Intrinsic value of Coca-Cola Bottling Consolidated - COKE

Previous Close

$213.36

  Intrinsic Value

$690.33

stock screener

  Rating & Target

str. buy

+224%

  Value-price divergence*

+492%

Previous close

$213.36

 
Intrinsic value

$690.33

 
Up/down potential

+224%

 
Rating

str. buy

 
Value-price divergence*

+492%

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of COKE stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2017), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 1.9

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2017(a)
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  36.86
  38.60
  35.24
  32.22
  29.49
  27.04
  24.84
  22.86
  21.07
  19.46
  18.02
  16.72
  15.54
  14.49
  13.54
  12.69
  11.92
  11.23
  10.60
  10.04
  9.54
  9.08
  8.68
  8.31
  7.98
  7.68
  7.41
  7.17
  6.95
  6.76
  6.58
Revenue, $m
  3,156
  4,374
  5,916
  7,821
  10,128
  12,868
  16,064
  19,736
  23,894
  28,545
  33,688
  39,319
  45,431
  52,013
  59,056
  66,549
  74,480
  82,841
  91,625
  100,827
  110,445
  120,479
  130,932
  141,811
  153,125
  164,885
  177,106
  189,806
  203,005
  216,725
  230,991
Variable operating expenses, $m
 
  4,111
  5,554
  7,339
  9,499
  12,064
  15,057
  18,495
  22,389
  26,744
  31,560
  36,818
  42,541
  48,706
  55,301
  62,316
  69,743
  77,573
  85,798
  94,415
  103,421
  112,817
  122,605
  132,793
  143,387
  154,399
  165,843
  177,736
  190,095
  202,943
  216,302
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  3,027
  4,111
  5,554
  7,339
  9,499
  12,064
  15,057
  18,495
  22,389
  26,744
  31,560
  36,818
  42,541
  48,706
  55,301
  62,316
  69,743
  77,573
  85,798
  94,415
  103,421
  112,817
  122,605
  132,793
  143,387
  154,399
  165,843
  177,736
  190,095
  202,943
  216,302
Operating income, $m
  129
  264
  362
  483
  630
  804
  1,007
  1,241
  1,505
  1,801
  2,128
  2,500
  2,889
  3,308
  3,756
  4,232
  4,736
  5,268
  5,827
  6,412
  7,024
  7,662
  8,327
  9,018
  9,738
  10,486
  11,263
  12,071
  12,910
  13,783
  14,690
EBITDA, $m
  246
  427
  577
  763
  988
  1,256
  1,568
  1,926
  2,332
  2,785
  3,287
  3,837
  4,433
  5,075
  5,763
  6,494
  7,268
  8,084
  8,941
  9,839
  10,777
  11,756
  12,776
  13,838
  14,942
  16,089
  17,282
  18,521
  19,809
  21,148
  22,540
Interest expense (income), $m
  35
  41
  77
  122
  178
  247
  327
  422
  530
  653
  790
  942
  1,108
  1,288
  1,482
  1,690
  1,911
  2,145
  2,392
  2,651
  2,923
  3,206
  3,502
  3,811
  4,132
  4,466
  4,813
  5,173
  5,548
  5,937
  6,342
Earnings before tax, $m
  93
  223
  285
  361
  451
  557
  680
  819
  975
  1,148
  1,338
  1,559
  1,781
  2,020
  2,273
  2,542
  2,825
  3,123
  3,435
  3,761
  4,101
  4,455
  4,824
  5,208
  5,606
  6,020
  6,450
  6,897
  7,362
  7,845
  8,348
Tax expense, $m
  36
  60
  77
  97
  122
  150
  184
  221
  263
  310
  361
  421
  481
  545
  614
  686
  763
  843
  927
  1,015
  1,107
  1,203
  1,303
  1,406
  1,514
  1,625
  1,742
  1,862
  1,988
  2,118
  2,254
Net income, $m
  50
  163
  208
  263
  329
  407
  496
  598
  712
  838
  977
  1,138
  1,300
  1,474
  1,660
  1,856
  2,062
  2,280
  2,508
  2,746
  2,994
  3,252
  3,522
  3,802
  4,092
  4,395
  4,709
  5,035
  5,374
  5,727
  6,094

