KO

Coca-Cola Company (The)Consumer Defensive / Beverages - Non-AlcoholicINTACT

The Coca-Cola Company, a beverage company, manufactures and sells various nonalcoholic beverages in the United States and internationally. The company provides Trademark Coca-Cola, sparkling soft drinks and flavors; water, sports, coffee, and tea; juice, value-added dairy, and plant-based beverages; and emerging beverages. It also offers beverage concentrates and syrups, as well as fountain syrups to fountain retailers comprising restaurants and convenience stores. The company sells its products under the Coca-Cola, Diet Coke/Coca-Cola Light, Coca-Cola Zero Sugar, caffeine free Diet Coke, Cherry Coke, Fanta, Sprite, Simply, Fanta Orange, Fanta Zero Orange, Fanta Zero Sugar, Fanta Apple, Sprite Zero Sugar, Simply Orange, Simply Apple, Simply Grapefruit, Fresca, Schweppes, Thums Up, Aquarius, Ayataka, BODYARMOR, Ciel, Costa, Crystal, Dasani, Fuze Tea, Georgia, glacéau smartwater, glacéau vitaminwater, Gold Peak, I LOHAS, Powerade, Topo Chico, Core Power, Del Valle, fairlife, innocent, Maaza, Minute Maid, Minute Maid Pulpy, Santa Clara, and dogadan brands. It operates through a network of independent bottling partners, distributors, wholesalers, and retailers, as well as through bottling and distribution operators. The Coca-Cola Company was founded in 1886 and is headquartered in Atlanta, Georgia.

Share Price
$87.83
52W: $65.35 - $92.49
DCF Fair Value
$31.45
-179.3% Premium
P/E (TTM)
26.4x
ROIC
26.2%
Operating Margin
34.9%
FCF Yield
1.4%
Debt / Equity
1.16x
Piotroski Score
8/9
Altman Z-Score
3.11
Market Cap
$377.9B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($31.45)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)
()
Period Range
$ - $
DCF Fair Value
$31.45
MOS Buy Target (-25%)
$23.59
Valuation Overlays:

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price
$87.83
DCF Fair Value
$31.50
-178.8% Premium
$5,219M
$100M$5,219M (Reported)$50,000M
17.5%
-5%10% (Target)35%
4.5%
0%5%20%
9.0%
6%9% (Standard)15% (High Risk)
2.5%
1% (GDP Floor)2.5% (Inflation)4.0%
$27,900M
-$100B CashBalance Sheet+$150B Debt
10-Yr PV of Cash Flows
$66.4B
PV of Terminal Value
$97.0B
Implied Enterprise Value
$163.4B
Implied Equity Value
$135.5B
YearYr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 10
Projected FCF ($M)$6,132$7,205$8,466$9,948$11,689$12,215$12,765$13,339$13,939$14,567
Present Value (PV)$5,626$6,065$6,538$7,047$7,597$7,283$6,983$6,694$6,418$6,153

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-250.1% Premium
$25.09

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $3.33BVPS: $8.40
Revised Graham Formula+17.1%
$105.92

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Buffett Owner Earnings1.3% Yield
$1.15 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $5.0BYield: 1.3%

Reverse DCF: Market Growth Expectation

SPECULATIVE BARRIER
22.8% CAGR (Next 10 Yrs)

At the current price of $87.83, the market is assuming the business will compound Free Cash Flow at 22.8% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict
⚠ High expectations: Leaves minimal margin of safety for operational hiccups.
Autonomous Thesis Underwriting

Surveil KO with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Coca-Cola Company (The). If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 34.9% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

Frequently Asked Questions: Coca-Cola Company (The) (KO) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Coca-Cola Company (The).

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Coca-Cola Company (The) has an estimated DCF intrinsic fair value of $31.45 per share compared to its current market price of $87.83. This represents an estimated 179.3% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $25.09.

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