The Coca-Cola Company

Consumer DefensiveBeverages - Non-AlcoholicNYSE

$80.26

Market Cap: $345.32B

The Coca-Cola Company (KO) Valuation Summary

Updated Apr 22, 2026 22:17

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$31.57 – $197.58	$57.29	-23.2%
Growth Exit 10Y	$35.58 – $204.93	$62.12	-16.8%
EBITDA Exit 5Y	$35.74 – $72.28	$52.51	-29.6%
EBITDA Exit 10Y	$38.92 – $83.14	$57.87	-22.5%
▸ Trading Multiples
P/E	$63.38 – $83.58	$65.33	-12.5%
EV/EBITDA	$44.74 – $66.20	$59.09	-20.8%
EV/Revenue	$21.53 – $73.73	$28.94	-61.2%
▸ PEG
PEG Fair Value	$30.16 – $30.16	$30.16	-59.6%
▸ Earnings Power Value
Earnings Power Value	$22.52 – $39.76	$29.25	-60.8%
▸ Dividend Discount
Dividend Discount	$32.19 – $92.31	$49.62	-33.5%

Valuation History

DCF Analysis

Fair Value

$57.29

Market Price

$80.26

Upside / Downside

-28.6%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project The Coca-Cola Company's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 2.1% to 6.3% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 28, DPO 146, DIO 87). At a 6.8% WACC with mid-year discounting, the terminal value (83% of enterprise value) is derived from the Gordon Growth Model on Year 6 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $57.29 per share, suggesting KO is overvalued by 28.6% at the current price of $80.26.

FCFF Present Value Calculation

WACC

6.84%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	12,969	13,167	13,837	14,182	15,072	15,449
(−) Net Interest	1,615	1,639	1,723	1,766	1,876	1,923
(+) D&A	1,776	1,891	1,988	2,032	2,044	2,095
EBITDA	16,359	16,697	17,548	17,979	18,992	19,467

(−) Tax	2,414	2,451	2,575	2,640	2,805	2,875
(−) CapEx	1,941	1,971	2,071	2,123	2,256	2,313
(−) ΔWC	7,950	9	31	16	41	42
Free Cash Flow (FCFF)	4,054	12,266	12,870	13,201	13,889	14,237

Terminal Value						327,953
WACC / Discount Rate	6.8%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	3,922	11,107	10,908	10,472	10,312	235,571

Enterprise Value	282,292
Projection Period	46,721	16.6%
Terminal Value	235,571	83.4%

(−) Current Net Debt	35,222

Equity Value	247,070
(/) Outstanding Shares	4,313

Fair Price	$57.29

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
4.8%	$81	$95	$115	$145	$198
5.8%	$60	$68	$77	$90	$109
6.8%	$47	$52	$57	$64	$74
7.8%	$38	$41	$45	$49	$55
8.8%	$32	$34	$36	$39	$43

Current price: $80.26. Green = undervalued, Red = overvalued.

Fair Value

$62.12

Market Price

$80.26

Upside / Downside

-22.6%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project The Coca-Cola Company's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 2.1% to 3.4% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 28, DPO 146, DIO 87). At a 6.8% WACC with mid-year discounting, the terminal value (69% of enterprise value) is derived from the Gordon Growth Model on Year 11 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $62.12 per share, suggesting KO is overvalued by 22.6% at the current price of $80.26.

FCFF Present Value Calculation

WACC

6.84%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	12,969	13,167	13,837	14,182	15,072	15,842	16,584	17,291	17,956	18,570	19,035
(−) Net Interest	1,615	1,639	1,723	1,766	1,876	1,972	2,065	2,153	2,235	2,312	2,370
(+) D&A	1,776	1,891	1,988	2,032	2,044	2,073	2,159	2,261	2,364	2,477	2,539
EBITDA	16,359	16,697	17,548	17,979	18,992	19,887	20,807	21,705	22,556	23,360	23,944

(−) Tax	2,414	2,451	2,575	2,640	2,805	2,949	3,087	3,218	3,342	3,456	3,543
(−) CapEx	1,941	1,971	2,071	2,123	2,256	2,371	2,483	2,588	2,688	2,780	2,849
(−) ΔWC	7,950	9	31	16	41	36	34	33	31	28	29
Free Cash Flow (FCFF)	4,054	12,266	12,870	13,201	13,889	14,531	15,204	15,865	16,495	17,095	17,522

