Coca Cola Stock Valuation

KO
 Stock
  

USD 64.38  1.47  2.34%   

What is the current enterprise value of Coca-Cola? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Coca Cola, is its stock price multiplied by the total number of shares outstanding, calculating Coca Cola's enterprise value requires a different approach. It uses Coca Cola's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Tangible Asset Value is expected to rise to about 67.3 B this year, although the value of Free Cash Flow will most likely fall to about 10.6 B.
Coca-Cola shows a prevailing Real Value of $68.72 per share. The current price of the firm is $64.38. At this time, the firm appears to be undervalued. Our model approximates the value of Coca-Cola from analyzing the firm fundamentals such as return on equity of 42.06 %, and Profit Margin of 25.69 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor picking up undervalued instruments and discarding overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
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Coca Cola Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Coca Cola's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Coca Cola Most Recent Valuation Data

Price Book
10.98
Price Sales
6.96
Forward Annual Dividend Yield
0.028
EBITDA
13.3 B
Dividend Share
1.7
Ex Dividend Date
2022-06-14
Beta
0.59
Undervalued
Today 64.38
Please note that Coca Cola's price fluctuation is very steady at this time. Calculation of the real value of Coca-Cola is based on 3 months time horizon. Increasing Coca Cola's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Coca-Cola is useful when determining the fair value of the Coca Cola stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Coca Cola. Since Coca Cola is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Coca Cola Stock. However, Coca Cola's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
68.72
Real Value
70.24
Upside
Estimating the potential upside or downside of Coca-Cola helps investors to forecast how Coca Cola stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Coca Cola more accurately as focusing exclusively on Coca Cola's fundamentals will not take into account other important factors:
Earnings
Estimates (8)
LowProjected EPSHigh
2.272.282.29
Details
Hype
Prediction
LowEstimated ValueHigh
62.8764.3965.91
Details
Naive
Forecast
LowNext ValueHigh
64.9566.4868.00
Details
13 Analysts
Consensus
LowTarget PriceHigh
58.0062.6466.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Coca Cola's intrinsic value based on its ongoing forecasts of Coca Cola's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Coca Cola's closest peers. When choosing an evaluation method for Coca-Cola, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Coca Cola Investments

21.83 Billion

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Coca Cola Valuation Drivers Correlation

Many accounts on the financial statements of Coca-Cola are highly interrelated and sometimes correlated. Consequently, when conducting Coca Cola's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Coca Cola
Click cells to compare fundamentals

Coca Cola Valuation Trend

Knowing Coca Cola's actual value is paramount for traders to make sound investment determinations. Coca Cola's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Coca Cola's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Coca Cola's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Coca Cola Market Cap

Coca-Cola is currently regarded as number one stock in market capitalization category among related companies. Market capitalization of Beverages—Non-Alcoholic industry is now estimated at about 3.14 Trillion. Coca Cola holds roughly 271.73 Billion in market capitalization claiming about 9% of stocks in Beverages—Non-Alcoholic industry.
Capitalization  Valuation  Workforce  Revenue  Total debt

Coca Cola Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Coca Cola's current stock value. Our valuation model uses many indicators to compare Coca Cola value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Coca Cola competition to find correlations between indicators driving Coca Cola's intrinsic value. More Info.
Coca-Cola is currently regarded as number one stock in five year return category among related companies. It is currently regarded as number one stock in price to sales category among related companies fabricating about  2.14  of Price to Sales per Five Year Return. The value of Price to Sales Ratio is estimated to slide to 6.36. Comparative valuation analysis is a catch-all model that can be used if you cannot value Coca Cola by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Coca Cola's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Coca Cola's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Coca Cola's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Coca Cola and how it compares across the competition.

About Coca Cola Valuation

The equity valuation mechanism determines the current worth of Coca-Cola on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Coca-Cola. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Coca-Cola based exclusively on its fundamental and basic technical indicators. By analyzing Coca Cola's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Coca Cola's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Coca Cola. We calculate exposure to Coca Cola's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Coca Cola's related companies.
Last ReportedProjected for 2022
Gross Profit23.3 B22.8 B
Profit Margin 0.25  0.24 
The Coca-Cola Company, a beverage company, manufactures, markets, and sells various nonalcoholic beverages worldwide. The company was founded in 1886 and is headquartered in Atlanta, Georgia. Coca Cola operates under BeveragesNon-Alcoholic classification in the United States and is traded on New York Stock Exchange. It employs 79000 people.

Coca Cola Quarterly Enterprise Value

304.41 Billion

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Coca Cola Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Coca Cola does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.80
Earnings Quarterly Growth23.90%
Revenue Growth16.30%
Payout Ratio71.73%
Enterprise Value To Ebitda23.51
Earnings Growth23.10%
Enterprise Value To Revenue7.80

Coca Cola Current Valuation Indicators

Valuation refers to the process of determining the present value of Coca-Cola and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Coca Cola we look at many different elements of the entity such as Coca Cola's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Coca Cola's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Coca Cola's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Coca Cola, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Coca Cola's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Coca Cola's worth.
Please see Stocks Correlation. Note that the Coca-Cola information on this page should be used as a complementary analysis to other Coca Cola's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Transaction History module to view history of all your transactions and understand their impact on performance.

Complementary Tools for Coca Cola Stock analysis

When running Coca-Cola price analysis, check to measure Coca Cola's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Coca Cola is operating at the current time. Most of Coca Cola's value examination focuses on studying past and present price action to predict the probability of Coca Cola's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Coca Cola's price. Additionally, you may evaluate how the addition of Coca Cola to your portfolios can decrease your overall portfolio volatility.
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Is Coca Cola's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Coca Cola. If investors know Coca Cola will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Coca Cola listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.23
Market Capitalization
279.1 B
Quarterly Revenue Growth YOY
0.16
Return On Assets
0.0809
Return On Equity
0.42
The market value of Coca-Cola is measured differently than its book value, which is the value of Coca Cola that is recorded on the company's balance sheet. Investors also form their own opinion of Coca Cola's value that differs from its market value or its book value, called intrinsic value, which is Coca Cola's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Coca Cola's market value can be influenced by many factors that don't directly affect Coca Cola's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Coca Cola's value and its price as these two are different measures arrived at by different means. Investors typically determine Coca Cola value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Coca Cola's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.