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Running Head: STARBUCKS CORPORATION: TECHNICAL ANALYSIS AND ENTERPRISE VALUE 1
Starbucks Corporation: Technical Analysis and Enterprise Value
Taylor M. Ivey
University of Maryland, University College

Running Head: STARBUCKS CORPORATION: TECHNICAL ANALYSIS AND ENTERPRISE VALUE 2
I. Introduction
In 1971, the first Starbucks store opened as a small business in Seattle,
Washington (Company Information, n.d.). Since then, the Starbucks Corporation has
grown substantially and is now known as the “premier roaster, marketer and retailer
of specialty coffee in the world” (Starbucks Form 10K, 2016). Now reaching over 75
countries all over the world, the Starbucks Corporation specializes in high-quality
coffees, handcrafted beverages (to include coffees and teas), and various food items.
As one of the most popular specialty coffee companies in the world, stocks under the
Starbucks Corporation are traded daily on NASDAQ. For investors to determine
whether it is safe for them to purchase or sell their Starbucks Corporation stocks, the
investors need to analyze current stock prices, and predict what future stock prices
may be. They can do this by looking at numerous indicators under a technical
analysis.
The purpose of this report is to conduct a technical analysis on the Starbucks
Corporation. As part of the technical analysis, the report will analyze the Standard
Deviation, the Simple Moving Average and Exponential Moving Average, the
Bollinger Bands, the Moving Average Convergence/Divergence Oscillator, the
Relative Strength Index, and Aroon Oscillator. It will be with these common
indicators that an analysis can be conducted on the stock prices of the Starbucks
Corporation and whether or not it is safe for investors to invest or sell their stocks.
II. Analysis Section
Standard Deviation
When looking at a set of data, “the amount of variability or dispersion around an
average” (Standard Deviation). When analyzing the date, the larger variability
between the actual value and the average value of the data, the larger the standard
deviation, but when the variability is smaller, the standard deviation is lower. With

Running Head: STARBUCKS CORPORATION: TECHNICAL ANALYSIS AND ENTERPRISE VALUE 3
this information, analysts and investors would be able to measure and analyze both
the expected risk and the price movements of the stock.
The chart below, provided by Stock Charts, analyzes the Starbucks Corporation
Standard Deviation on a daily basis from July 26, 2017 to January 19, 2018. When
analyzing the chart, it is easy to see, during the 178 day range, the Standard Deviation
ranged from 0.25 to 2.00. This means, the average price changes of the Starbucks
Corporation stocks would range from $0.25 to $2.00. For any price movements of the
Starbucks Corporation stocks, if the price were to move higher, or lower, than one
standard deviation ($0.68), depending on which way it moved, it would show an
above average move whether it be strong or weak. While there has not been any
significant changes in quite a bit of time, there was a significant increase in the stock
standard deviation in August of 2017 when it went above $2.00.