This was a fun assignment during a Financial Management course analyzing a stock and sharing a report on your findings.
I. Executive Summary: The following is an analysis of the publicly traded Starbucks Corporation known by the ticker symbol, SBUX and referenced to as Starbucks in this document. We have taken an analytical approach to both the stock valuation and firm valuation. In our findings, the Sharpe ratio shows that Starbucks is currently outperforming the market even after risk adjustment. Through further analysis between financial performance, stock performance, and firm performance compared to both the overall market as well as industry-specific competitors we will conclude with a recommendation as to whether or not we believe one should purchase the SBUX stock while understanding external and internal risk factors. As a contingency on our recommendations, we acknowledge that Starbucks is exposed to risks from global trade as well as from a possible change in the economic situation and acknowledge that we have only estimated on a 5-year projection basis which limits our ability to predict further than a 5-year holding period.
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