The Coca-Cola Company

Consumer DefensiveBeverages - Non-AlcoholicNYSE

$78.42

Market Cap: $337.53B

The Coca-Cola Company (KO) Valuation Summary

Updated May 11, 2026 22:05

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$30.91 – $180.00	$55.45	-29.3%
Growth Exit 10Y	$34.82 – $186.68	$60.12	-23.3%
EBITDA Exit 5Y	$34.57 – $70.70	$51.15	-34.8%
EBITDA Exit 10Y	$37.74 – $81.09	$56.31	-28.2%
▸ Trading Multiples
P/E	$68.18 – $79.16	$68.68	-12.4%
EV/EBITDA	$48.02 – $68.97	$58.92	-24.9%
EV/Revenue	$21.94 – $76.78	$31.25	-60.1%
▸ PEG
PEG Fair Value	$30.08 – $30.08	$30.08	-61.6%
▸ Earnings Power Value
Earnings Power Value	$22.07 – $38.66	$28.58	-63.6%
▸ Dividend Discount
Dividend Discount	$31.46 – $88.13	$48.15	-38.6%

Valuation History

DCF Analysis

Fair Value

$55.45

Market Price

$78.42

Upside / Downside

-29.3%

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 2.4% 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 7.0% 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 $55.45 per share, suggesting KO is overvalued by 29.3% at the current price of $78.42.

FCFF Present Value Calculation

WACC

6.97%

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	13,006	13,182	13,911	14,182	15,072	15,449
(−) Net Interest	1,619	1,641	1,732	1,766	1,876	1,923
(+) D&A	1,776	1,892	1,990	2,036	2,048	2,099
EBITDA	16,401	16,715	17,632	17,983	18,996	19,471

(−) Tax	2,421	2,454	2,589	2,640	2,805	2,875
(−) CapEx	1,947	1,973	2,082	2,123	2,256	2,313
(−) ΔWC	7,952	8	34	13	41	42
Free Cash Flow (FCFF)	4,082	12,280	12,927	13,208	13,893	14,240

Terminal Value						318,869
WACC / Discount Rate	7.0%
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	3,947	11,100	10,924	10,435	10,261	227,711

Enterprise Value	274,378
Projection Period	46,666	17.0%
Terminal Value	227,711	83.0%

(−) Current Net Debt	35,222

Equity Value	239,156
(/) Outstanding Shares	4,313

Fair Price	$55.45

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.0%	$78	$91	$108	$135	$180
6.0%	$58	$65	$74	$86	$103
7.0%	$46	$50	$55	$62	$71
8.0%	$37	$40	$44	$48	$53
9.0%	$31	$33	$35	$38	$41

Current price: $78.42. Green = undervalued, Red = overvalued.

Fair Value

$60.12

Market Price

$78.42

Upside / Downside

-23.3%

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 2.4% 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 7.0% WACC with mid-year discounting, the terminal value (68% 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 $60.12 per share, suggesting KO is overvalued by 23.3% at the current price of $78.42.

FCFF Present Value Calculation

WACC

6.97%

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	13,006	13,182	13,911	14,182	15,072	15,842	16,584	17,291	17,956	18,570	19,035
(−) Net Interest	1,619	1,641	1,732	1,766	1,876	1,972	2,065	2,153	2,235	2,312	2,370
(+) D&A	1,776	1,892	1,990	2,036	2,048	2,076	2,161	2,263	2,364	2,477	2,539
EBITDA	16,401	16,715	17,632	17,983	18,996	19,890	20,810	21,707	22,556	23,360	23,944

(−) Tax	2,421	2,454	2,589	2,640	2,805	2,949	3,087	3,218	3,342	3,456	3,543
(−) CapEx	1,947	1,973	2,082	2,123	2,256	2,371	2,483	2,588	2,688	2,780	2,849
(−) ΔWC	7,952	8	34	13	41	36	34	33	31	28	29
Free Cash Flow (FCFF)	4,082	12,280	12,927	13,208	13,893	14,535	15,206	15,868	16,495	17,095	17,522

Terminal Value											392,355
WACC / Discount Rate	7.0%
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	3,947	11,100	10,924	10,435	10,261	10,036	9,816	9,576	9,306	9,016	200,090

Enterprise Value	294,506
Projection Period	94,416	32.1%
Terminal Value	200,090	67.9%

(−) Current Net Debt	35,222

Equity Value	259,284
(/) Outstanding Shares	4,313

Fair Price	$60.12

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.0%	$88	$100	$117	$143	$187
6.0%	$66	$72	$80	$92	$107
7.0%	$52	$55	$60	$66	$74
8.0%	$42	$44	$47	$51	$55
9.0%	$35	$36	$38	$41	$43

Current price: $78.42. Green = undervalued, Red = overvalued.

Fair Value

$51.14

Market Price

$78.42

Upside / Downside

-34.8%

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 2.4% 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 7.0% WACC with mid-year discounting, the terminal value (82% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 15.0x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $51.15 per share, suggesting KO is overvalued by 34.8% at the current price of $78.42.

