Current Price: $281.35
52 Week Range: $248.90 - $288.70
Recent Change: +$10.80 (+3.99%)
YTD Return: 11.14% (vs MSCI World 10.29%)
Revenue (TTM): $47.06B
Net Income (TTM): $10.63B
Free Cash Flow (TTM): $14.96B
Total Cash: $14.57B
| Inputs | |
|---|---|
| EPS (TTM) | $2.47 (calculated from Net Income/Shares Outstanding) |
| Expected Growth Rate | 5.04% (based on next year's sales growth estimate) |
| Conservative Growth Rate | 4.00% (slightly below estimates) |
| Discount Rate | 9.00% |
| Margin of Safety | 25.00% |
| Calculations | |
|---|---|
| Year 1 EPS | $2.57 |
| Year 2 EPS | $2.67 |
| Year 3 EPS | $2.78 |
| Year 4 EPS | $2.89 |
| Year 5 EPS | $3.01 |
| Value in 5 years (P/E 24) | $72.24 |
| Present Value | $46.86 |
| Intrinsic Value with Margin of Safety | $35.15 |
| Inputs | |
|---|---|
| Cash & Cash Equivalents | $14.57B |
| Total Liabilities | $46.66B |
| Free Cash Flow (TTM) | $14.96B |
| Shares Outstanding | 4.3B (estimated from Revenue/Revenue Per Share) |
| Expected Growth Rate | 5.04% (based on next year's sales growth estimate) |
| Growth Decline Rate | 5.00% |
| Discount Rate | 9.00% |
| Year 10 FCF Multiplier | 12 |
| Year | FCF * Growth Rate | NPV FCF |
|---|---|---|
| 1 | $15.71B | $14.41B |
| 2 | $16.34B | $13.75B |
| 3 | $16.87B | $13.01B |
| 4 | $17.29B | $12.22B |
| 5 | $17.59B | $11.41B |
| 6 | $17.77B | $10.58B |
| 7 | $17.86B | $9.75B |
| 8 | $17.86B | $8.94B |
| 9 | $17.77B | $8.15B |
| 10 | $17.59B | $7.40B |
| DCF Valuation Summary | |
|---|---|
| Total NPV FCF | $109.62B |
| Year 10 FCF Value (Terminal Value) | $211.08B |
| Cash & Equivalents | $14.57B |
| Total Liabilities | $46.66B |
| Company Value | $288.61B |
| Per Share Value | $67.12 |
| Intrinsic Value with Margin of Safety | $50.34 |
| Ratio | Value | Interpretation |
|---|---|---|
| Debt to Equity (D/E) | 176.92% | High leverage compared to industry average |
| Current Ratio | 1.03 | Adequate liquidity to cover short-term obligations |
| Return on Equity (ROE) | 39.55% | Excellent return on shareholder investment |
| Profit Margin | 22.59% | Strong profitability |
| Operating Margin | 25.81% | Efficient operations |
Based on our intrinsic value calculations using both P/E and DCF methods, Coca-Cola's current stock price of $281.35 appears to be significantly higher than our calculated intrinsic values of $35.15 (P/E method) and $50.34 (DCF method with margin of safety).
However, it's important to note:
The significant difference between market price and calculated intrinsic value could be due to brand premium, dividend stability, defensive nature of the consumer staples sector, or market sentiment factors not fully captured in our models.
The current price suggests limited margin of safety based on our calculations. Investors should consider their own risk tolerance and investment goals when evaluating this stock.