Starbucks Corp

DCF against the market -51.7% (tolerance 15.0%). the steady state against the discount rate: Market inputs.Terminal growth and Market inputs.Long-run nominal GDP growth (3.8 per cent) at WACC.WACC (8.51 per cent): about 52 per cent below the market, beyond the tolerance. The assumption that causes it is the steady state against the discount rate: at the model's WACC of 8.51 per cent the market's enterprise value implies residual operating income growing about 6.1 per cent a year forever after FY2033, against the 3.8 per cent long-run nominal growth assumed, or, read as a steady state, a WACC near 6.1 per cent. Closing the gap takes a WACC about 2.4 points lower or residual income growing 2.3 points faster than the economy for ever; revenue grew about 5.5 per cent a year over FY2021 to FY2026 and ROIC ra

Residual income against the market -45.9% (tolerance 15.0%). the steady state against the discount rate: Market inputs.Long-run nominal GDP growth (3.8 per cent) at WACC.WACC (8.51 per cent): about 46 per cent below the market, beyond the tolerance, for the same reason as the DCF: the market prices residual operating income growing about 6.1 per cent a year after FY2033 at the model's 8.51 per cent WACC, where the model lets it grow at the 3.8 per cent long-run nominal GDP growth