Abstract

The main purpose of this research report is to conduct a market analysis of Starbucks Corporation. From this analysis, it can be concluded that since 2015, the market value and stock price have risen to a record level. However, due to the financial difficulties faced by the company during the epidemic of COVID-19, it would rebound in 2020. A comparison of Starbucks' market value with its top competitors in the retail coffee and snack industry shows that only McDonald's has a market value of $214.42 billion higher than Starbucks in this industry. In the previous Starbucks stock analysis, the stock price calculated using the absolute valuation model was $94, while the relative valuation model was $89.43, which was lower than the market price of $101.87, indicating that Starbucks' stock was overvalued; Therefore, it is recommended to sell stocks.

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