Intrinsic value of Coca-Cola Company (The) - KO

Previous Close

$52.12

  Intrinsic Value

$13.00

stock screener

  Rating & Target

str. sell

-75%

Previous close

$52.12

 
Intrinsic value

$13.00

 
Up/down potential

-75%

 
Rating

str. sell

We calculate the intrinsic value of KO 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 0001), $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 222.8

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  32,493
  33,240
  34,095
  35,054
  36,117
  37,283
  38,552
  39,927
  41,407
  42,997
  44,697
  46,511
  48,442
  50,495
  52,673
  54,981
  57,425
  60,009
  62,739
  65,622
  68,663
  71,871
  75,252
  78,815
  82,567
  86,518
  90,676
  95,051
  99,655
  104,497
Variable operating expenses, $m
  25,473
  26,019
  26,643
  27,344
  28,121
  28,973
  29,901
  30,905
  31,987
  33,148
  32,664
  33,989
  35,401
  36,901
  38,493
  40,180
  41,965
  43,854
  45,849
  47,955
  50,178
  52,523
  54,993
  57,597
  60,339
  63,226
  66,265
  69,462
  72,826
  76,365
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
  25,473
  26,019
  26,643
  27,344
  28,121
  28,973
  29,901
  30,905
  31,987
  33,148
  32,664
  33,989
  35,401
  36,901
  38,493
  40,180
  41,965
  43,854
  45,849
  47,955
  50,178
  52,523
  54,993
  57,597
  60,339
  63,226
  66,265
  69,462
  72,826
  76,365
Operating income, $m
  7,021
  7,222
  7,452
  7,710
  7,996
  8,310
  8,652
  9,022
  9,420
  9,848
  12,033
  12,521
  13,041
  13,594
  14,180
  14,802
  15,459
  16,155
  16,890
  17,666
  18,485
  19,349
  20,259
  21,218
  22,228
  23,292
  24,411
  25,589
  26,828
  28,132
EBITDA, $m
  9,481
  9,700
  9,949
  10,229
  10,539
  10,879
  11,250
  11,651
  12,083
  12,546
  13,042
  13,572
  14,135
  14,734
  15,370
  16,043
  16,756
  17,510
  18,307
  19,148
  20,036
  20,972
  21,959
  22,998
  24,093
  25,246
  26,459
  27,736
  29,079
  30,492
Interest expense (income), $m
  663
  2,352
  2,417
  2,495
  2,584
  2,683
  2,794
  2,915
  3,047
  3,189
  3,343
  3,508
  3,685
  3,873
  4,074
  4,287
  4,514
  4,753
  5,007
  5,276
  5,559
  5,859
  6,175
  6,508
  6,859
  7,229
  7,619
  8,030
  8,462
  8,916
  9,394
Earnings before tax, $m
  4,669
  4,805
  4,957
  5,126
  5,313
  5,516
  5,737
  5,975
  6,231
  6,505
  8,525
  8,836
  9,168
  9,520
  9,893
  10,288
  10,706
  11,148
  11,614
  12,107
  12,626
  13,174
  13,751
  14,359
  14,999
  15,672
  16,381
  17,127
  17,912
  18,737
Tax expense, $m
  1,261
  1,297
  1,338
  1,384
  1,434
  1,489
  1,549
  1,613
  1,682
  1,756
  2,302
  2,386
  2,475
  2,570
  2,671
  2,778
  2,891
  3,010
  3,136
  3,269
  3,409
  3,557
  3,713
  3,877
  4,050
  4,232
  4,423
  4,624
  4,836
  5,059
Net income, $m
  3,408
  3,507
  3,619
  3,742
  3,878
  4,027
  4,188
  4,362
  4,549
  4,749
  6,223
  6,450
  6,692
  6,949
  7,222
  7,510
  7,815
  8,138
  8,479
  8,838
  9,217
  9,617
  10,038
  10,482
  10,949
  11,441
  11,958
  12,503
  13,076
  13,678

