We’ve recently updated our valuation analysis.

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

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

KO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue6.7x
Enterprise Value/EBITDA21.7x
PEG Ratio3.7x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average33.5x
PEP PepsiCo
38.4x9.7%US$252.9b
MNST Monster Beverage
46.6x13.4%US$60.3b
KDP Keurig Dr Pepper
33.5x9.2%US$44.1b
KOF Coca-Cola FEMSA. de
15.7x8.5%US$17.9b
KO Coca-Cola
26.4x7.2%US$260.6b

Price-To-Earnings vs Peers: KO is good value based on its Price-To-Earnings Ratio (26.4x) compared to the peer average (33.5x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.9%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.9%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: KO is expensive based on its Price-To-Earnings Ratio (26.4x) compared to the Global Beverage industry average (21.1x)


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 Ratio26.4x
Fair PE Ratio28.9x

Price-To-Earnings vs Fair Ratio: KO is good value based on its Price-To-Earnings Ratio (26.4x) compared to the estimated Fair Price-To-Earnings Ratio (28.9x).


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.

Below Fair Value: KO ($60.26) is trading below our estimate of fair value ($63.9)

Significantly Below Fair Value: KO is trading below fair value, but not by a significant amount.


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$60.26
US$69.47
+15.3%
6.1%US$77.00US$58.00n/a25
May ’24US$64.30
US$69.17
+7.6%
6.1%US$77.00US$58.00n/a26
Apr ’24US$62.03
US$67.68
+9.1%
6.5%US$77.00US$58.00n/a26
Mar ’24US$58.86
US$67.91
+15.4%
6.3%US$77.00US$58.00n/a25
Feb ’24US$61.33
US$67.70
+10.4%
6.5%US$77.00US$58.00n/a23
Jan ’24US$63.61
US$67.13
+5.5%
7.1%US$77.00US$58.00n/a24
Dec ’23US$63.79
US$66.60
+4.4%
7.5%US$78.00US$58.00n/a25
Nov ’23US$59.64
US$66.56
+11.6%
7.4%US$78.00US$58.00n/a25
Oct ’23US$56.02
US$69.81
+24.6%
6.3%US$78.00US$58.00n/a24
Sep ’23US$62.00
US$69.64
+12.3%
6.1%US$78.00US$58.00n/a24
Aug ’23US$64.52
US$69.75
+8.1%
6.0%US$78.00US$58.00n/a24
Jul ’23US$64.38
US$70.11
+8.9%
6.7%US$78.00US$58.00n/a24
Jun ’23US$63.07
US$69.82
+10.7%
6.4%US$76.00US$58.00n/a24
May ’23US$64.61
US$69.88
+8.2%
6.2%US$76.00US$59.00US$64.3024
Apr ’23US$62.87
US$67.38
+7.2%
6.0%US$76.00US$59.00US$62.0324
Mar ’23US$61.97
US$67.19
+8.4%
5.9%US$76.00US$59.00US$58.8624
Feb ’23US$60.56
US$64.11
+5.9%
4.8%US$70.00US$58.00US$61.3324
Jan ’23US$59.21
US$62.85
+6.2%
4.8%US$69.00US$55.00US$63.6123
Dec ’22US$52.30
US$62.43
+19.4%
4.5%US$67.00US$55.00US$63.7924
Nov ’22US$56.17
US$62.21
+10.8%
4.6%US$67.00US$55.00US$59.6424
Oct ’22US$53.02
US$62.21
+17.3%
4.8%US$67.00US$55.00US$56.0224
Sep ’22US$56.69
US$62.13
+9.6%
4.7%US$67.00US$55.00US$62.0024
Aug ’22US$57.03
US$61.96
+8.6%
4.4%US$67.00US$55.00US$64.5223
Jul ’22US$53.96
US$59.53
+10.3%
5.4%US$67.00US$53.00US$64.3823
Jun ’22US$55.28
US$59.13
+7.0%
4.9%US$67.00US$53.00US$63.0723
May ’22US$53.98
US$59.13
+9.5%
4.9%US$67.00US$53.00US$64.6123

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


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