Is Starbucks Corp. overvalued or undervalued?

As of 24 January 2019, the valuation grade for Starbucks Corp. has moved from very expensive to risky, indicating a shift in market perception. The company is currently considered overvalued. Key ratios reveal a P/E ratio of 32, an EV to EBIT of 26.89, and an EV to EBITDA of 19.36, which are significantly higher compared to its peers. For instance, McDonald's Corp. has a P/E of 53.45 and an EV to EBITDA of 36.99, while Yum! Brands, Inc. shows a P/E of 27.10 and an EV to EBITDA of 19.07.
Despite a recent stock return of 15.55% over the past year, which outperformed the S&P 500's 10.26%, the valuation metrics suggest that Starbucks is not positioned favorably in the current market environment. The negative book value reflected in the ROE further complicates its valuation outlook, reinforcing the assessment of being overvalued in comparison to its industry peers.