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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 assets, $m
  79,836
  81,672
  83,771
  86,127
  88,738
  91,603
  94,723
  98,100
  101,738
  105,643
  109,820
  114,277
  119,022
  124,066
  129,418
  135,089
  141,093
  147,442
  154,150
  161,232
  168,706
  176,588
  184,895
  193,648
  202,867
  212,574
  222,791
  233,541
  244,852
  256,748
Adjusted assets (=assets-cash), $m
  79,836
  81,672
  83,771
  86,127
  88,738
  91,603
  94,723
  98,100
  101,738
  105,643
  109,820
  114,277
  119,022
  124,066
  129,418
  135,089
  141,093
  147,442
  154,150
  161,232
  168,706
  176,588
  184,895
  193,648
  202,867
  212,574
  222,791
  233,541
  244,852
  256,748
Revenue / Adjusted assets
  0.407
  0.407
  0.407
  0.407
  0.407
  0.407
  0.407
  0.407
  0.407
  0.407
  0.407
  0.407
  0.407
  0.407
  0.407
  0.407
  0.407
  0.407
  0.407
  0.407
  0.407
  0.407
  0.407
  0.407
  0.407
  0.407
  0.407
  0.407
  0.407
  0.407
Average production assets, $m
  17,026
  17,418
  17,866
  18,368
  18,925
  19,536
  20,201
  20,922
  21,698
  22,530
  23,421
  24,372
  25,384
  26,459
  27,601
  28,810
  30,091
  31,445
  32,875
  34,386
  35,980
  37,660
  39,432
  41,299
  43,265
  45,335
  47,514
  49,807
  52,219
  54,756
Working capital, $m
  3,704
  3,789
  3,887
  3,996
  4,117
  4,250
  4,395
  4,552
  4,720
  4,902
  5,095
  5,302
  5,522
  5,756
  6,005
  6,268
  6,546
  6,841
  7,152
  7,481
  7,828
  8,193
  8,579
  8,985
  9,413
  9,863
  10,337
  10,836
  11,361
  11,913
Total debt, $m
  44,763
  46,201
  47,845
  49,690
  51,734
  53,977
  56,420
  59,064
  61,913
  64,970
  68,241
  71,731
  75,447
  79,396
  83,586
  88,027
  92,728
  97,699
  102,951
  108,497
  114,349
  120,520
  127,025
  133,879
  141,097
  148,697
  156,697
  165,115
  173,971
  183,286
Total liabilities, $m
  62,511
  63,949
  65,593
  67,438
  69,482
  71,725
  74,168
  76,812
  79,661
  82,718
  85,989
  89,479
  93,195
  97,144
  101,334
  105,775
  110,476
  115,447
  120,699
  126,245
  132,097
  138,268
  144,773
  151,627
  158,845
  166,445
  174,445
  182,863
  191,719
  201,034
Total equity, $m
  17,324
  17,723
  18,178
  18,690
  19,256
  19,878
  20,555
  21,288
  22,077
  22,924
  23,831
  24,798
  25,828
  26,922
  28,084
  29,314
  30,617
  31,995
  33,450
  34,987
  36,609
  38,320
  40,122
  42,022
  44,022
  46,129
  48,346
  50,678
  53,133
  55,714
Total liabilities and equity, $m
  79,835
  81,672
  83,771
  86,128
  88,738
  91,603
  94,723
  98,100
  101,738
  105,642
  109,820
  114,277
  119,023
  124,066
  129,418
  135,089
  141,093
  147,442
  154,149
  161,232
  168,706
  176,588
  184,895
  193,649
  202,867
  212,574
  222,791
  233,541
  244,852
  256,748
Debt-to-equity ratio
  2.580
  2.610
  2.630
  2.660
  2.690
  2.720
  2.740
  2.770
  2.800
  2.830
  2.860
  2.890
  2.920
  2.950
  2.980
  3.000
  3.030
  3.050
  3.080
  3.100
  3.120
  3.150
  3.170
  3.190
  3.210
  3.220
  3.240
  3.260
  3.270
  3.290
Adjusted equity ratio
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  3,408
  3,507
  3,619
  3,742
  3,878
  4,027
  4,188
  4,362
  4,549
  4,749
  6,223
  6,450
  6,692
  6,949
  7,222
  7,510
  7,815
  8,138
  8,479
  8,838
  9,217
  9,617
  10,038
  10,482
  10,949
  11,441
  11,958
  12,503
  13,076
  13,678
Depreciation, amort., depletion, $m
  2,461
  2,478
  2,497
  2,519
  2,543
  2,569
  2,598
  2,629
  2,662
  2,698
  1,010
  1,051
  1,094
  1,140
  1,190
  1,242
  1,297
  1,355
  1,417
  1,482
  1,551
  1,623
  1,700
  1,780
  1,865
  1,954
  2,048
  2,147
  2,251
  2,360
Funds from operations, $m
  5,869
  5,985
  6,116
  6,261
  6,421
  6,596
  6,786
  6,991
  7,211
  7,447
  7,232
  7,501
  7,787
  8,090
  8,411
  8,752
  9,112
  9,493
  9,896
  10,320
