4,580,264 (1 + 12.90%) 3,194,546 5 5667197 = 5,171,309 (1 + 9.59%) 3,103,696 5 1936071919 = 5,667,197 (1 + 9.59%) (12.80% - 9.59%) 106,031,274 The terminal value 121,541,542 Multiple valuation of Starbuck The value of the Starbucks will remain at 17.19 for the next 12 months. Its competitors will remain adrift of at least 5 points below Starbuck. This is the signs of how dominant the firm is in the market. Valuation Starbucks Corporation EV/EBITDA last 20.57 International Peers EV/EBITDA(e) 2015 20.42 EV/EBITDA 17.19 NTM 10.70 12.99 12.46 Restaurants & Bars 11.30 10.61 9.76 NASDAQ 100 10.25 12.10 11.53 United States of America 9.68 9.15 8.49 Recommendation It is worthy to buy. This is because the firm's performance in the market is above all its competitors and therefore the returns on its shares is equally high. The company is destined for more growth and therefore this provides you with a basis of why you should purchase the shares in this firm. The stock prices of the firm have been constantly on the rise and therefore it will give you maximum returns of your investment. This good firm for investment. The firm has a strong financial base such that it can pay all dividends without further delays. References SBUX Basic Chart | Starbucks Corporation Stock - Yahoo! Finance. (2011, January 30). Yahoo! Finance - Business Finance, Stock Market, Quotes, News. Retrieved January 30, 2011, from http://finance.yahoo.com/q/bc?s=SBUX Basic Chart&t=5y Schrage, E. (2004, June). Supply and the Brand - HBR.org. Retrieved November 23, 2009, from http://hbr.harvardbusiness.org/2004/06/supply-and-the-brand/ar/1 Simon, B. (2009). Up Close in the Flat World: Learning about the Global at a Starbucks in Singapore. Retrieved November 25, 2009, from http://www.hnet.org/~business/bhcweb/publications/BEHonline/2009/simon.pdf Starbucks Corporation. (2010, October 3). Annual Report- Fiscal 2010 [PDF]. Starbucks Coffee Company | Investor Relations | Financial Highlights. (2009). Retrieved November 26, 2009