The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value. We use
analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
|Levered FCF (USD, Millions)||$7,127.03||$8,114.33||$8,964.57||$10,182.00||$8,790.00|
|Source||Analyst x9||Analyst x10||Analyst x9||Analyst x2||Analyst x2|
Discounted (@ 8.49%)
Present value of next 5 years cash flows:
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $8,790 × (1 + 2.47%) ÷ (8.49% – 2.47%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
$133,144 = $33,678 + $99,465
Value = Total value / Shares Outstanding ($133,144 / 4,261)Discount to Share Price
Value per share:
Current discount (share price of $44.04): -40.93%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 8.49% = 2.47% + (0.8 * 7.53%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value ($185,424,241,592).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
0.603 = 0.523 (1 + (1- 40%) (25.72%))
Levered Beta used in calculation = 0.8
Purchase Coca-Cola on or before the 'Buy Limit' to receive their next dividend payment.
Mr. James Robert B. Quincey has been Chief Executive Officer of The Coca-Cola Company since May 1, 2017. Mr. Quincey has been the President and served as its Chief Operating Officer of The Coca-Cola Company since August 13, 2015 until May 1, 2017. Mr. Quincey served as the Chief Operating Officer of The Coca-Cola Company since August 13, 2015 until May 1, 2017. Mr. Quincey served as the President of Europe Group at The Coca-Cola Company and Coca Cola International Corp. from January 1, 2013 to August 2015. He served as the President of the Northwest Europe and Nordics Business Unit at The Coca-Cola Company since January 1, 2013. He served as the President of Northwest Europe & Nordics Business Unit at The Coca-Cola Company until January 1, 2013. He served as the President of Mexico Division of Coca-Cola Co since December 2005 until 2008 and also served as its President of South Latin Division since December 2003. Mr. Quincey joined Coca-Cola Company in Atlanta in 1996 as Director of Learning Strategy of the Latin America Group until he moved to Mexico as deputy to the Division President in April 1999. He served as a Region Manager of Argentina & Uruguay since 2000 and then also served as a General Manager of the South Cone region (Argentina, Chile, Uruguay & Paraguay) since January 2003. Prior to joining Coca-Cola Company, he served for The Kalchas Group, as a Partner in strategy consulting. He has been a Director of The Coca-Cola Company since April 26, 2017. He served as a Director of Embotelladora Andina S.A., since April 2006. Mr. Quincey holds a Bachelor's degree in Electronic Engineering from the University of Liverpool and is an Electronic Engineer.
Average tenure and age of the Coca-Cola management team in years:
Average tenure and age of the Coca-Cola board of directors in years:
See our latest analysis for Coca-Cola Breaking down ROE — the mother of all ratios Return on Equity (ROE) weighs Coca-Cola’s profit against the level of its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is assessed against cost of equity, which is measured using the Capital Asset Pricing Model (CAPM) – but let’s not dive into the details of that today. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NYSE:KO Last Perf Feb 16th 18 Essentially, profit margin shows how much money the company makes after paying for all its expenses.Simply Wall St - – Full article
This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. … KO’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value.Simply Wall St - – Full article
See our latest analysis for Coca-Cola How I analyze a dividend stock When researching a dividend stock, I always follow the following screening criteria: Is their annual yield among the top 25% of dividend payers? … Compared to its peers, Coca-Cola generates a yield of 3.12%, which is high for Beverage stocks but still below the market's top dividend payers.Next Steps: Taking into account the dividend metrics, Coca-Cola ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers. … Given that this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you.Simply Wall St - – Full article
