KO Relative Valuation
KO's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, KO is overvalued; if below, it's undervalued.
Historical Valuation
Coca-Cola Co (KO) is now in the Fair zone, suggesting that its current forward PE ratio of 22.16 is considered Fairly compared with the five-year average of 23.12. The fair price of Coca-Cola Co (KO) is between 70.51 to 78.59 according to relative valuation methord.
Relative Value
Fair Zone
70.51-78.59
Current Price：70.81
Fair
22.05
PE
1Y
3Y
5Y
Trailing
Forward
19.40
EV/EBITDA
Coca-Cola Co. (KO) has a current EV/EBITDA of 19.40. The 5-year average EV/EBITDA is 20.28. The thresholds are as follows: Strongly Undervalued below 17.77, Undervalued between 17.77 and 19.03, Fairly Valued between 21.53 and 19.03, Overvalued between 21.53 and 22.78, and Strongly Overvalued above 22.78. The current Forward EV/EBITDA of 19.40 falls within the Historic Trend Line -Fairly Valued range.
21.08
EV/EBIT
Coca-Cola Co. (KO) has a current EV/EBIT of 21.08. The 5-year average EV/EBIT is 22.57. The thresholds are as follows: Strongly Undervalued below 19.40, Undervalued between 19.40 and 20.98, Fairly Valued between 24.15 and 20.98, Overvalued between 24.15 and 25.73, and Strongly Overvalued above 25.73. The current Forward EV/EBIT of 21.08 falls within the Historic Trend Line -Fairly Valued range.
5.99
PS
Coca-Cola Co. (KO) has a current PS of 5.99. The 5-year average PS is 5.99. The thresholds are as follows: Strongly Undervalued below 5.29, Undervalued between 5.29 and 5.64, Fairly Valued between 6.34 and 5.64, Overvalued between 6.34 and 6.70, and Strongly Overvalued above 6.70. The current Forward PS of 5.99 falls within the Historic Trend Line -Fairly Valued range.
26.34
P/OCF
Coca-Cola Co. (KO) has a current P/OCF of 26.34. The 5-year average P/OCF is 24.09. The thresholds are as follows: Strongly Undervalued below 9.40, Undervalued between 9.40 and 16.75, Fairly Valued between 31.44 and 16.75, Overvalued between 31.44 and 38.79, and Strongly Overvalued above 38.79. The current Forward P/OCF of 26.34 falls within the Historic Trend Line -Fairly Valued range.
30.46
P/FCF
Coca-Cola Co. (KO) has a current P/FCF of 30.46. The 5-year average P/FCF is 29.91. The thresholds are as follows: Strongly Undervalued below 5.77, Undervalued between 5.77 and 17.84, Fairly Valued between 41.98 and 17.84, Overvalued between 41.98 and 54.05, and Strongly Overvalued above 54.05. The current Forward P/FCF of 30.46 falls within the Historic Trend Line -Fairly Valued range.
Coca-Cola Co (KO) has a current Price-to-Book (P/B) ratio of 9.75. Compared to its 3-year average P/B ratio of 10.56 , the current P/B ratio is approximately -7.71% higher. Relative to its 5-year average P/B ratio of 10.85, the current P/B ratio is about -10.12% higher. Coca-Cola Co (KO) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.59%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.23% , the current FCF yield is about -100.00% lower.
9.70
P/B
Median3y
10.56
Median5y
10.85
1.83
FCF Yield
Median3y
2.59
Median5y
3.23
Competitors Valuation Multiple
The average P/S ratio for KO's competitors is 1.69, providing a benchmark for relative valuation. Coca-Cola Co Corp (KO) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 5.07%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of KO increased by 13.99% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 24.04 to 29.57.
The secondary factor is the Revenue Growth, contributed 5.07%to the performance.
Overall, the performance of KO in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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