Coca-Cola Bottling Company produces, markets, and distributes nonalcoholic beverages, primarily products of The Coca-Cola Company in the United States. The company was founded in 1902 and is based in Charlotte, North Carolina.
COKE Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Coca-Cola Consolidated Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Coca-Cola Consolidated Inc ranked in the 91th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 2148%. The most interesting components of our discounted cash flow analysis for Coca-Cola Consolidated Inc ended up being:
The company's compound free cash flow growth rate over the past 5.65 years comes in at 0.83%; that's greater than 88.02% of US stocks we're applying DCF forecasting to.
Coca-Cola Consolidated Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 8.27% of tickers in our DCF set.
As a business, Coca-Cola Consolidated Inc experienced a tax rate of about 20% over the past twelve months; relative to its sector (Consumer Defensive), this tax rate is higher than 81.72% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Coca-Cola Consolidated Inc? See TANH, DTEA, LOPE, CORE, and NATR.
Despite the sharp market decline caused by the pandemic, Coca-Cola Consolidated (COKE) is back to January levels, erasing the discount and therefore trading at fair value. While other businesses such as retail have suffered tremendously from the lockdown and will continue to experience a lower volume of sales in the...