SBUXCAUTIOUS

SBUX P/E Ratio Analysis

58.7x

Updated 987h ago·SEC filings & market data

Key Takeaway

The P/E ratio of 58.7x means investors pay $58.70 for each $1 of the company's trailing earnings — a premium price for its profit stream.

Sector Performance

89th percentile

SBUX

58.7x

Sector Median

22.9x

Sector Avg

34.3x

Prior Period

58.6x(Aug 2026)

→ Stable

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Deep Analysis

The P/E ratio of 58.7x means investors pay $58.70 for each $1 of the company's trailing earnings — a premium price for its profit stream.

Compared to the sector median of 22.9x, this places SBUX at the 89th percentile, meaning it is more expensive than roughly 89% of its sector peers. The ratio rose slightly from 58.6x to 58.7x quarter-over-quarter, a +0.3% increase, while year-over-year data is unavailable; the two-point history shows a mild upward drift rather than a decline. The combination of a high valuation level and a slight upward trend signals that the market is already pricing in strong future earnings growth, leaving little room for error if results miss expectations. This rich multiple represents elevated downside risk and contradicts any margin-of-safety-based investment logic, directly supporting the CAUTIOUS overall verdict.

Frequently Asked Questions

What does the P/E Ratio tell investors about SBUX?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

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Learn More About P/E Ratio

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The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.