DCF Tool

KO

Coca-Cola Co – Soft Drink Manufacturing
The Coca-Cola Company is a total beverage company with products sold in more than 200 countries and territories. The company’s purpose is to refresh the world and make a difference. The Company's portfolio of brands includes Coca-Cola, Sprite, Fanta and other sparkling soft drinks. The Company's hydration, sports, coffee and tea brands include Dasani, smartwater, vitaminwater, Topo Chico, Powerade, Costa, Georgia, Gold Peak, Honest and Ayataka. The Company's nutrition, juice, dairy and plant-based beverage brands include Minute Maid, Simply, innocent, Del Valle, fairlife and AdeS. The Company's constantly transforming our portfolio, from reducing sugar in our drinks to bringing innovative new products to market. The Company seeks to positively impact people’s lives, communities and the planet through water replenishment, packaging recycling, sustainable sourcing practices and carbon emissions reductions across our value chain. Together with our bottling partners, we employ more than 700,000 people, helping bring economic opportunity to local communities worldwide.
Analysis Results
Intrinsic Value $38.50
Latest Price $56.02
Relative Value 46% overvalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of -1.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -1.3%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 7.09 6.71
2023 7.0 6.28
2024 6.91 5.87
2025 6.82 5.48
2026 6.74 5.13
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 190 billion. This corresponds to a present value of 137 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 29.5 billion. Adding in the terminal value gives a total present value of 167 billion.

There are presently 4.32 billion outstanding shares, so the intrinsic value per share is 38.5.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 22,545,000,000
Current Cash 12,625,000,000
Current Liabilities 19,950,000,000
Current Debt 4,645,000,000
Non-Cash Working Capital (NCWC) -5,385,000,000
Change in NCWC -1,778,000,000
EBIT 12,592,000,000
Tax Provision 2,621,000,000
Depreciation and Amortization 1,452,000,000
Capital Expenditure -1,367,000,000
Unlevered Free Cash Flow 8,242,772,072
Current Assets 19,240,000,000
Current Cash 10,914,000,000
Current Liabilities 14,601,000,000
Current Debt 2,668,000,000
Non-Cash Working Capital (NCWC) -3,607,000,000
Change in NCWC -1,117,000,000
EBIT 10,828,000,000
Tax Provision 1,981,000,000
Depreciation and Amortization 1,536,000,000
Capital Expenditure -1,177,000,000
Unlevered Free Cash Flow 7,869,746,845
Current Assets 20,411,000,000
Current Cash 11,175,000,000
Current Liabilities 26,973,000,000
Current Debt 15,247,000,000
Non-Cash Working Capital (NCWC) -2,490,000,000
Change in NCWC -6,128,000,000
EBIT 11,593,000,000
Tax Provision 1,801,000,000
Depreciation and Amortization 1,365,000,000
Capital Expenditure -2,054,000,000
Unlevered Free Cash Flow 2,840,250,602
Current Assets 30,634,000,000
Current Cash 15,964,000,000
Current Liabilities 29,223,000,000
Current Debt 18,191,000,000
Non-Cash Working Capital (NCWC) 3,638,000,000
Change in NCWC -1,541,000,000
EBIT 10,787,000,000
Tax Provision 1,623,000,000
Depreciation and Amortization 1,086,000,000
Capital Expenditure -1,347,000,000
Unlevered Free Cash Flow 6,888,317,245
Current Assets 36,545,000,000
Current Cash 20,675,000,000
Current Liabilities 27,194,000,000
Current Debt 16,503,000,000
Non-Cash Working Capital (NCWC) 5,179,000,000
Change in NCWC 3,877,000,000
EBIT 10,729,000,000
Tax Provision 5,560,000,000
Depreciation and Amortization 1,260,000,000
Capital Expenditure -1,675,000,000
Unlevered Free Cash Flow 5,342,996,440
Current Assets 34,010,000,000
Current Cash 22,201,000,000
Current Liabilities 26,532,000,000
Current Debt 16,025,000,000
Non-Cash Working Capital (NCWC) 1,302,000,000
Change in NCWC -1,069,000,000
EBIT 10,971,000,000
Tax Provision 1,586,000,000
Depreciation and Amortization 1,787,000,000
Capital Expenditure -2,262,000,000
Unlevered Free Cash Flow 7,288,356,194
Current Assets 33,395,000,000
Current Cash 19,900,000,000
Current Liabilities 26,930,000,000
Current Debt 15,806,000,000
Non-Cash Working Capital (NCWC) 2,371,000,000
Change in NCWC 752,000,000
EBIT 10,874,000,000
Tax Provision 2,239,000,000
Depreciation and Amortization 1,970,000,000
Capital Expenditure -2,553,000,000
Unlevered Free Cash Flow 8,508,186,257
Current Assets 32,986,000,000
Current Cash 21,675,000,000
Current Liabilities 32,374,000,000
Current Debt 22,682,000,000
Non-Cash Working Capital (NCWC) 1,619,000,000
Change in NCWC 469,000,000
EBIT 11,660,000,000
Tax Provision 2,201,000,000
Depreciation and Amortization 1,976,000,000
Capital Expenditure -2,406,000,000
Unlevered Free Cash Flow 8,946,864,879
Current Assets 31,304,000,000
Current Cash 20,268,000,000
Current Liabilities 27,811,000,000
Current Debt 17,925,000,000
Non-Cash Working Capital (NCWC) 1,150,000,000
Change in NCWC -2,680,000,000
EBIT 11,725,000,000
Tax Provision 2,851,000,000
Depreciation and Amortization 1,977,000,000
Capital Expenditure -2,550,000,000
Unlevered Free Cash Flow 5,559,394,353
Current Assets 30,328,000,000
Current Cash 16,551,000,000
Current Liabilities 27,821,000,000
Current Debt 17,874,000,000
Non-Cash Working Capital (NCWC) 3,830,000,000
Change in NCWC 1,739,000,000
EBIT 12,045,000,000
Tax Provision 2,723,000,000
Depreciation and Amortization 1,982,000,000
Capital Expenditure -2,780,000,000
Unlevered Free Cash Flow 10,208,581,505

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