The Coca-Cola Company’s (NYSE:KO) Price Is Out Of Tune With Earnings
With a price-to-earnings (or “P/E”) ratio of 28.3x The Coca-Cola Company (NYSE:KO) may be sending very bearish signals at the moment, given that almost half of all companies in the United States have P/E ratios under 17x and even P/E’s lower than 10x are not unusual. However, the P/E might be quite high for a reason and it requires further investigation to determine if it’s justified.
Recent times haven’t been advantageous for Coca-Cola as its earnings have been rising slower than most other companies. One possibility is that the P/E is high because investors think this lacklustre earnings performance will improve…