FCFF Present Value Calculation

WACC

6.97%

3% – 20%

EV/EBITDA Exit Multiple

15.04x

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	13,006	13,182	13,911	14,182	15,072	15,449
(−) Net Interest	1,619	1,641	1,732	1,766	1,876	1,923
(+) D&A	1,776	1,892	1,990	2,036	2,048	2,099
EBITDA	16,401	16,715	17,632	17,983	18,996	19,471

(−) Tax	2,421	2,454	2,589	2,640	2,805	—
(−) CapEx	1,947	1,973	2,082	2,123	2,256	—
(−) ΔWC	7,952	8	34	13	41	—
Free Cash Flow (FCF)	4,082	12,280	12,927	13,208	13,893	—

Peers' EBITDA Multiple						15.0x
Terminal Value						292,838
WACC / Discount Rate	6.97%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	3,947	11,100	10,924	10,435	10,261	209,122

Enterprise Value	255,789
Projection Period	46,666	18.2%
Terminal Value	209,122	81.8%

(−) Current Net Debt	35,222
Equity Value	220,567
(÷) Outstanding Shares	4313M
Fair Price	$51	-34.8%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	11.0x	13.0x	15.0x	17.0x	19.0x
5.0%	$42	$49	$57	$64	$71
6.0%	$40	$47	$54	$61	$67
7.0%	$38	$45	$51	$58	$64
8.0%	$36	$43	$49	$55	$61
9.0%	$35	$40	$46	$52	$58

Current price: $78.42. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$56.30

Market Price

$78.42

Upside / Downside

-28.2%

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 2.4% 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 7.0% WACC with mid-year discounting, the terminal value (66% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 15.0x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $56.31 per share, suggesting KO is overvalued by 28.2% at the current price of $78.42.

FCFF Present Value Calculation

WACC

6.97%

3% – 20%

EV/EBITDA Exit Multiple

15.04x

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	13,006	13,182	13,911	14,182	15,072	15,842	16,584	17,291	17,956	18,570	19,035
(−) Net Interest	1,619	1,641	1,732	1,766	1,876	1,972	2,065	2,153	2,235	2,312	2,370
(+) D&A	1,776	1,892	1,990	2,036	2,048	2,076	2,161	2,263	2,364	2,477	2,539
EBITDA	16,401	16,715	17,632	17,983	18,996	19,890	20,810	21,707	22,556	23,360	23,944

(−) Tax	2,421	2,454	2,589	2,640	2,805	2,949	3,087	3,218	3,342	3,456	—
(−) CapEx	1,947	1,973	2,082	2,123	2,256	2,371	2,483	2,588	2,688	2,780	—
(−) ΔWC	7,952	8	34	13	41	36	34	33	31	28	—
Free Cash Flow (FCF)	4,082	12,280	12,927	13,208	13,893	14,535	15,206	15,868	16,495	17,095	—

Peers' EBITDA Multiple											15.0x
Terminal Value											360,112
WACC / Discount Rate	6.97%

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	3,947	11,100	10,924	10,435	10,261	10,036	9,816	9,576	9,306	9,016	183,647

Enterprise Value	278,063
Projection Period	94,416	34.0%
Terminal Value	183,647	66.0%

(−) Current Net Debt	35,222
Equity Value	242,841
(÷) Outstanding Shares	4313M
Fair Price	$56	-28.2%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	11.0x	13.0x	15.0x	17.0x	19.0x
5.0%	$54	$61	$67	$74	$81
6.0%	$49	$55	$62	$68	$74
7.0%	$45	$51	$56	$62	$68
8.0%	$41	$46	$52	$57	$62
9.0%	$38	$42	$47	$52	$57

Current price: $78.42. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$68.68

Market Price

$78.42

Upside / Downside

-12.4%

Verdict

Overvalued

Using the industry peer median P/E Multiples multiple (trailing + forward), The Coca-Cola Company (KO) has a fair value of $68.68 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	338,225	25.8x	24.1x
The Procter & Gamble CompanyPG	340,115	22.4x	21.1x
Philip Morris International Inc.PM	266,685	23.6x	20.4x
PepsiCo, Inc.PEP	213,639	26.0x	18.0x
Anheuser-Busch InBev SA/NVBUD	154,679	23.1x	18.7x
Monster Beverage CorporationMNST	84,384	44.5x	38.4x
Keurig Dr Pepper Inc.KDP	39,225	18.8x	15.1x
Coca-Cola FEMSA, S.A.B. de C.V.KOF	22,221	18.6x	—
Coca-Cola Consolidated, Inc.COKE	14,591	25.6x	52.8x
Industry Median		23.3x	20.4x
(*) Profit after tax		13,107	14,057
Equity Value		305,719	286,731
(/) Outstanding shares		4,313	4,313
Fair Price		$71	$66

Selected Fair Value (avg of trailing + forward)