  10,768
  11,240
  11,738
  12,262
  12,814
  13,395
  14,006
  14,650
  15,327
  16,038
Change in working capital, $m
  73
  85
  97
  109
  121
  133
  145
  157
  169
  181
  194
  207
  220
  234
  248
  263
  279
  295
  311
  329
  347
  366
  385
  406
  428
  450
  474
  499
  525
  552
Cash from operations, $m
  5,796
  5,900
  6,018
  6,152
  6,300
  6,463
  6,641
  6,834
  7,042
  7,266
  7,039
  7,294
  7,566
  7,856
  8,163
  8,489
  8,834
  9,199
  9,584
  9,991
  10,421
  10,874
  11,352
  11,856
  12,386
  12,945
  13,532
  14,151
  14,802
  15,486
Maintenance CAPEX, $m
  -720
  -734
  -751
  -770
  -792
  -816
  -842
  -871
  -902
  -935
  -971
  -1,010
  -1,051
  -1,094
  -1,140
  -1,190
  -1,242
  -1,297
  -1,355
  -1,417
  -1,482
  -1,551
  -1,623
  -1,700
  -1,780
  -1,865
  -1,954
  -2,048
  -2,147
  -2,251
New CAPEX, $m
  -332
  -392
  -448
  -503
  -557
  -611
  -665
  -720
  -776
  -833
  -891
  -951
  -1,012
  -1,076
  -1,141
  -1,210
  -1,280
  -1,354
  -1,431
  -1,511
  -1,594
  -1,681
  -1,772
  -1,867
  -1,966
  -2,070
  -2,179
  -2,293
  -2,412
  -2,537
Cash from investing activities, $m
  -1,052
  -1,126
  -1,199
  -1,273
  -1,349
  -1,427
  -1,507
  -1,591
  -1,678
  -1,768
  -1,862
  -1,961
  -2,063
  -2,170
  -2,281
  -2,400
  -2,522
  -2,651
  -2,786
  -2,928
  -3,076
  -3,232
  -3,395
  -3,567
  -3,746
  -3,935
  -4,133
  -4,341
  -4,559
  -4,788
Free cash flow, $m
  4,744
  4,774
  4,820
  4,879
  4,951
  5,036
  5,134
  5,243
  5,364
  5,498
  5,177
  5,334
  5,504
  5,686
  5,881
  6,090
  6,312
  6,548
  6,798
  7,064
  7,345
  7,643
  7,957
  8,289
  8,640
  9,010
  9,399
  9,810
  10,243
  10,699
Issuance/(repayment) of debt, $m
  1,208
  1,438
  1,643
  1,845
  2,045
  2,243
  2,443
  2,644
  2,849
  3,057
  3,271
  3,490
  3,716
  3,949
  4,190
  4,441
  4,701
  4,971
  5,252
  5,546
  5,852
  6,171
  6,505
  6,854
  7,218
  7,600
  8,000
  8,418
  8,856
  9,315
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
Cash from financing (excl. dividends), $m  
  1,208
  1,438
  1,643
  1,845
  2,045
  2,243
  2,443
  2,644
  2,849
  3,057
  3,271
  3,490
  3,716
  3,949
  4,190
  4,441
  4,701
  4,971
  5,252
  5,546
  5,852
  6,171
  6,505
  6,854
  7,218
  7,600
  8,000
  8,418
  8,856
  9,315
Total cash flow (excl. dividends), $m
  5,953
  6,212
  6,463
  6,724
  6,996
  7,280
  7,576
  7,887
  8,213
  8,555
  8,447
  8,824
  9,220
  9,635
  10,072
  10,530
  11,012
  11,519
  12,051
  12,610
  13,197
  13,814
  14,462
  15,143
  15,858
  16,610
  17,399
  18,228
  19,099
  20,014
Retained Cash Flow (-), $m
  -343
  -398
  -455
  -511
  -567
  -622
  -677
  -733
  -789
  -847
  -906
  -967
  -1,030
  -1,094
  -1,161
  -1,231
  -1,303
  -1,378
  -1,456
  -1,537
  -1,622
  -1,710
  -1,803
  -1,899
  -2,001
  -2,106
  -2,217
  -2,333
  -2,454
  -2,582
Prev. year cash balance distribution, $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 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
  5,609
  5,814
  6,008
  6,213
  6,429
  6,658
  6,899
  7,154
  7,424
  7,708
  7,541
  7,857
  8,190
  8,541
  8,910
  9,300
  9,710
  10,141
  10,595
  11,073
  11,575
  12,104
  12,659
  13,244
  13,858
  14,503
  15,182
  15,895
  16,645
  17,432
Discount rate, %
  6.80
  7.14
  7.50
  7.87
  8.27
  8.68
  9.11
  9.57
  10.05
  10.55
  11.08
  11.63
  12.21
  12.82
  13.46
  14.14
  14.84
  15.59
  16.37
  17.18
  18.04
  18.94
  19.89
  20.89
  21.93
  23.03
  24.18
  25.39
  26.66
  27.99
PV of cash for distribution, $m
  5,252
  5,065
  4,836
  4,588
  4,322
  4,041
  3,747
  3,444
  3,136
  2,827
  2,375
  2,098
  1,831
  1,577
  1,340
  1,121
  923
  748
  595
  464
  355
  266
  195
  140
  97
  66
  44
  28
  18
  11
Current shareholders' claim on cash, %
  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

