KO PE Ratio & Valuation,Is KO Overvalued

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 22.09 is considered Fairly compared with the five-year average of 23.10. The fair price of Coca-Cola Co (KO) is between 71.14 to 79.22 according to relative valuation methord.

Relative Value

Fair Zone

71.14-79.22

Current Price：71.16

Fair

22.23

19.32

EV/EBITDA

Coca-Cola Co. (KO) has a current EV/EBITDA of 19.32. The 5-year average EV/EBITDA is 20.26. The thresholds are as follows: Strongly Undervalued below 17.76, Undervalued between 17.76 and 19.01, Fairly Valued between 21.51 and 19.01, Overvalued between 21.51 and 22.76, and Strongly Overvalued above 22.76. The current Forward EV/EBITDA of 19.32 falls within the Historic Trend Line -Fairly Valued range.

21.04

EV/EBIT

Coca-Cola Co. (KO) has a current EV/EBIT of 21.04. The 5-year average EV/EBIT is 22.54. The thresholds are as follows: Strongly Undervalued below 19.39, Undervalued between 19.39 and 20.97, Fairly Valued between 24.12 and 20.97, Overvalued between 24.12 and 25.70, and Strongly Overvalued above 25.70. The current Forward EV/EBIT of 21.04 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 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 6.69, and Strongly Overvalued above 6.69. The current Forward PS of 5.97 falls within the Historic Trend Line -Fairly Valued range.

26.23

P/OCF

Coca-Cola Co. (KO) has a current P/OCF of 26.23. The 5-year average P/OCF is 24.11. The thresholds are as follows: Strongly Undervalued below 9.42, Undervalued between 9.42 and 16.77, Fairly Valued between 31.46 and 16.77, Overvalued between 31.46 and 38.81, and Strongly Overvalued above 38.81. The current Forward P/OCF of 26.23 falls within the Historic Trend Line -Fairly Valued range.

30.33

P/FCF

Coca-Cola Co. (KO) has a current P/FCF of 30.33. 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 30.33 falls within the Historic Trend Line -Fairly Valued range.

Coca-Cola Co (KO) has a current Price-to-Book (P/B) ratio of 9.71. Compared to its 3-year average P/B ratio of 10.53 , the current P/B ratio is approximately -7.81% higher. Relative to its 5-year average P/B ratio of 10.83, the current P/B ratio is about -10.33% higher. Coca-Cola Co (KO) has a Forward Free Cash Flow (FCF) yield of approximately 1.84%. Compared to its 3-year average FCF yield of 2.57%, the current FCF yield is approximately -28.54% lower. Relative to its 5-year average FCF yield of 3.22% , the current FCF yield is about -43.02% lower.

9.77

P/B

Median3y

10.53

Median5y

10.83

1.84

FCF Yield

Median3y

2.57

Median5y

3.22

Competitors Valuation Multiple

The average P/S ratio for KO's competitors is 1.64, providing a benchmark for relative valuation. Coca-Cola Co Corp (KO) exhibits a P/S ratio of , which is -100% above the industry average. Given its robust revenue growth of 5.07%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of KO increased by 14.83% 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.

5.07%

11.85B → 12.46B

Revenue Growth

23.00%

24.04 → 29.57

Margin Expansion

-13.24%

27.09 → 23.50

P/E Change

14.83%

61.80 → 70.97

Mkt Cap Growth

People Also Watch

Frequently Asked Questions

Is Coca-Cola Co (KO) currently overvalued or undervalued?

What is Coca-Cola Co (KO) fair value?

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. The fair price of Coca-Cola Co (KO) is between 71.14 to 79.22 according to relative valuation methord.

How does KO's valuation metrics compare to the industry average?

The average P/S ratio for KO's competitors is 1.64, 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.

What is the current P/B ratio for Coca-Cola Co (KO) as of Dec 16 2025?

As of Dec 16 2025, Coca-Cola Co (KO) has a P/B ratio of 9.71. This indicates that the market values KO at 9.71 times its book value.

What is the current FCF Yield for Coca-Cola Co (KO) as of Dec 16 2025?

As of Dec 16 2025, Coca-Cola Co (KO) has a FCF Yield of 1.84%. This means that for every dollar of Coca-Cola Co’s market capitalization, the company generates 1.84 cents in free cash flow.

What is the current Forward P/E ratio for Coca-Cola Co (KO) as of Dec 16 2025?

As of Dec 16 2025, Coca-Cola Co (KO) has a Forward P/E ratio of 22.09. This means the market is willing to pay $22.09 for every dollar of Coca-Cola Co’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Coca-Cola Co (KO) as of Dec 16 2025?

As of Dec 16 2025, Coca-Cola Co (KO) has a Forward P/S ratio of 5.97. This means the market is valuing KO at $5.97 for every dollar of expected revenue over the next 12 months.

KO Valuation