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How Starbucks’s Valuation Multiple Compares to Peers

How Starbucks’s Valuation Multiple Compares to Peers

The valuation multiple helps investors assess comparable companies. The forward PE multiple is calculated by dividing the company’s current stock price from analysts’ earnings estimate for the next four quarters. As of January 11, 2018, Starbucks was trading at a forward PE multiple of 24.5x compared to 25.0x at the beginning of 2017.