You are working on preparing materials for a client who is curious about investing in Starbucks. The client is excited to hear your investment recommendation, but first, they would like to better understand the methods you'll use to arrive at an estimated value for Starbucks stock.

Explain the basic processes of the three main methods of equity valuation:

(1) discounted cash flow analysis,

(2) comparable company analysis,

(3) precedent transactions analysis.

Be sure to explain the three methods clearly enough so that someone without a deep knowledge of investing can understand the three methods. At the same time, try to be specific enough so that they understand your game plan for using these methods to value Starbucks more specifically.