I'm doing a DCF valuation (2-Stage FCFF) for SBUX. I'm confused about the following:

1. I know the BV of debt (from Balance Sheet). How do I compute Market value of debt? There is some guidance here: http://pages.stern.nyu.edu/~adamodar/New_Home_Page/valquestions/mktvalofdebt.htm

But I don't know the time to maturity. Thoughts?

2. What is a good estimate of the growth rate of revenues during high growth period? Since the ROC and Reinvestment rate is not stable over last 5 years, I can't simply use:
g = ROC(t+1) * Reinv.
I need to add: [ROC(t+1) - ROC(t)] / [ROC (t+1)] component.

Question

I'm doing a DCF valuation (2-Stage FCFF) for SBUX. I'm confused about the following:

1. I know the BV of debt (from Balance Sheet). How do I compute Market value of debt? There is some guidance here: http://pages.stern.nyu.edu/~adamodar/New_Home_Page/valquestions/mktvalofdebt.htm

But I don't know the time to maturity. Thoughts?

2. What is a good estimate of the growth rate of revenues during high growth period? Since the ROC and Reinvestment rate is not stable over last 5 years, I can't simply use:
g = ROC(t+1) * Reinv. 
I need to add: [ROC(t+1) - ROC(t)] / [ROC (t+1)] component.

anonymous · Answer

ON the first part; since no tangible information is given I would take the bond rating of similar companies operating in the same industry segment and use that to value the debt. What we usually did in my former place of work was to take a group of companies in the same segment whose bond valuation was available, average the  valuations and use that to value this debt.

Also check if this co has out standing market traded bonds. If so then the same rating can be used to value its book debt.