Starbucks’ operational metrics are as energized as an investment banker after a triple-shot latte.

The company has boosted its base-line profitability by about 50% over the past few years and has, for the first time in its history, been able to grow profits more quickly than revenues since around 2012.

We think that some of this improvement is tied to its acquisition of Teavana in 2013, but that its “Channel Development” (selling Starbucks branded K-Cups and grocery store canned coffee) is the real driver of the improvements.

While we are impressed with Starbucks’ ability to wring profits out of coffee beans and tea bags, the firm looks just at the edge of overvaluation to us. Take a look at the Waterfall and Model below and let us know what you think on the Starbucks thread on the Framework Forum.

Framework Investing Valuation Model for Starbucks 

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