Terminal Value											403,642
WACC / Discount Rate	6.8%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	3,922	11,107	10,908	10,472	10,312	10,098	9,889	9,659	9,399	9,117	208,265

Enterprise Value	303,148
Projection Period	94,883	31.3%
Terminal Value	208,265	68.7%

(−) Current Net Debt	35,222

Equity Value	267,926
(/) Outstanding Shares	4,313

Fair Price	$62.12

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
4.8%	$92	$105	$124	$154	$205
5.8%	$68	$75	$84	$96	$113
6.8%	$53	$57	$62	$68	$77
7.8%	$43	$46	$49	$52	$57
8.8%	$36	$37	$39	$42	$44

Current price: $80.26. Green = undervalued, Red = overvalued.

Fair Value

$52.50

Market Price

$80.26

Upside / Downside

-34.6%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project The Coca-Cola Company's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 2.1% to 6.3% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 28, DPO 146, DIO 87). At a 6.8% WACC with mid-year discounting, the terminal value (82% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 15.4x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $52.51 per share, suggesting KO is overvalued by 34.6% at the current price of $80.26.

FCFF Present Value Calculation

WACC

6.84%

3% – 20%

EV/EBITDA Exit Multiple

15.37x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	12,969	13,167	13,837	14,182	15,072	15,449
(−) Net Interest	1,615	1,639	1,723	1,766	1,876	1,923
(+) D&A	1,776	1,891	1,988	2,032	2,044	2,095
EBITDA	16,359	16,697	17,548	17,979	18,992	19,467

(−) Tax	2,414	2,451	2,575	2,640	2,805	—
(−) CapEx	1,941	1,971	2,071	2,123	2,256	—
(−) ΔWC	7,950	9	31	16	41	—
Free Cash Flow (FCF)	4,054	12,266	12,870	13,201	13,889	—

Peers' EBITDA Multiple						15.4x
Terminal Value						299,204
WACC / Discount Rate	6.84%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	3,922	11,107	10,908	10,472	10,312	214,920

Enterprise Value	261,641
Projection Period	46,721	17.9%
Terminal Value	214,920	82.1%

(−) Current Net Debt	35,222
Equity Value	226,419
(÷) Outstanding Shares	4313M
Fair Price	$52	-34.6%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	11.4x	13.4x	15.4x	17.4x	19.4x
4.8%	$44	$51	$58	$65	$72
5.8%	$42	$48	$55	$62	$69
6.8%	$40	$46	$53	$59	$65
7.8%	$38	$44	$50	$56	$62
8.8%	$36	$42	$48	$53	$59

Current price: $80.26. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$57.86

Market Price

$80.26

Upside / Downside

-27.9%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project The Coca-Cola Company's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 2.1% to 3.4% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 28, DPO 146, DIO 87). At a 6.8% WACC with mid-year discounting, the terminal value (67% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 15.4x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $57.87 per share, suggesting KO is overvalued by 27.9% at the current price of $80.26.

FCFF Present Value Calculation

WACC

6.84%

3% – 20%

EV/EBITDA Exit Multiple

15.37x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	12,969	13,167	13,837	14,182	15,072	15,842	16,584	17,291	17,956	18,570	19,035
(−) Net Interest	1,615	1,639	1,723	1,766	1,876	1,972	2,065	2,153	2,235	2,312	2,370
(+) D&A	1,776	1,891	1,988	2,032	2,044	2,073	2,159	2,261	2,364	2,477	2,539
EBITDA	16,359	16,697	17,548	17,979	18,992	19,887	20,807	21,705	22,556	23,360	23,944

(−) Tax	2,414	2,451	2,575	2,640	2,805	2,949	3,087	3,218	3,342	3,456	—
(−) CapEx	1,941	1,971	2,071	2,123	2,256	2,371	2,483	2,588	2,688	2,780	—
(−) ΔWC	7,950	9	31	16	41	36	34	33	31	28	—
Free Cash Flow (FCF)	4,054	12,266	12,870	13,201	13,889	14,531	15,204	15,865	16,495	17,095	—

Peers' EBITDA Multiple											15.4x
Terminal Value											368,013
WACC / Discount Rate	6.84%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	3,922	11,107	10,908	10,472	10,312	10,098	9,889	9,659	9,399	9,117	189,882

Enterprise Value	284,765
Projection Period	94,883	33.3%
Terminal Value	189,882	66.7%

