Coca-Cola Co Valuation: Is The Stock Undervalued?

Image Source: PexelsEach week, we conduct a brief analysis on one of the companies in our screens. This week, we thought we’d take a look at a stock that is not currently in our screens, Coca-Cola Co (KO).

Profile
Founded in 1886, Atlanta-headquartered Coca-Cola is the world’s largest nonalcoholic beverage company, with a strong portfolio of 200 brands covering key categories including carbonated soft drinks, water, sports, energy, juice, and coffee.Together with bottlers and distribution partners, the company sells finished beverage products bearing Coca-Cola and licensed brands through retailers and food-service locations in more than 200 countries and regions globally. Coca-Cola generates around two thirds of its total revenue overseas, with a significant portion from emerging economies in Latin America and Asia-Pacific.

Recent Performance
Over the past twelve months, the share price has moved up 3.77%.Source: Google Finance

Inputs

Forecasted Free Cash Flows (FCFs)


Terminal Value

Present Value of Terminal Value

Present Value of Free Cash Flows

Enterprise Value

Net Debt

Equity Value

Per-Share DCF Value

Conclusion
Based on our metrics, the stock is undervalued. The DCF value of $72.26 per share is higher than the recent market price of $63.33. The Margin of Safety is 12.36%.More By This Author:Mastercard Incorporated DCF Valuation: Is The Stock Undervalued?
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