Using the PEG framework with analyst consensus forward EPS growth of 9.7% plus 2.7% dividend yield, The Coca-Cola Company has a fair value of $31.34 based on NTM EPS (FY2026) of $3.23. The current PEG ratio is 2.39.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG tends to undervalue slow growers — consider dividend yield and asset value instead.
| EPS Growth RateForward | 7.0% |
| Dividend Yield | +2.7% |
| Adjusted Growth (clamped 8–25%) | 9.7% |
| Fair P/E | 9.7x |
| NTM EPS (FY2026) | $3.23 |
| Fair Value | $31.34 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $3.04 | — | — |
| FY2026E | $3.23 | +6.3% | 13 |
| FY2027E | $3.46 | +7.2% | 15 |
| FY2028E | $3.71 | +7.0% | 10 |
| FY2029E | $3.99 | +7.7% | 5 |
| FY2030E | $4.26 | +6.8% | 5 |
5Y Forward EPS CAGR: 7.0%
| 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%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.