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  22
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  2,449
  3,365
  4,551
  6,017
  7,791
  9,898
  12,357
  15,181
  18,380
  21,958
  25,914
  30,245
  34,947
  40,010
  45,428
  51,191
  57,292
  63,724
  70,481
  77,559
  84,958
  92,676
  100,717
  109,085
  117,788
  126,834
  136,236
  146,005
  156,158
  166,712
  177,686
Adjusted assets (=assets-cash), $m
  2,427
  3,365
  4,551
  6,017
  7,791
  9,898
  12,357
  15,181
  18,380
  21,958
  25,914
  30,245
  34,947
  40,010
  45,428
  51,191
  57,292
  63,724
  70,481
  77,559
  84,958
  92,676
  100,717
  109,085
  117,788
  126,834
  136,236
  146,005
  156,158
  166,712
  177,686
Revenue / Adjusted assets
  1.300
  1.300
  1.300
  1.300
  1.300
  1.300
  1.300
  1.300
  1.300
  1.300
  1.300
  1.300
  1.300
  1.300
  1.300
  1.300
  1.300
  1.300
  1.300
  1.300
  1.300
  1.300
  1.300
  1.300
  1.300
  1.300
  1.300
  1.300
  1.300
  1.300
  1.300
Average production assets, $m
  1,428
  1,977
  2,674
  3,535
  4,578
  5,816
  7,261
  8,921
  10,800
  12,902
  15,227
  17,772
  20,535
  23,510
  26,693
  30,080
  33,665
  37,444
  41,415
  45,574
  49,921
  54,456
  59,181
  64,099
  69,212
  74,528
  80,052
  85,792
  91,758
  97,960
  104,408
Working capital, $m
  136
  171
  231
  305
  395
  502
  626
  770
  932
  1,113
  1,314
  1,533
  1,772
  2,029
  2,303
  2,595
  2,905
  3,231
  3,573
  3,932
  4,307
  4,699
  5,106
  5,531
  5,972
  6,431
  6,907
  7,402
  7,917
  8,452
  9,009
Total debt, $m
  956
  1,785
  2,843
  4,151
  5,734
  7,613
  9,806
  12,326
  15,179
  18,370
  21,899
  25,763
  29,956
  34,473
  39,306
  44,447
  49,889
  55,626
  61,653
  67,967
  74,566
  81,451
  88,624
  96,088
  103,851
  111,920
  120,306
  129,020
  138,077
  147,491
  157,280
Total liabilities, $m
  2,172
  3,001
  4,059
  5,367
  6,950
  8,829
  11,022
  13,542
  16,395
  19,586
  23,115
  26,979
  31,172
  35,689
  40,522
  45,663
  51,105
  56,842
  62,869
  69,183
  75,782
  82,667
  89,840
  97,304
  105,067
  113,136
  121,522
  130,236
  139,293
  148,707
  158,496
Total equity, $m
  277
  363
  491
  650
  841
  1,069
  1,335
  1,640
  1,985
  2,371
  2,799
  3,266
  3,774
  4,321
  4,906
  5,529
  6,188
  6,882
  7,612
  8,376
  9,175
  10,009
  10,877
  11,781
  12,721
  13,698
  14,713
  15,769
  16,865
  18,005
  19,190
Total liabilities and equity, $m
  2,449
  3,364
  4,550
  6,017
  7,791
  9,898
  12,357
  15,182
  18,380
  21,957
  25,914
  30,245
  34,946
  40,010
  45,428
  51,192
  57,293
  63,724
  70,481
  77,559
  84,957
  92,676
  100,717
  109,085
  117,788
  126,834
  136,235
  146,005
  156,158
  166,712
  177,686
Debt-to-equity ratio
  3.451
  4.910
  5.780
  6.390
  6.810
  7.120
  7.350
  7.520
  7.650
  7.750
  7.820
  7.890
  7.940
  7.980
  8.010
  8.040
  8.060
  8.080
  8.100
  8.110
  8.130
  8.140
  8.150
  8.160
  8.160
  8.170
  8.180
  8.180
  8.190
  8.190
  8.200
Adjusted equity ratio
  0.105
  0.108
  0.108
  0.108
  0.108
  0.108
  0.108
  0.108
  0.108
  0.108
  0.108
  0.108
  0.108
  0.108
  0.108
  0.108
  0.108
  0.108
  0.108
  0.108
  0.108
  0.108
  0.108
  0.108
  0.108
  0.108
  0.108
  0.108
  0.108
  0.108
  0.108

