KO Valuation

Coca-Cola Co

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68.000

-0.75(-1.091%)1D

Overview
Forecast
Valuation
Earnings

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 22.31 is considered Fairly compared with the five-year average of 23.35. The fair price of Coca-Cola Co (KO) is between 68.04 to 76.00 according to relative valuation methord.

Relative Value

Fair Zone

68.04-76.00

Current Price：68.75

Fair

22.31

Trailing

Forward

19.63

EV/EBITDA

Coca-Cola Co. (KO) has a current EV/EBITDA of 19.63. The 5-year average EV/EBITDA is 20.41. The thresholds are as follows: Strongly Undervalued below 17.93, Undervalued between 17.93 and 19.17, Fairly Valued between 21.64 and 19.17, Overvalued between 21.64 and 22.88, and Strongly Overvalued above 22.88. The current Forward EV/EBITDA of 19.63 falls within the Historic Trend Line -Fairly Valued range.

21.29

EV/EBIT

Coca-Cola Co. (KO) has a current EV/EBIT of 21.29. The 5-year average EV/EBIT is 22.81. The thresholds are as follows: Strongly Undervalued below 19.65, Undervalued between 19.65 and 21.23, Fairly Valued between 24.38 and 21.23, Overvalued between 24.38 and 25.96, and Strongly Overvalued above 25.96. The current Forward EV/EBIT of 21.29 falls within the Historic Trend Line -Fairly Valued range.

5.97

Coca-Cola Co. (KO) has a current PS of 5.97. The 5-year average PS is 6.00. The thresholds are as follows: Strongly Undervalued below 5.30, Undervalued between 5.30 and 5.65, Fairly Valued between 6.36 and 5.65, Overvalued between 6.36 and 6.71, and Strongly Overvalued above 6.71. The current Forward PS of 5.97 falls within the Historic Trend Line -Fairly Valued range.

30.95

P/OCF

Coca-Cola Co. (KO) has a current P/OCF of 30.95. The 5-year average P/OCF is 23.61. The thresholds are as follows: Strongly Undervalued below 9.07, Undervalued between 9.07 and 16.34, Fairly Valued between 30.88 and 16.34, Overvalued between 30.88 and 38.16, and Strongly Overvalued above 38.16. The current Forward P/OCF of 30.95 falls within the Overvalued range.

38.61

P/FCF

Coca-Cola Co. (KO) has a current P/FCF of 38.61. The 5-year average P/FCF is 29.40. The thresholds are as follows: Strongly Undervalued below 5.39, Undervalued between 5.39 and 17.40, Fairly Valued between 41.41 and 17.40, Overvalued between 41.41 and 53.42, and Strongly Overvalued above 53.42. The current Forward P/FCF of 38.61 falls within the Historic Trend Line -Fairly Valued range.

Coca-Cola Co (KO) has a current Price-to-Book (P/B) ratio of 10.43. Compared to its 3-year average P/B ratio of 10.74 , the current P/B ratio is approximately -2.93% higher. Relative to its 5-year average P/B ratio of 10.98, the current P/B ratio is about -5.06% higher. Coca-Cola Co (KO) has a Forward Free Cash Flow (FCF) yield of approximately -0.24%. Compared to its 3-year average FCF yield of 2.95%, the current FCF yield is approximately -108.21% lower. Relative to its 5-year average FCF yield of 3.40% , the current FCF yield is about -107.11% lower.

10.43

P/B

Median3y

10.74

Median5y

10.98

-0.24

FCF Yield

Median3y

2.95

Median5y

3.40

Competitors Valuation Multiple

The average P/S ratio for KO's competitors is 3.28, providing a benchmark for relative valuation. Coca-Cola Co Corp (KO) exhibits a P/S ratio of 5.97, which is 82.26% above the industry average. Given its robust revenue growth of 1.39%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Fomento Economico Mexicano SAB de CV

Coca-Cola Femsa SAB de CV

Monster Beverage Corp

Coca-Cola Europacific Partners PLC

Performance Decomposition

Market capitalization of KO increased by 3.01% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 19.42 to 30.34.

The secondary factor is the Revenue Growth, contributed 1.39%to the performance.

Overall, the performance of KO in the past 1 year is driven by Margin Expansion. Which is more sustainable.

1.39%

12.36B → 12.54B

Revenue Growth

56.23%

19.42 → 30.34

Margin Expansion

-54.61%

54.12 → 24.56

P/E Change

3.01%