COKE
Coca-Cola Consolidated, Inc.
$175.53
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Overvalued
Trading 10.9% above fair value
You pay
$175.53
Bear
$135.63
Fair
$158.24
Bull
$180.84
Bear
$135.63
-22.7%
$7.54 × 18x P/E
Fair
$158.24
-9.9%
$7.54 × 21x P/E
Bull
$180.84
+3.0%
$7.54 × 24x P/E
Key Value Driver
Normalized P/E multiple (21x base case)
Implied Market Multiple
23.3x
Summary
Applying a 21x P/E to adjusted EPS of $7.54, the base-case value is $158.24 per share.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples