The Coca-Cola Company’s (NYSE:KO) Intrinsic Value Is Potentially 48% Above Its Share Price
Key Insights
- Coca-Cola’s estimated fair value is US$92.70 based on 2 Stage Free Cash Flow to Equity
- Coca-Cola is estimated to be 32% undervalued based on current share price of US$62.60
- The US$74.26 analyst price target for KO is 20% less than our estimate of fair value
How far off is The Coca-Cola Company (NYSE:KO) from its intrinsic value? Using the most recent financial data, we’ll take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to today’s value. Our analysis will employ the Discounted Cash Flow (DCF) model. Don’t get put off by the jargon, the math behind it is actually quite straightforward.
Companies can be valued in a lot of ways, so we would point out…