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  50
  163
  208
  263
  329
  407
  496
  598
  712
  838
  977
  1,138
  1,300
  1,474
  1,660
  1,856
  2,062
  2,280
  2,508
  2,746
  2,994
  3,252
  3,522
  3,802
  4,092
  4,395
  4,709
  5,035
  5,374
  5,727
  6,094
Depreciation, amort., depletion, $m
  117
  163
  216
  280
  359
  452
  560
  685
  827
  985
  1,159
  1,336
  1,544
  1,768
  2,007
  2,262
  2,531
  2,815
  3,114
  3,427
  3,753
  4,094
  4,450
  4,819
  5,204
  5,604
  6,019
  6,451
  6,899
  7,365
  7,850
Funds from operations, $m
  97
  326
  424
  544
  688
  859
  1,057
  1,283
  1,538
  1,823
  2,136
  2,474
  2,844
  3,242
  3,667
  4,117
  4,594
  5,095
  5,621
  6,172
  6,747
  7,347
  7,971
  8,621
  9,296
  9,998
  10,728
  11,486
  12,273
  13,092
  13,944
Change in working capital, $m
  -65
  48
  60
  74
  90
  107
  125
  143
  162
  181
  201
  220
  238
  257
  275
  292
  309
  326
  343
  359
  375
  391
  408
  424
  441
  459
  477
  495
  515
  535
  556
Cash from operations, $m
  162
  278
  363
  469
  598
  752
  932
  1,140
  1,376
  1,641
  1,935
  2,255
  2,606
  2,985
  3,392
  3,825
  4,284
  4,769
  5,279
  5,813
  6,372
  6,956
  7,564
  8,197
  8,855
  9,540
  10,251
  10,990
  11,759
  12,557
  13,388
Maintenance CAPEX, $m
  0
  -107
  -149
  -201
  -266
  -344
  -437
  -546
  -671
  -812
  -970
  -1,145
  -1,336
  -1,544
  -1,768
  -2,007
  -2,262
  -2,531
  -2,815
  -3,114
  -3,427
  -3,753
  -4,094
  -4,450
  -4,819
  -5,204
  -5,604
  -6,019
  -6,451
  -6,899
  -7,365
New CAPEX, $m
  -173
  -550
  -697
  -861
  -1,043
  -1,238
  -1,445
  -1,660
  -1,880
  -2,102
  -2,325
  -2,545
  -2,763
  -2,975
  -3,183
  -3,386
  -3,585
  -3,779
  -3,970
  -4,159
  -4,347
  -4,535
  -4,725
  -4,917
  -5,114
  -5,316
  -5,524
  -5,740
  -5,966
  -6,201
  -6,448
Cash from investing activities, $m
  -452
  -657
  -846
  -1,062
  -1,309
  -1,582
  -1,882
  -2,206
  -2,551
  -2,914
  -3,295
  -3,690
  -4,099
  -4,519
  -4,951
  -5,393
  -5,847
  -6,310
  -6,785
  -7,273
  -7,774
  -8,288
  -8,819
  -9,367
  -9,933
  -10,520
  -11,128
  -11,759
  -12,417
  -13,100
  -13,813
Free cash flow, $m
  -290
  -379
  -482
  -593
  -710
  -831
  -950
  -1,066
  -1,174
  -1,273
  -1,359
  -1,436
  -1,493
  -1,534
  -1,559
  -1,568
  -1,562
  -1,541
  -1,507
  -1,460
  -1,402
  -1,333
  -1,256
  -1,170
  -1,078
  -980
  -877
  -769
  -658
  -543
  -426
Issuance/(repayment) of debt, $m
  280
  837
  1,058
  1,308
  1,583
  1,880
  2,193
  2,519
  2,853
  3,191
  3,529
  3,864
  4,194
  4,517
  4,833
  5,141
  5,442
  5,737
  6,027
  6,314
  6,599
  6,885
  7,173
  7,465
  7,763
  8,069
  8,386
  8,714
  9,056
  9,414
  9,789
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  265
  837
  1,058
  1,308
  1,583
  1,880
  2,193
  2,519
  2,853
  3,191
  3,529
  3,864
  4,194
  4,517
  4,833
  5,141
  5,442
  5,737
  6,027
  6,314
  6,599
  6,885
  7,173
  7,465
  7,763
  8,069
  8,386
  8,714
  9,056
  9,414
  9,789
Total cash flow (excl. dividends), $m
  -25
  459
  576
  714
  872
  1,049
  1,243
  1,454
  1,679
  1,918
  2,170
  2,428
  2,701
  2,983
  3,273
  3,572
  3,880
  4,196
  4,520
  4,854
  5,198
  5,552
  5,917
  6,294
  6,685
  7,089
  7,509
  7,945
  8,399
  8,871
  9,363
Retained Cash Flow (-), $m
  -34
  -100
  -128
  -158
  -192
  -228
  -266
  -305
  -345
  -386
  -427
  -468
  -508
  -547
  -585
  -622
  -659
  -695
  -730
  -764
  -799
  -834
  -868
  -904
  -940
  -977
  -1,015
  -1,055
  -1,097
  -1,140
  -1,185
Prev. year cash balance distribution, $m
 
