Money and Finance
I can't believe I hadn't posted this before because Coca-Cola (KO) is one of my core holdings that I wish I could add more to and I really enjoy their product. Coca-Cola closed trading on Friday, November 23rd at $37.93.
Company Background:
The Coca-Cola Company, a beverage company, engages in the manufacture, marketing, and sale of nonalcoholic beverages worldwide. The company primarily offers sparkling beverages and still beverages. Its sparkling beverages include nonalcoholic ready-to-drink beverages with carbonation, such as carbonated energy drinks, and carbonated waters and flavored waters. The companys still beverages comprise nonalcoholic beverages without carbonation, such as noncarbonated waters, flavored waters and enhanced waters, noncarbonated energy drinks, juices and juice drinks, ready-to-drink teas and coffees, and sports drinks. It also provides flavoring ingredients, sweeteners, powders for purified water products, beverage ingredients, and fountain syrups. The Coca-Cola Company sells its products primarily under the Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitaminwater, Powerade, Minute Maid, Simply, Georgia, and Del Valle brand names. The company offers its beverage products through company-owned or controlled bottling and distribution operators, as well as through independently owned bottling partners, distributors, wholesalers, and retailers.
DCF Valuation:
Analysts expect Coca-Cola to grow earnings 8.20% per year for the next five years and I've assumed they can continue to grow at 3.50% per year thereafter, slightly above the long term inflation rate. Running these numbers through a DCF analysis with a 10% discount rate yields a fair value price of $37.40. This means that at $37.93 the shares are overvalued by 1.4%.
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Money and Finance
Coca-Cola Stock Analysis
I can't believe I hadn't posted this before because Coca-Cola (KO) is one of my core holdings that I wish I could add more to and I really enjoy their product. Coca-Cola closed trading on Friday, November 23rd at $37.93.
Company Background:
The Coca-Cola Company, a beverage company, engages in the manufacture, marketing, and sale of nonalcoholic beverages worldwide. The company primarily offers sparkling beverages and still beverages. Its sparkling beverages include nonalcoholic ready-to-drink beverages with carbonation, such as carbonated energy drinks, and carbonated waters and flavored waters. The companys still beverages comprise nonalcoholic beverages without carbonation, such as noncarbonated waters, flavored waters and enhanced waters, noncarbonated energy drinks, juices and juice drinks, ready-to-drink teas and coffees, and sports drinks. It also provides flavoring ingredients, sweeteners, powders for purified water products, beverage ingredients, and fountain syrups. The Coca-Cola Company sells its products primarily under the Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitaminwater, Powerade, Minute Maid, Simply, Georgia, and Del Valle brand names. The company offers its beverage products through company-owned or controlled bottling and distribution operators, as well as through independently owned bottling partners, distributors, wholesalers, and retailers.
DCF Valuation:
Analysts expect Coca-Cola to grow earnings 8.20% per year for the next five years and I've assumed they can continue to grow at 3.50% per year thereafter, slightly above the long term inflation rate. Running these numbers through a DCF analysis with a 10% discount rate yields a fair value price of $37.40. This means that at $37.93 the shares are overvalued by 1.4%.
Read more »
- Does The Coca-cola Company Still Have The Recipe For Out-sized Returns?
There's no mistake that one of the greatest wealth creators of the last century is The Coca-Cola Company (NYSE:KO). With 20 different beverage brands generating over a billion dollars in annual revenues they are the envy of plenty of companies. Especially...
- The Long Case For The Coca-cola Company
The Coca-Cola Company (KO) will be announcing earnings on Tuesday, so what better time than the present to get an update on its current valuation. There's not much needed to be said about a company as great as Coca-Cola. It has the number...
- Starbucks (sbux) Dividend Stock Analysis
I've been trying to take a look at some of the next potential dividend growth champions that can string off a 40+ year record such as Johnson & Johnson or Coca-Cola or Proctor & Gamble. I want the core of my portfolio to be made up of the...
- Pepsi Stock Analysis
It's been a while since I've posted a stock analysis so today we'll look at the other beverage giant PepsiCo (PEP). Pepsi was trading for $69.44 at mid-day yesterday. Company Background: PepsiCo, Inc. engages in the manufacture and sale...
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Earlier this week I purchased shares of the soft drink giant Coca-Cola (KO). This is my first position in the stock and I managed to purchase 32 shares at $38.00 which is about a little over a dollar away from a 1 year low. The stock has been under some...