The Financial Valuation of Starbucks Corporation

This dissertation is the fulfillment of a Master in Business Administration degree with the finance specialization, which is the valuation analysis for an existing company. The valuation of a company is one of the key issues in financial management. Therefore, the valuation of securities is a significant topic in a finance dissertation. Starbucks Corporation is now selected to be evaluated for this dissertation. Although the future is unknowable, different analyses can yield insights into how the Company may develop. In such, a framework will be built to show what drives value, most probably is driven by its ability to earn a good return and healthy growth result in high cash flows, and the ultimate source of value. In order to analyze the value of the Company, a financial valuation is applied as a tool for measurement and to explain drivers of value in detail.
The financial valuation of the Company is normally used to analyze upon acquisition or transmission. At present, this is established for an academic purpose, which is composed by reviewing the past five years of historical financial records of the Company, and forecasting the upcoming ten years or even more.
The effects of globalization and financialization are essential to understand the market trends when evaluating the Company; it is because the environment is surrounded by the specialties within the coffee industry. With different methodological analyses, people will understand the function of a complicated economic system, and how it influences the Company. Furthermore, it will also help to judge economic performance as a big-picture between countries. On the other hand, by studying the historical annual report of the Company, people might understand how the Company adapts itself to the market trends and solves different kinds of difficulties mechanically. More than that, financial highlights, discussions of the years' activities, projections, and business plans are demonstrated. Therefore, the purpose of a valuation is primarily to trace the effectiveness of the Company’s strategic decision-making process and its capability of performing in terms of the estimated uncertainties in value, not just focus on its revenue.