As of April 3, 2026, Coca-Cola Co has a Discounted Cash Flow (DCF) derived fair value of $107.18 per share. With the current market price at $76.72, this represents a potential upside of 39.7%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $93.64 |
| DCF Fair Value (10-year) | $107.18 |
| Potential Upside (5-year) | 22.1% |
| Potential Upside (10-year) | 39.7% |
| Discount Rate (WACC) | 5.6% - 7.0% |
Revenue is projected to grow from $47941 million in 12-2025 to $85452 million by 12-2035, representing a compound annual growth rate of approximately 6.0%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2025 | 47941 | 2% |
| 12-2026 | 50374 | 5% |
| 12-2027 | 53297 | 6% |
| 12-2028 | 58280 | 9% |
| 12-2029 | 62469 | 7% |
| 12-2030 | 65370 | 5% |
| 12-2031 | 69202 | 6% |
| 12-2032 | 73575 | 6% |
| 12-2033 | 76133 | 3% |
| 12-2034 | 79005 | 4% |
| 12-2035 | 85452 | 8% |
Net profit margin is expected to improve from 27% in 12-2025 to 30% by 12-2035, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2025 | 13137 | 27% |
| 12-2026 | 14084 | 28% |
| 12-2027 | 15230 | 29% |
| 12-2028 | 17006 | 29% |
| 12-2029 | 18597 | 30% |
| 12-2030 | 19840 | 30% |
| 12-2031 | 21003 | 30% |
| 12-2032 | 22330 | 30% |
| 12-2033 | 23107 | 30% |
| 12-2034 | 23978 | 30% |
| 12-2035 | 25935 | 30% |
with a 5-year average of $1776 million. Projected CapEx is expected to maintain at approximately 4% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2026 | 1902 |
| 12-2027 | 2028 |
| 12-2028 | 2120 |
| 12-2029 | 2202 |
| 12-2030 | 2298 |
| 12-2031 | 2447 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 26 |
| Days Inventory | 90 |
| Days Payables | 73 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2026 | 17876 | 3112 | 1997 | (3,008) | 15774 |
| 2027 | 19330 | 3366 | 2113 | 894 | 12958 |
| 2028 | 21469 | 3758 | 2311 | 1213 | 14188 |
| 2029 | 23394 | 4110 | 2477 | (350) | 17157 |
| 2030 | 24936 | 4384 | 2592 | 505 | 17455 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 93.64 | 22.1% |
| 10-Year DCF (Growth) | 107.18 | 39.7% |
| 5-Year DCF (EBITDA) | 56.43 | -26.5% |
| 10-Year DCF (EBITDA) | 70.12 | -8.6% |
Is Coca-Cola Co (KO) a buy or a sell? Coca-Cola Co is definitely a buy. Based on our DCF analysis, Coca-Cola Co (KO) appears to be significantly undervalued with upside potential of 39.7%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider a strong buy at the current market price of $76.72.