As of April 30, 2026, Coca-Cola Co's estimated intrinsic value ranges from $32.23 to $103.25 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $103.25 | +30.9% |
| Discounted Cash Flow (5Y) | $90.22 | +14.4% |
| Dividend Discount Model (Multi-Stage) | $86.88 | +10.2% |
| Dividend Discount Model (Stable) | $94.95 | +20.4% |
| Earnings Power Value | $32.23 | -59.1% |
Is Coca-Cola Co (KO) undervalued or overvalued?
With the current market price at $78.87, the stock appears to be moderately undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Coca-Cola Co's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.42 | 0.51 |
| Cost of equity | 5.8% | 7.7% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 18.0% | 18.3% |
| Debt/Equity ratio | 0.14 | 0.14 |
| After-tax WACC | 5.6% | 7.3% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $90 | $423,527M | 84.4% |
| 10-Year Growth | $103 | $479,628M | 72.7% |
| 5-Year EBITDA | $59 | $289,369M | 77.1% |
| 10-Year EBITDA | $72 | $346,259M | 62.2% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $10,997M |
| Discount Rate (WACC) | 7.3% - 5.6% |
| Enterprise Value | $151,141M - $196,718M |
| Net Debt | $35,222M |
| Equity Value | $115,919M - $161,496M |
| Outstanding Shares | 4,304M |
| Fair Value | $27 - $38 |
| Selected Fair Value | $32.23 |
| Metric | Value |
|---|---|
| Market Capitalization | $339468M |
| Enterprise Value | $374690M |
| Trailing P/E | 25.90 |
| Forward P/E | 24.10 |
| Trailing EV/EBITDA | 13.10 |
| Current Dividend Yield | 266.17% |
| Dividend Growth Rate (5Y) | 4.89% |
| Debt-to-Equity Ratio | 0.14 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $30.98 |
| Discounted Cash Flow (5Y) | 25% | $22.55 |
| Dividend Discount Model (Multi-Stage) | 20% | $17.38 |
| Dividend Discount Model (Stable) | 15% | $14.24 |
| Earnings Power Value | 10% | $3.22 |
| Weighted Average | 100% | $88.37 |
Based on our comprehensive valuation analysis, Coca-Cola Co's intrinsic value is $88.37, which is approximately 12.0% above the current market price of $78.87.
Key investment considerations:
Given these factors, we believe Coca-Cola Co is currently moderately undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.