I need an analysis of intrinsic value relative to the market for Starbucks. This is part of a larger analysis project, my group is working off the last 3 years of financial reports. I need all the...

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I need an analysis of intrinsic value relative to the market for Starbucks. This is part of a larger analysis project, my group is working off the last 3 years of financial reports. I need all the sources and the spreadsheet calculations (if used ) as well

Answered Same DayMar 03, 2021

Answer To: I need an analysis of intrinsic value relative to the market for Starbucks. This is part of a larger...

Preeta answered on Mar 06 2021
160 Votes
Intrinsic Value:
The intrinsic value of a business is calculated by getting the present of the free cash flo
w to the equity. Intrinsic value is something which represents the assumed asset value of a company (Batavia and Michael, 2017). It actually depicts the perception of the investors towards the company and its assets that is the actual worth of the company and its shares. If the investors want to buy the stock of a certain company then it checks the intrinsic values. Starbucks is a very popular company and the intrinsic value of this company could be easily available.
The financial year of the company ends on September month of every year. The following are the free cash flow of Starbucks (gurufocus):
September, 2019 – $3240.40
September, 2018 – $9961.40
September, 2017 – $2732.40
The following intrinsic values could be obtained of the company (gurufocus.com):
September, 2019 – $36.86
September, 2018 – $30.41
September, 2017 – $17.95
There has been a sudden increase in the intrinsic value from 2017 to 2018. But as per the reports of 2018 (simply wall street), when...
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