Pershing Square Activist Presentation Deck
Valuation Range
If SSS and valuation revert closer to historical average levels, we believe
that SBUX shares can more than double over the next three years
2022E EPS
Summary Valuation
'18E-'22E CAGR
'22E YOY Growth
P/E Multiple
Implied Share Price at 9/30/21
Plus: 3 Years of Dividends
Impl. Value Per Share at 9/30/21
Premium To Current
3-Year IRR
Base
$3.70
11%
12%
25.0x
$93
5
$97
75%
20%
Upside
$4.35
16%
17%
27.0x
$117
5
$122
119%
30%
We estimate that SBUX will generate a three-year IRR of at least 20% at current
prices, with limited downside risk
Source: Pershing Square estimates.
Note: Projections exclude $179mm of annual pretax non-cash revenue related to the amortization of the upfront payment received in the Nestle transaction ($0.12 per share in 2022).
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