A. Forecast Development Tab - Sales Revenue Forecast Development
1. As an analyst, how would you analyze the sales growth projections of Starbucks?
2. How many years into the future would you as an analyst be willing to commit to in the sales forecast?
3. Going back to the risks, what are the external factors that could change (increase or decrease) the sales revenue forecasts of Starbucks?
B. Forecast Development Tab - Foreign Operations. CPG and CAP (Segments)
1. Which region/market is growing the fastest? Which is the most profitable? As an analyst, would you invest in the fastest growing or most profitable segment?
2. What method will Starbucks use to translate its foreign subsidiaries' financial statements so that they can be consolidated?
C. Forecast Development Tab - Capital Expenditures, FF&E
1. As an analyst, what can you ascertain from the capital expenditure forecasts? Is this good or bad?
2. As an analyst, what can you ascertain from the FF&E forecasts? Is this good or bad?
D. Valuation Tab - Valuation Parameter Assumptions
1. In the parameters, as an analyst, what are the most important variables and why?
2. Are dividends an important variable in the valuation of Starbucks?
E. Valuation Tab - Estimated Value per Share
Describe each of the following and identify strengths and weaknesses in each. Why are there so many different valuations?
1. Dividend Based Valuation
2. Free Cash Flow Valuation
3. Residual Income Valuation
4. Residual Income Market-to-Book Valuation
5. Free Cash Flow for All Debt and Equity Valuation
6. Intrinsic Valuation
7. Market Based Valuation
F. Valuation Tab - General Questions
1. What is the actual Beta of Starbucks (research required)? Why is Beta important data?
2. On our Course Excel Spreadsheet, the estimated (Intrinsic) value per share is $63.55. Assuming this is correct and calculated on the same day as the market value of Dec. 30th 2016 of $52.52 (picture on Page 1), what would be your recommendation as an analyst to the market?