The Coca-Cola Company is a beverage company. The Company owns or licenses and markets non-alcoholic beverage brands, primarily sparkling beverages and a range of still beverages, such as waters, flavored waters and enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, sports drinks, dairy and energy drinks. The Company's segments include Europe, Middle East and Africa; Latin America; North America; Asia Pacific; Bottling Investments, and Corporate. The Company owns and markets a range of non-alcoholic sparkling beverage brands, including Coca-Cola, Diet Coke, Fanta and Sprite. The Company owns or licenses and markets over 500 non-alcoholic beverage brands. The Company markets, manufactures and sells beverage concentrates, which are referred to as beverage bases, and syrups, including fountain syrups, and finished sparkling and still beverages.

FINANCIAL RATIOS  of  Coca-Cola Company (The) (KO)

Valuation Ratios
P/E Ratio 34.2
Price to Sales 5.3
Price to Book 9.7
Price to Tangible Book
Price to Cash Flow 25.4
Price to Free Cash Flow 34.2
Growth Rates
Sales Growth Rate -5.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -11.4%
Cap. Spend. - 3 Yr. Gr. Rate -2.4%
Financial Strength
Quick Ratio 1
Current Ratio 0.1
LT Debt to Equity 128.7%
Total Debt to Equity 198.2%
Interest Coverage 13
Management Effectiveness
Return On Assets 8%
Ret/ On Assets - 3 Yr. Avg. 8.2%
Return On Total Capital 9.4%
Ret/ On T. Cap. - 3 Yr. Avg. 9.9%
Return On Equity 26.9%
Return On Equity - 3 Yr. Avg. 25.2%
Asset Turnover 0.5
Profitability Ratios
Gross Margin 60.7%
Gross Margin - 3 Yr. Avg. 60.8%
EBITDA Margin 25.3%
EBITDA Margin - 3 Yr. Avg. 26.1%
Operating Margin 17.6%
Oper. Margin - 3 Yr. Avg. 17.8%
Pre-Tax Margin 19.4%
Pre-Tax Margin - 3 Yr. Avg. 20.5%
Net Profit Margin 15.6%
Net Profit Margin - 3 Yr. Avg. 15.9%
Effective Tax Rate 19.5%
Eff/ Tax Rate - 3 Yr. Avg. 22.1%
Payout Ratio 92.6%

KO stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the KO stock intrinsic value calculation we used $31856 million for the last fiscal year's total revenue generated by Coca-Cola Company (The). The default revenue input number comes from 0001 income statement of Coca-Cola Company (The). 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 KO stock valuation model: a) initial revenue growth rate of 2% 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 6.8%, whose default value for KO is calculated based on our internal credit rating of Coca-Cola Company (The), 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 Company (The).
    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 KO stock the variable cost ratio is equal to 78.5%.

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 KO 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 5.4% for Coca-Cola Company (The).

Corporate tax rate of 27% is the nominal tax rate for Coca-Cola Company (The). 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 KO 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 KO are equal to 52.4%.

Life of production assets of 23.2 years is the average useful life of capital assets used in Coca-Cola Company (The) 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 KO is equal to 11.4%. 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 - $16981 million for Coca-Cola Company (The) - 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 4275.055 million for Coca-Cola Company (The) 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 Company (The) at the current share price and the inputted number of shares is $222.8 billion.

RELATED COMPANIES Price Int.Val. Rating
COKE Coca-Cola Cons 304.65 142.45  sell
PEP Pepsico, Inc. 133.28 87.80  sell
KOF Coca Cola Fems 62.07 130.68  str.buy

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