KO
The Coca-Cola Company
$87.97
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 37.8% above fair value
You pay
$87.97
Bear
$54.72
Fair
$63.84
Bull
$72.96
Bear
$54.72
-37.8%
$3.04 × 18x P/E
Fair
$63.84
-27.4%
$3.04 × 21x P/E
Bull
$72.96
-17.1%
$3.04 × 24x P/E
Adjust Assumptions
21.0x
3.04$
Key Value Driver
Normalized P/E multiple (21x base case)
Implied Market Multiple
28.9x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (48 analysts)
$95.75
Divergence from AlphaVal
33%
Summary
Applying a 21x P/E to adjusted EPS of $3.04, the base-case value is $63.84 per share. DDM cross-check: $52.32.
Warnings
Wall Street's average price target is $95.75 (from 48 analysts). Our estimate is 33% below the consensus -- consider that gap carefully.
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