To get some insight, I will shine a light on the behaviour of Coca-Cola’s margins so investors can evaluate the revenue and cost drivers behind future earnings projections and understand how they may impact on returns compared to the industry. … Margin Calculation for KO Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 4.55 Billion ÷ 37.31 Billion = 12.20% The past five years have seen Coca-Cola's margin contract, with net income declining at -10.64% on average, which was faster than the average fall in revenue of -1.68%, meaning that the decrease in revenue has coincided with a smaller portion falling to the bottom line. … Using Coca-Cola's margin expectations as a way to understand projections for the future Forward looking projections suggest margins will move from contraction into expansion, with annual earnings growth tipped at -3.44% and revenue expected to fall at 16.84% on an annual basis.Simply Wall St - – Full article
Coca-Cola is trading at price-to-earnings (PE) ratio of 43.41x, this tells us the stock is overvalued compared to the US market average ratio of 19.5x , and overvalued based on current earnings compared to the beverage industry average of 25.86x. … NYSE:KO PE PEG Gauge Dec 21st 17 We understand KO seems to be overvalued based on its current earnings, compared to its industry peers. … This means that, when we account for Coca-Cola's growth, the stock can be viewed as overvalued , based on fundamental analysis.Simply Wall St - – Full article
The Coca-Cola Company (NYSE:KO)’s impressive earnings growth per share is expected to be a big 106.06% over the next three years. … To assess the reasonability of KO’s earnings growth per share, we should look at its most recent growth rate delivered. … This indicates a relatively solid earnings per share growth rate of 106.06% over the next few years, which is an optimistic outlook in the near term.Simply Wall St - – Full article
The Coca-Cola Company, a beverage company, manufactures and distributes various nonalcoholic beverages worldwide. The company primarily offers sparkling beverages and still beverages. Its sparkling beverages include nonalcoholic ready-to-drink beverages with carbonation, such as carbonated energy drinks, and carbonated waters and flavored waters. The company’s still beverages comprise nonalcoholic beverages without carbonation, including noncarbonated waters, flavored and enhanced waters, noncarbonated energy drinks, juices and juice drinks, ready-to-drink teas and coffees, and sports drinks. It also provides flavoring ingredients, sweeteners, beverage ingredients, and fountain syrups, as well as powders for purified water products. The Coca-Cola Company sells its products primarily under the Coca-Cola, Diet Coke/Coca-Cola Light, Coca-Cola Zero, Fanta, Sprite, Minute Maid, Georgia, Powerade, Del Valle, Schweppes, Aquarius, Minute Maid Pulpy, Dasani, Simply, Glacéau Vitaminwater, Gold Peak, FUZE TEA, Glacéau Smartwater, Ice Dew, I LOHAS, and Ayataka brand names. The company offers its beverage products through a network of company-owned or controlled bottling and distribution operators, as well as through independent bottling partners, distributors, wholesalers, and retailers. The Coca-Cola Company has a strategic partnership with Delivery Hero Group to collaborate in the field of online food ordering and delivery services. The company was founded in 1886 and is headquartered in Atlanta, Georgia.
|Name:||The Coca-Cola Company|
The Coca-Cola Company
One Coca-Cola Plaza,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|NYSE||KO||Common Stock||New York Stock Exchange||US||USD||02. Jan 1968|
|DB||CCC3||Common Stock||Deutsche Boerse AG||DE||EUR||02. Jan 1968|
|XTRA||CCC3||Common Stock||XETRA Trading Platform||DE||EUR||02. Jan 1968|
|SWX||KO||Common Stock||SIX Swiss Exchange||CH||USD||02. Jan 1968|
|SWX||KO||Common Stock||SIX Swiss Exchange||CH||CHF||02. Jan 1968|
|WBAG||KO||Common Stock||Wiener Boerse AG||AT||EUR||02. Jan 1968|
|SNSE||KO||Common Stock||Santiago Stock Exchange||CL||USD||02. Jan 1968|
|BMV||KO *||Common Stock||Bolsa Mexicana de Valores||MX||MXN||02. Jan 1968|
|BVL||KO||Common Stock||Bolsa de Valores de Lima||PE||USD||02. Jan 1968|
|BOVESPA||COCA34||BDR EACH REPR 1 COM USD0.25||Bolsa de Valores de Sao Paulo||BR||BRL||25. Jul 2011|
|BASE||KO||CEDEARS EACH 5 REP 1 COM USD0.25||Buenos Aires Stock Exchange||AR||ARS||17. Feb 2000|
|Food, Beverage & Tobacco|
|Company Analysis updated:||2018/02/24|
|Last estimates confirmation:||2018/02/23|
|Last earnings update:||2017/12/31|
|Last annual earnings update:||2017/12/31|
All dates in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.