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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Coca Cola Co. To summarize, we found that Coca Cola Co ranked in the 29th 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. The most interesting components of our discounted cash flow analysis for Coca Cola Co ended up being:
Interest coverage, a measure of earnings relative to interest payments, is 13.88 -- which is good for besting 82% 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 25.05% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
MKC, CLX, UNFI, CL, and SYY can be thought of as valuation peers to KO, in the sense that they are in the Consumer Defensive sector and have a similar price forecast based on DCF valuation.
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