Money and Finance
Throughout February we had fourth quarter and full year earnings releases from the three major players in the non-alcoholic beverage industry. As the new data points rolled in I figured it was time to update the valuations on the Coca-Cola Company (KO), Dr. Pepper Snapple Group, Inc. (DPS) and PepsiCo. Inc. (PEP). Each company struggled during 2013 with declining sales volumes in the United States, but were also able to give owners a dividend increase. I want to take a look at a few metrics to see which company might have the best relative valuation out of the three.
As part of my quantitative analysis for any company that I want to invest in, I calculate a target entry price. The target entry price is based off several valuation methods including discounted earnings, Graham Number, high dividend yield, low P/E ratio, low P/S ratio, Gordon Growth model and the dividend discount model. The idea is to try and come up with a target entry price as well as fair value and overvalue price points. My partner and I are currently developing analysis tools and we hope to get the first set of tools out over the next month.
Click here to read the rest of the article.
- Valuation Of Pepsico Inc. - The Long Case Looks Strong
Last week management of PepsiCo. Inc. (PEP) announced earnings for 4Q and full year 2013. The results were fairly mixed with revenue increasing around 1% over 2012. North American soda consumption continues to be a drag on the growth of the...
- 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...
- Stock Valuation Method - Dividend Discount Model
This is the 6th part in my stock valuation series. I've previously covered the Graham Number, average dividend yield, average price-to-earnings ratio, average price-to-sales ratio, and Discounted Cash Flow analysis. Today I'll cover the dividend...
- Stock Valuation Method - Average P/e Ratio
In an attempt to determine the fair value or a target entry price for a stock, it's best to use multiple methods to compare across different metrics. This is the 3rd part in my series on stock valuation methods in which I've already covered...
- Walmart Stock Analysis
I ran Walmart through my screening process and was pretty intrigued by the results. Walmart is currently trading at $59.76. DCF Valuation: Analysts expect Walmart to grow 9.10% per year for the next 5 years and I've assumed that after that they will...
Money and Finance
U.S. Beverage Valuation Wrap Up
Throughout February we had fourth quarter and full year earnings releases from the three major players in the non-alcoholic beverage industry. As the new data points rolled in I figured it was time to update the valuations on the Coca-Cola Company (KO), Dr. Pepper Snapple Group, Inc. (DPS) and PepsiCo. Inc. (PEP). Each company struggled during 2013 with declining sales volumes in the United States, but were also able to give owners a dividend increase. I want to take a look at a few metrics to see which company might have the best relative valuation out of the three.
As part of my quantitative analysis for any company that I want to invest in, I calculate a target entry price. The target entry price is based off several valuation methods including discounted earnings, Graham Number, high dividend yield, low P/E ratio, low P/S ratio, Gordon Growth model and the dividend discount model. The idea is to try and come up with a target entry price as well as fair value and overvalue price points. My partner and I are currently developing analysis tools and we hope to get the first set of tools out over the next month.
Click here to read the rest of the article.
- Valuation Of Pepsico Inc. - The Long Case Looks Strong
Last week management of PepsiCo. Inc. (PEP) announced earnings for 4Q and full year 2013. The results were fairly mixed with revenue increasing around 1% over 2012. North American soda consumption continues to be a drag on the growth of the...
- 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...
- Stock Valuation Method - Dividend Discount Model
This is the 6th part in my stock valuation series. I've previously covered the Graham Number, average dividend yield, average price-to-earnings ratio, average price-to-sales ratio, and Discounted Cash Flow analysis. Today I'll cover the dividend...
- Stock Valuation Method - Average P/e Ratio
In an attempt to determine the fair value or a target entry price for a stock, it's best to use multiple methods to compare across different metrics. This is the 3rd part in my series on stock valuation methods in which I've already covered...
- Walmart Stock Analysis
I ran Walmart through my screening process and was pretty intrigued by the results. Walmart is currently trading at $59.76. DCF Valuation: Analysts expect Walmart to grow 9.10% per year for the next 5 years and I've assumed that after that they will...