(−) Current Net Debt	35,222
Equity Value	249,543
(÷) Outstanding Shares	4313M
Fair Price	$58	-27.9%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	11.4x	13.4x	15.4x	17.4x	19.4x
4.8%	$55	$62	$69	$76	$83
5.8%	$51	$57	$63	$70	$76
6.8%	$46	$52	$58	$64	$69
7.8%	$42	$48	$53	$58	$63
8.8%	$39	$44	$48	$53	$58

Current price: $80.26. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$65.69

Market Price

$80.26

Upside / Downside

-18.1%

Verdict

Overvalued

Using the industry peer median P/E Multiples multiple (trailing + forward), The Coca-Cola Company (KO) has a fair value of $65.69 based on 8 comparable companies in the Beverages - Non-Alcoholic industry.

P/E Valuation — Beverages - Non-Alcoholic

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
The Coca-Cola CompanyKO	346,161	26.4x	24.6x
The Procter & Gamble CompanyPG	333,732	21.9x	20.5x
Philip Morris International Inc.PM	255,521	22.6x	19.6x
PepsiCo, Inc.PEP	210,222	25.6x	17.9x
Anheuser-Busch InBev SA/NVBUD	140,595	20.9x	16.9x
Monster Beverage CorporationMNST	74,300	39.1x	33.7x
Keurig Dr Pepper Inc.KDP	36,059	17.3x	13.9x
Coca-Cola FEMSA, S.A.B. de C.V.KOF	21,082	17.7x	—
Coca-Cola Consolidated, Inc.COKE	15,678	27.5x	56.7x
Industry Median		22.3x	19.6x
(*) Profit after tax		13,107	14,057
Equity Value		291,770	274,901
(/) Outstanding shares		4,313	4,313
Fair Price		$68	$64

Selected Fair Value (avg of trailing + forward)

$65.69

-18.1%

Fair Value

$59.18

Market Price

$80.26

Upside / Downside

-26.3%

Verdict

Overvalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), The Coca-Cola Company (KO) has a fair value of $59.18 based on 8 comparable companies in the Beverages - Non-Alcoholic industry.

EV/EBITDA Valuation — Beverages - Non-Alcoholic

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
The Coca-Cola CompanyKO	346,161	20.4x	19.9x
The Procter & Gamble CompanyPG	333,732	15.0x	14.6x
Philip Morris International Inc.PM	255,521	17.1x	16.0x
PepsiCo, Inc.PEP	210,222	16.1x	15.3x
Anheuser-Busch InBev SA/NVBUD	140,595	9.7x	9.1x
Monster Beverage CorporationMNST	74,300	27.7x	25.0x
Keurig Dr Pepper Inc.KDP	36,059	12.2x	13.3x
Coca-Cola FEMSA, S.A.B. de C.V.KOF	21,082	8.6x	—
Coca-Cola Consolidated, Inc.COKE	15,678	15.7x	20.8x
Industry Median		15.4x	15.3x
(*) EBITDA		18,702	19,155
= Enterprise Value		287,517	293,457
(-) Net Debt		35,222	35,222
Equity Value		252,295	258,235
(/) Outstanding shares		4,313	4,313
Fair Price		$58	$60

Selected Fair Value (avg of trailing + forward)

$59.18

-26.3%

Fair Value

$29.00

Market Price

$80.26

Upside / Downside

-63.9%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), The Coca-Cola Company (KO) has a fair value of $29.00 based on 8 comparable companies in the Beverages - Non-Alcoholic industry.

EV/Revenue Valuation — Beverages - Non-Alcoholic

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
The Coca-Cola CompanyKO	346,161	8.0x	7.8x
The Procter & Gamble CompanyPG	333,732	4.3x	4.2x
Philip Morris International Inc.PM	255,521	7.4x	6.9x
PepsiCo, Inc.PEP	210,222	2.7x	2.5x
Anheuser-Busch InBev SA/NVBUD	140,595	3.4x	3.2x
Monster Beverage CorporationMNST	74,300	8.7x	7.8x
Keurig Dr Pepper Inc.KDP	36,059	3.1x	3.3x
Coca-Cola FEMSA, S.A.B. de C.V.KOF	21,082	1.6x	—
Coca-Cola Consolidated, Inc.COKE	15,678	2.5x	3.4x
Industry Median		3.2x	3.4x
(*) Revenue		47,941	49,102
= Enterprise Value		155,250	165,316
(-) Net Debt		35,222	35,222
Equity Value		120,028	130,094
(/) Outstanding shares		4,313	4,313
Fair Price		$28	$30

Selected Fair Value (avg of trailing + forward)

$29.00

-63.9%

PEG Fair Value

Fair Value

$30.16

Market Price

$80.26

Upside / Downside

-62.4%

Verdict

Overvalued

Using the PEG framework with analyst consensus forward EPS growth of 9.4% plus 2.7% dividend yield, the company has a fair value of $30.16 based on NTM EPS (FY2026) of $3.22. The current PEG ratio is 2.47.

