The Coca-Cola Company

NYSE:KO Stock Report

Market Cap: US$309.0b

Coca-Cola Valuation

Is KO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of KO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
US$89.54
Fair Value
20.5% undervalued intrinsic discount
25
Number of Analysts

Below Fair Value: KO ($71.15) is trading below our estimate of fair value ($89.54)

Significantly Below Fair Value: KO is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for KO?

Key metric: As KO is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for KO. This is calculated by dividing KO's market cap by their current earnings.
What is KO's PE Ratio?
PE Ratio28.4x
EarningsUS$10.78b
Market CapUS$308.96b

Price to Earnings Ratio vs Peers

How does KO's PE Ratio compare to its peers?

The above table shows the PE ratio for KO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average26.6x
PEP PepsiCo
19.1x7.58%US$180.1b
MNST Monster Beverage
41.2x12.13%US$62.6b
KDP Keurig Dr Pepper
29.6x11.70%US$44.6b
KOF Coca-Cola FEMSA. de
16.4x8.99%US$20.2b
KO Coca-Cola
28.4x8.56%US$309.0b

Price-To-Earnings vs Peers: KO is expensive based on its Price-To-Earnings Ratio (28.4x) compared to the peer average (26.6x).

Price to Earnings Ratio vs Industry

How does KO's PE Ratio compare vs other companies in the North American Beverage Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
KO 28.4xIndustry Avg. 18.1xNo. of Companies4PE01632486480+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: KO is expensive based on its Price-To-Earnings Ratio (28.4x) compared to the Global Beverage industry average (18.1x).

Price to Earnings Ratio vs Fair Ratio

What is KO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

KO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio28.4x
Fair PE Ratio29.8x

Price-To-Earnings vs Fair Ratio: KO is good value based on its Price-To-Earnings Ratio (28.4x) compared to the estimated Fair Price-To-Earnings Ratio (29.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst KO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$71.15
US$77.67
+9.16%
7.66%US$86.00US$59.60n/a25
May ’26US$71.29
US$77.36
+8.51%
8.22%US$86.00US$59.60n/a25
Apr ’26US$71.87
US$74.72
+3.96%
7.73%US$85.00US$59.60n/a25
Mar ’26US$71.21
US$74.20
+4.19%
8.09%US$85.00US$59.60n/a25
Feb ’26US$63.48
US$71.71
+12.97%
7.85%US$85.00US$59.60n/a25
Jan ’26US$62.26
US$73.18
+17.55%
7.28%US$85.00US$64.00n/a23
Dec ’25US$64.08
US$74.38
+16.08%
7.28%US$85.00US$64.00n/a24
Nov ’25US$65.01
US$74.38
+14.42%
7.28%US$85.00US$64.00n/a24
Oct ’25US$71.71
US$73.09
+1.92%
7.38%US$85.00US$64.00n/a25
Sep ’25US$72.47
US$70.89
-2.18%
5.37%US$78.00US$60.00n/a25
Aug ’25US$67.96
US$70.01
+3.01%
5.37%US$78.00US$60.00n/a25
Jul ’25US$63.28
US$67.96
+7.40%
6.10%US$78.00US$60.00n/a26
Jun ’25US$62.93
US$67.09
+6.61%
5.47%US$74.00US$60.00n/a23
May ’25US$61.93
US$66.89
+8.01%
5.52%US$74.00US$60.00US$71.2924
Apr ’25US$60.68
US$66.10
+8.93%
5.12%US$74.00US$60.00US$71.8723
Mar ’25US$59.53
US$65.97
+10.82%
5.22%US$74.00US$60.00US$71.2123
Feb ’25US$60.98
US$65.36
+7.18%
5.45%US$74.00US$59.00US$63.4823
Jan ’25US$58.93
US$64.62
+9.66%
5.99%US$74.00US$59.00US$62.2623
Dec ’24US$58.64
US$64.14
+9.39%
5.98%US$74.00US$59.00US$64.0823
Nov ’24US$56.44
US$64.06
+13.50%
5.94%US$74.00US$59.00US$65.0122
Oct ’24US$55.98
US$69.34
+23.86%
5.98%US$76.00US$60.00US$71.7122
Sep ’24US$59.31
US$69.71
+17.54%
6.05%US$76.00US$58.00US$72.4723
Aug ’24US$61.77
US$69.54
+12.58%
5.98%US$76.00US$58.00US$67.9623
Jul ’24US$60.22
US$69.36
+15.18%
5.89%US$75.00US$58.00US$63.2823
Jun ’24US$60.00
US$69.55
+15.92%
6.16%US$77.00US$58.00US$62.9324
May ’24US$64.30
US$69.23
+7.67%
6.24%US$77.00US$58.00US$61.9325
AnalystConsensusTarget
Consensus Narrative from 25 Analysts
US$77.67
Fair Value
8.4% undervalued intrinsic discount
25
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/05/28 16:09
End of Day Share Price 2025/05/28 00:00
Earnings2025/03/28
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

The Coca-Cola Company is covered by 57 analysts. 21 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
John StaszakArgus Research Company
Fabrizio SpagnaAxia Financial Research
Ishan MajumdarBaptista Research