Using the industry peer median P/E multiple (trailing + forward), The Coca-Cola Company (KO) has a fair value of $65.50 based on 5 comparable companies in the Beverages - Non-Alcoholic industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| The Coca-Cola CompanyKO | 323,669 | 24.7x | 23.2x |
| The Procter & Gamble CompanyPG | 333,475 | 21.9x | 20.5x |
| Philip Morris International Inc.PM | 254,611 | 22.5x | 19.4x |
| PepsiCo, Inc.PEP | 207,088 | 25.2x | 17.6x |
| Monster Beverage CorporationMNST | 70,777 | 37.3x | 31.9x |
| Keurig Dr Pepper Inc.KDP | 35,713 | 17.2x | 13.7x |
| Industry Median | 22.5x | 19.4x | |
| (*) Profit after tax | 13,107 | 13,933 | |
| Equity Value | 295,287 | 269,741 | |
| (/) Outstanding shares | 4,313 | 4,313 | |
| Fair Price | $68 | $63 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.