Selection & justification of Methods chosen for valuation estimate of Starbucks/Dunkin Donuts

Company's Market Share

Market share=24.6%

Market share opportunity=60%

Sales in 2019= $1.37billion

Net Income=$242.02million

Gross profits= $708.5million

Gross margin=gross profit/sales

$708.5million/1.37billion=0.52

Operating income=$242.02million

Operating margins=operation income/sales

Operating margin= $242.02million/1.37billion=0.177

Horizontal analysis

Percentage change= {(new value-previous)/previous value}*100%

Net sales in 2019=$0.2422billion, 2020=$1.25billion

Difference=$1.00798billion

Percentage change = {($1.25billion-$0.24202billion)/$0.24202billion}*100%=416%

please explain the valuation computation on that figures of dinkin doughnut.

Answer rating: 100% (QA)

Valuation of a company like Dunkin Donuts involves estimating its worth based on various financial metrics and market factors While the provided infor... View the full answer