The Coca-Cola Company (KO) Stock Valuation — DCF Analysis
Beverages - Non-Alcoholic · NYSE
Current Price
$82.65
Intrinsic Value
Use the calculator below to estimate
COMPETITIVE MOAT
↑Global Brand Recognition
Coca-Cola's iconic brand is instantly recognizable worldwide, fostering strong consumer loyalty and pricing power. This deep-seated familiarity is difficult for competitors to replicate.
↑Extensive Distribution Network
The company possesses an unparalleled global bottling and distribution infrastructure. This allows for efficient product placement and availability, creating a significant barrier to entry.
↑Scale and Bargaining Power
Coca-Cola's immense scale provides significant leverage with suppliers and retailers. This allows for favorable terms and cost efficiencies that smaller rivals cannot match.
INVESTMENT RISKS
↓Shifting Consumer Preferences
Growing health consciousness and demand for healthier alternatives pose a threat. Consumers are increasingly seeking lower-sugar and natural beverage options.
↓Intensifying Competition
The beverage market is highly competitive with numerous global and local players. New entrants and innovative products constantly challenge market share.
↓Regulatory and Environmental Pressures
Increasing scrutiny on sugar content, plastic packaging, and water usage can lead to higher operating costs and potential restrictions. These factors can impact profitability and brand image.
Customize the KO valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for The Coca-Cola Company respond.
Open DCF Calculator for KOCompany Overview
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.
Frequently Asked Questions
What is the intrinsic value of KO?
The intrinsic value of KO depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — a 1% change in WACC typically shifts the estimate by 10-15%, which is why sensitivity analysis is essential. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is KO undervalued?
Whether KO is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $82.65. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
How do I value KO stock using DCF?
To perform a DCF valuation on The Coca-Cola Company: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Beverages - Non-Alcoholic industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting KO's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to KO?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For The Coca-Cola Company, this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Beverages - Non-Alcoholic trends, then discounting those amounts to today's dollars.
How does WACC affect KO stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For KO, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See KO PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Consumer Defensive valuationsDCF and P/E value KO with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.