  14
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  372
  448
  556
  681
  821
  978
  1,149
  1,334
  1,532
  1,742
  1,960
  2,193
  2,436
  2,688
  2,950
  3,221
  3,501
  3,791
  4,090
  4,399
  4,718
  5,048
  5,391
  5,745
  6,112
  6,494
  6,890
  7,302
  7,731
  8,178
Discount rate, %
 
  10.00
  10.50
  11.03
  11.58
  12.16
  12.76
  13.40
  14.07
  14.77
  15.51
  16.29
  17.10
  17.96
  18.86
  19.80
  20.79
  21.83
  22.92
  24.07
  25.27
  26.53
  27.86
  29.25
  30.72
  32.25
  33.86
  35.56
  37.33
  39.20
  41.16
PV of cash for distribution, $m
 
  339
  367
  406
  439
  463
  475
  476
  465
  443
  412
  373
  330
  285
  239
  196
  157
  122
  92
  68
  49
  34
  23
  15
  9
  6
  3
  2
  1
  1
  0
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Coca-Cola Bottling Co. Consolidated, together with its subsidiaries, produces, markets, and distributes nonalcoholic beverages, primarily products of The Coca-Cola Company in the United States. It offers sparkling beverages comprising energy drinks; and still beverages, such as bottled water, tea, ready-to-drink coffee, enhanced water, juices, and sports drinks. The company holds cola beverage agreements and allied beverage agreements under which it produces, distributes, and markets sparkling beverage products of The Coca-Cola Company; still beverages of The Coca-Cola Company, such as POWERade, vitaminwater, Minute Maid Juices To Go, and Dasani water products; and various other products, including Dr Pepper, Sundrop, and Monster Energy products. It also produces beverages for other Coca-Cola bottlers; and provides restaurants and other immediate consumption outlets with fountain products. The company sells and distributes its products directly to retail stores and other outlets, including food markets, institutional accounts, and vending machine outlets. The company holds bottling rights from The Coca-Cola Company covering North Carolina, South Carolina, and West Virginia, as well as portions of Alabama, Mississippi, Tennessee, Kentucky, Illinois, Indiana, Virginia, Pennsylvania, Maryland, Georgia, and Florida. Coca-Cola Bottling Co. Consolidated was founded in 1902 and is headquartered in Charlotte, North Carolina.

FINANCIAL RATIOS  of  Coca-Cola Bottling Consolidated (COKE)