$68.68

-12.4%

Fair Value

$58.92

Market Price

$78.42

Upside / Downside

-24.9%

Verdict

Overvalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), The Coca-Cola Company (KO) has a fair value of $58.92 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	338,225	20.0x	19.5x
The Procter & Gamble CompanyPG	340,115	15.3x	14.8x
Philip Morris International Inc.PM	266,685	17.8x	16.6x
PepsiCo, Inc.PEP	213,639	16.4x	15.5x
Anheuser-Busch InBev SA/NVBUD	154,679	10.4x	9.7x
Monster Beverage CorporationMNST	84,384	31.6x	28.4x
Keurig Dr Pepper Inc.KDP	39,225	13.0x	14.1x
Coca-Cola FEMSA, S.A.B. de C.V.KOF	22,221	8.9x	—
Coca-Cola Consolidated, Inc.COKE	14,591	14.8x	19.6x
Industry Median		15.0x	15.5x
(*) EBITDA		18,702	19,155
= Enterprise Value		281,329	297,400
(-) Net Debt		35,222	35,222
Equity Value		246,107	262,178
(/) Outstanding shares		4,313	4,313
Fair Price		$57	$61

Selected Fair Value (avg of trailing + forward)

$58.92

-24.9%

Fair Value

$31.25

Market Price

$78.42

Upside / Downside

-60.1%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), The Coca-Cola Company (KO) has a fair value of $31.25 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	338,225	7.8x	7.6x
The Procter & Gamble CompanyPG	340,115	4.3x	4.2x
Philip Morris International Inc.PM	266,685	7.6x	7.1x
PepsiCo, Inc.PEP	213,639	2.7x	2.6x
Anheuser-Busch InBev SA/NVBUD	154,679	3.6x	3.4x
Monster Beverage CorporationMNST	84,384	9.9x	8.9x
Keurig Dr Pepper Inc.KDP	39,225	3.3x	3.6x
Coca-Cola FEMSA, S.A.B. de C.V.KOF	22,221	1.7x	—
Coca-Cola Consolidated, Inc.COKE	14,591	2.4x	3.2x
Industry Median		3.5x	3.6x
(*) Revenue		47,941	49,102
= Enterprise Value		165,494	174,544
(-) Net Debt		35,222	35,222
Equity Value		130,272	139,322
(/) Outstanding shares		4,313	4,313
Fair Price		$30	$32

Selected Fair Value (avg of trailing + forward)

$31.25

-60.1%

PEG Fair Value

Fair Value

$30.08

Market Price

$78.42

Upside / Downside

-61.6%

Verdict

Overvalued

Using the PEG framework with analyst consensus forward EPS growth of 9.2% plus 2.6% dividend yield, the company has a fair value of $30.08 based on NTM EPS (FY2026) of $3.26. The current PEG ratio is 2.61.

PEG Ratio

2.61Expensive

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 24.1 ÷ (6.6% + 2.6%) = 2.61

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	+2.6%
Adjusted Growth (clamped 8–25%)	9.2%
Fair P/E	9.2x
NTM EPS (FY2026)	$3.26
Fair Value	$30.08

Growth Analysis

Forward GrowthActive

Period	EPS Est.	Growth	Analysts
FY2025 (actual)	$3.04	—	—
FY2026E	$3.26	+7.2%	14
FY2027E	$3.48	+6.8%	15
FY2028E	$3.71	+6.6%	11
FY2029E	$3.93	+6.0%	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

$28.58

Market Price

$78.42

Upside / Downside

-63.6%

Verdict

Overvalued

Using the Earnings Power Value framework with a WACC of 7.0% and normalized earnings of $11.0B, the company has a fair value of $28.58 per share. The EPV range is $22.07 – $38.66 based on WACC sensitivity (5.5% – 8.5%).

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	11,039	11,039	11,039
(/) WACC	8.5%	7.0%	5.5%
Enterprise Value	130,396	158,475	201,965
(-) Net debt	35,222	35,222	35,222
Equity Value	95,174	123,253	166,743
(/) Outstanding shares	4,313	4,313	4,313
Fair Price	$22.07	$28.58	$38.66

Dividend Discount Model

Fair Value

$48.15

Market Price

$78.42

Upside / Downside

-38.6%

Verdict

Overvalued

Using the Two-Stage Dividend Discount Model with a Cost of Equity of 7.5% and projected dividend growth of 5.8%, the fair value is $48.15 per share. The DDM range is $31.46 – $88.13 based on sensitivity analysis across Cost of Equity and growth rate assumptions.

Dividend Profile

Current DPS

$2.04

Dividend Yield

2.60%

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	$2.15	5.8%	0.9302	$2.00
2027	$2.28	5.8%	0.8653	$1.97
2028	$2.41	5.8%	0.8049	$1.94
2029	$2.55	5.8%	0.7487	$1.91
2030	$2.69	5.8%	0.6965	$1.88
Terminal Value	$2.76 DPS	2.5%		$38.45

PV of Projected Dividends$9.70

PV of Terminal Value$38.45

Fair Value per Share$48.15

Sensitivity Analysis

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

Ke \ Growth	3.8%	4.8%	5.8%	6.8%	7.8%
5.5%	$74	$77	$81	$84	$88
6.5%	$55	$58	$60	$63	$66
7.5%	$44	$46	$48	$50	$52
8.5%	$37	$38	$40	$42	$44
9.5%	$31	$33	$34	$36	$37

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.