KO
Coca-Cola Company (The)Consumer Defensive / Beverages - Non-AlcoholicINTACTThe Coca-Cola Company, a beverage company, manufactures and sells various nonalcoholic beverages in the United States and internationally. The company provides Trademark Coca-Cola, sparkling soft drinks and flavors; water, sports, coffee, and tea; juice, value-added dairy, and plant-based beverages; and emerging beverages. It also offers beverage concentrates and syrups, as well as fountain syrups to fountain retailers comprising restaurants and convenience stores. The company sells its products under the Coca-Cola, Diet Coke/Coca-Cola Light, Coca-Cola Zero Sugar, caffeine free Diet Coke, Cherry Coke, Fanta, Sprite, Simply, Fanta Orange, Fanta Zero Orange, Fanta Zero Sugar, Fanta Apple, Sprite Zero Sugar, Simply Orange, Simply Apple, Simply Grapefruit, Fresca, Schweppes, Thums Up, Aquarius, Ayataka, BODYARMOR, Ciel, Costa, Crystal, Dasani, Fuze Tea, Georgia, glacéau smartwater, glacéau vitaminwater, Gold Peak, I LOHAS, Powerade, Topo Chico, Core Power, Del Valle, fairlife, innocent, Maaza, Minute Maid, Minute Maid Pulpy, Santa Clara, and dogadan brands. It operates through a network of independent bottling partners, distributors, wholesalers, and retailers, as well as through bottling and distribution operators. The Coca-Cola Company was founded in 1886 and is headquartered in Atlanta, Georgia.
Price vs. Intrinsic Value Corridor
Overvalued vs DCF ($31.45)Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.
2-Stage Discounted Cash Flow (DCF) Workbench
Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.
| Year | Yr 1 | Yr 2 | Yr 3 | Yr 4 | Yr 5 | Yr 6 | Yr 7 | Yr 8 | Yr 9 | Yr 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Projected FCF ($M) | $6,132 | $7,205 | $8,466 | $9,948 | $11,689 | $12,215 | $12,765 | $13,339 | $13,939 | $14,567 |
| Present Value (PV) | $5,626 | $6,065 | $6,538 | $7,047 | $7,597 | $7,283 | $6,983 | $6,694 | $6,418 | $6,153 |
Benjamin Graham & Buffett Value Models
Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.
Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.
Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.
True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.
Reverse DCF: Market Growth Expectation
SPECULATIVE BARRIERAt the current price of $88.29, the market is assuming the business will compound Free Cash Flow at 22.9% per year for the next decade with a 9% hurdle rate.
Surveil KO with Mathematical Margin of Safety Rules
Set non-negotiable floor rules for Coca-Cola Company (The). If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.
ROIC > 15% • Margin > 15% • D/E < 0.5x
Current Margin 34.9% • Floor > 10%
Altman-Z > 2.6 • Current Ratio > 1.5x
Frequently Asked Questions: Coca-Cola Company (The) (KO) Intrinsic Valuation
Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Coca-Cola Company (The).
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