Valuation Ratios
P/E Ratio 39.7
Price to Sales 0.6
Price to Book 7.2
Price to Tangible Book
Price to Cash Flow 12.3
Price to Free Cash Flow -180.6
Growth Rates
Sales Growth Rate 36.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 5.5%
Cap. Spend. - 3 Yr. Gr. Rate 23.2%
Financial Strength
Quick Ratio 3
Current Ratio 0
LT Debt to Equity 342.2%
Total Debt to Equity 345.1%
Interest Coverage 4
Management Effectiveness
Return On Assets 3.3%
Ret/ On Assets - 3 Yr. Avg. 3.9%
Return On Total Capital 4.6%
Ret/ On T. Cap. - 3 Yr. Avg. 5.5%
Return On Equity 19.2%
Return On Equity - 3 Yr. Avg. 21.1%
Asset Turnover 1.5
Profitability Ratios
Gross Margin 38.5%
Gross Margin - 3 Yr. Avg. 39.3%
EBITDA Margin 7.8%
EBITDA Margin - 3 Yr. Avg. 8.3%
Operating Margin 4.1%
Oper. Margin - 3 Yr. Avg. 5%
Pre-Tax Margin 2.9%
Pre-Tax Margin - 3 Yr. Avg. 3.5%
Net Profit Margin 1.6%
Net Profit Margin - 3 Yr. Avg. 2%
Effective Tax Rate 38.7%
Eff/ Tax Rate - 3 Yr. Avg. 36.3%
Payout Ratio 18%

COKE stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the COKE stock intrinsic value calculation we used $3156 million for the last fiscal year's total revenue generated by Coca-Cola Bottling Consolidated. The default revenue input number comes from 2017 income statement of Coca-Cola Bottling Consolidated. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our COKE stock valuation model: a) initial revenue growth rate of 38.6% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 10%, whose default value for COKE is calculated based on our internal credit rating of Coca-Cola Bottling Consolidated, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Coca-Cola Bottling Consolidated.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of COKE stock the variable cost ratio is equal to 94.1%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for COKE stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 4.3% for Coca-Cola Bottling Consolidated.

Corporate tax rate of 27% is the nominal tax rate for Coca-Cola Bottling Consolidated. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the COKE stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for COKE are equal to 45.2%.

Life of production assets of 13.3 years is the average useful life of capital assets used in Coca-Cola Bottling Consolidated operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for COKE is equal to 3.9%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $277 million for Coca-Cola Bottling Consolidated - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 9.111 million for Coca-Cola Bottling Consolidated is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Coca-Cola Bottling Consolidated at the current share price and the inputted number of shares is $1.9 billion.

RELATED COMPANIES Price Int.Val. Rating
KO Coca-Cola 46.20 16.80  str.sell
DPS Dr Pepper Snap 92.44 83.56  hold
PEP PepsiCo 119.10 57.05  sell
FIZZ National Bever 113.64 102.10  hold
COT Cott 15.48 21.73  str.buy
KOF Coca-Cola Fems 84.87 171.83  str.buy

COMPANY NEWS

▶ What Is A Brand Really Worth?   [Aug-12-17 12:31PM  Forbes]
▶ Coca-Cola Bottling posts 2Q profit   [Aug-08-17 10:35PM  Associated Press]
▶ Coca-Cola beats analysts' expectations   [Jul-26-17 08:28AM  CNBC Videos]
▶ Orange Juice Continues to Trade Lower This Week   [Jul-13-17 10:15AM  Market Realist]
▶ How Orange Juice Prices Moved Last Week   [Jul-05-17 03:52PM  Market Realist]
▶ How Orange Juice Futures Traded for the Week Ended June 23   [Jun-27-17 07:43AM  Market Realist]
▶ Is the OJ Contango as Bad as It Sounds?   [Jun-20-17 10:49AM  Market Realist]
▶ Coca-Cola Bottling Co. Consolidated of Charlotte to open new Triad facility, add jobs   [May-25-17 03:59PM  American City Business Journals]
▶ Coca-Cola Bottling reports 1Q loss   [May-09-17 07:28PM  Associated Press]
▶ Which Companies Are Now Outperforming 95% Of All Stocks?   [May-01-17 12:25PM  Investor's Business Daily]
▶ Coca-Cola Bottling May Be Ready To Pop Into New High Ground   [12:22PM  Investor's Business Daily]
▶ Coca-Cola Bottling Trades Ex-Dividend Wednesday   [Apr-24-17 08:40AM  Investopedia]
▶ Coca Cola Bottling Shows Some Pop With New And Improved IBD Rating   [Mar-22-17 09:47PM  Investor's Business Daily]
▶ Is Omnicell, Inc. (OMCL) a Good Stock to Buy?   [Dec-20-16 02:51PM  at Insider Monkey]
Stock chart of COKE Financial statements of COKE
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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