Coca-Cola is the world's largest beverage company, refreshing consumers with more than 500 sparkling and still brands. The Coca-Cola Company was founded in 1886 and is based in Atlanta, Georgia.
KO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Coca Cola Co with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Coca Cola Co ranked in the 25th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Coca Cola Co, consider:
Interest coverage, a measure of earnings relative to interest payments, is 12.33 -- which is good for besting 77.23% of its peer stocks (US stocks in the Consumer Defensive sector with positive cash flow).
KO's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 31.73% of tickers in our DCF set.
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 Co? See CORE, TWNK, WMT, UVV, and PG.