KO
The Coca-Cola Company
$83.08
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Overvalued
Trading 12.1% above fair value
You pay
$83.08
Bear
$63.52
Fair
$74.12
Bull
$84.71
Bear
$63.52
-23.5%
$3.28 × 18x P/E
Fair
$74.12
-10.8%
$3.28 × 21x P/E
Bull
$84.71
+2.0%
$3.28 × 24x P/E
Key Value Driver
Normalized P/E multiple (21x base case)
Implied Market Multiple
25.3x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $86.38 from 48 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $74.12 per share.
Warnings
Dividend-based valuation: $52.37 (below our primary estimate by 24%). Large gaps may signal the dividend doesn't reflect full earning power.
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