The Coca-Cola Company (KO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-16.3%

$80.02

vs $95.64 price

Levered DCF

$47.45

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

5.9

Safe zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	22.92×	25.21×	23.76×	28.91×	26.2×	30.47×	26.48×	31.36×
P/B	9.35×	10.79×	9.82×	11.42×	11.11×	12.2×	12.47×	11.88×
P/S	6.27×	5.7×	5.57×	6.4×	6.61×	7.13×	6.35×	5.88×
EV / EBITDA	18.06×	19.17×	18.51×	22.16×	18.76×	21.5×	20.95×	23.08×
Gross margin	61.6%	61.1%	59.5%	58.1%	60.3%	59.3%	60.8%	61.9%
Operating margin	28.7%	21.2%	24.7%	25.4%	26.7%	27.3%	27.1%	26.7%
Net margin	27.3%	22.6%	23.4%	22.2%	25.3%	23.5%	23.9%	18.8%
Current ratio	1.46×	1.03×	1.13×	1.15×	1.13×	1.32×	0.76×	0.87×
Debt / equity	1.47×	1.84×	1.67×	1.68×	1.94×	2.32×	2.33×	2.6×
Interest coverage	8.32×	6.03×	7.41×	12.37×	6.45×	6.26×	10.66×	9.63×
Dividend yield	2.9%	3.1%	3.1%	2.8%	2.8%	3.0%	2.9%	3.3%
Payout ratio	67.0%	78.6%	74.2%	79.8%	74.2%	91.0%	76.7%	103.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	40.7%	42.8%	41.3%	39.6%	42.5%	40.1%	47.0%	37.9%
Return on invested capital	13.0%	10.5%	11.5%	11.7%	10.2%	9.4%	11.2%	9.8%
Return on assets	12.5%	10.6%	11.0%	10.3%	10.4%	8.9%	10.3%	7.7%
Free cash flow yield	1.8%	1.8%	3.8%	3.5%	4.4%	3.7%	3.6%	3.0%
Earnings yield	4.4%	4.0%	4.2%	3.5%	3.8%	3.3%	3.8%	3.2%
Enterprise value	$337.8B	$303.2B	$288.8B	$306.4B	$290.3B	$273.5B	$274.4B	$236.8B
Net debt / EBITDA	1.98×	2.21×	2.18×	2.25×	2.25×	2.98×	2.88×	3.42×
Cash conversion cycle (days)	-1	13	4	8	5	28	28	49