PEG Ratio

2.47Expensive

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 23.2 ÷ (6.6% + 2.7%) = 2.47

PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.

Growth Category: Slow GrowerPEG less reliable

PEG tends to undervalue slow growers — consider dividend yield and asset value instead.

Fair Value Calculation

EPS Growth RateForward	6.6%
Dividend Yield	+2.7%
Adjusted Growth (clamped 8–25%)	9.4%
Fair P/E	9.4x
NTM EPS (FY2026)	$3.22
Fair Value	$30.16

Growth Analysis

Forward GrowthActive

Period	EPS Est.	Growth	Analysts
FY2025 (actual)	$3.04	—	—
FY2026E	$3.22	+6.0%	13
FY2027E	$3.45	+7.2%	15
FY2028E	$3.69	+6.8%	10
FY2029E	$3.93	+6.7%	5
FY2030E	$4.19	+6.5%	5

5Y Forward EPS CAGR: 6.6%

Historical Growth

Year	Net Income	EPS	YoY
FY2021	$9.8B	$2.25	—
FY2022	$9.5B	$2.19	-2.7%
FY2023	$10.7B	$2.47	+12.8%
FY2024	$10.6B	$2.46	-0.4%
FY2025	$13.1B	$3.04	+23.6%

4Y Historical EPS CAGR: 7.8%

Earnings Power Value

Fair Value

$29.25

Market Price

$80.26

Upside / Downside

-63.6%

Verdict

Overvalued

Using the Earnings Power Value framework with a WACC of 6.8% and normalized earnings of $11.0B, the company has a fair value of $29.25 per share. The EPV range is $22.52 – $39.76 based on WACC sensitivity (5.3% – 8.3%).

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	11,039	11,039	11,039
(/) WACC	8.3%	6.8%	5.3%
Enterprise Value	132,349	161,368	206,687
(-) Net debt	35,222	35,222	35,222
Equity Value	97,127	126,146	171,465
(/) Outstanding shares	4,313	4,313	4,313
Fair Price	$22.52	$29.25	$39.76

Dividend Discount Model

Fair Value

$49.62

Market Price

$80.26

Upside / Downside

-38.2%

Verdict

Overvalued

Using the Two-Stage Dividend Discount Model with a Cost of Equity of 7.4% and projected dividend growth of 5.9%, the fair value is $49.62 per share. The DDM range is $32.19 – $92.31 based on sensitivity analysis across Cost of Equity and growth rate assumptions.

Dividend Profile

Current DPS

$2.04

Dividend Yield

2.73%

Payout Ratio

67.0%

Dividend Coverage

1.49x

FCF Payout Ratio165.8%

DPS CAGR (4Y)5.1%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	$2.04	67.0%	+5.2%
2024	$1.93	78.6%	+5.6%
2023	$1.83	74.2%	+4.7%
2022	$1.75	79.8%	+4.8%
2021	$1.67	74.2%	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$2.16	5.9%	0.9312	$2.01
2027	$2.28	5.9%	0.8672	$1.98
2028	$2.42	5.9%	0.8075	$1.95
2029	$2.56	5.9%	0.7520	$1.93
2030	$2.71	5.9%	0.7002	$1.90
Terminal Value	$2.78 DPS	2.5%		$39.85

PV of Projected Dividends$9.77

PV of Terminal Value$39.85

Fair Value per Share$49.62

Sensitivity Analysis

Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.

Ke \ Growth	3.9%	4.9%	5.9%	6.9%	7.9%
5.4%	$77	$81	$84	$88	$92
6.4%	$57	$60	$63	$65	$68
7.4%	$45	$48	$50	$52	$54
8.4%	$38	$39	$41	$43	$45
9.4%	$32	$34	$35	$37	$38

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.