Coca-Cola Co. (KO)

Free Cash Flow to Equity (FCFE)

Coca-Cola Co., FCFE calculation

USD $ in millions

12 months ended	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Net income attributable to shareowners of The Coca-Cola Company	9,019	8,572	11,809	6,824	5,807
Net income attributable to noncontrolling interests	67	62	50	82	67
Net noncash charges	2,639	2,733	(2,697)	1,844	2,452
Net change in operating assets and liabilities	(1,080)	(1,893)	370	(564)	(755)
Net cash provided by operating activities	10,645	9,474	9,532	8,186	7,571
Purchases of property, plant and equipment	(2,780)	(2,920)	(2,215)	(1,993)	(1,968)
Proceeds from disposals of property, plant and equipment	143	101	134	104	129
Issuances of debt	42,791	27,495	15,251	14,689	4,337
Payments of debt	(38,573)	(22,530)	(13,403)	(12,326)	(4,308)
Free cash flow to equity (FCFE)	12,226	11,620	9,299	8,660	5,761

Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Coca-Cola Co.'s equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	Coca-Cola Co.'s FCFE increased from 2010 to 2011 and from 2011 to 2012.

Coca-Cola Co., current P/FCFE

	Coca-Cola Co.	Consumer Goods
No. shares of common stock outstanding	4,456,717,996
Selected Financial Data (USD $)
Free cash flow to equity (FCFE) (in millions)	12,226
FCFE per share	2.74
Current share price (P)	42.34
Ratio
P/FCFE	15.43	21.07

If company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.

Otherwise, if company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Coca-Cola Co., P/FCFE calculation

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
No. shares of common stock outstanding¹	4,456,717,996	4,526,408,442	4,588,633,662	4,610,247,876	4,629,316,324
Selected Financial Data (USD $)
Free cash flow to equity (FCFE) (in millions)²	12,226	11,620	9,299	8,660	5,761
FCFE per share⁴	2.74	2.57	2.03	1.88	1.24
Share price^1, 3	38.45	34.59	31.96	26.36	20.54
P/FCFE, Comparison to Industry
Coca-Cola Co.⁵	14.02	13.47	15.77	14.03	16.51
Industry, Consumer Goods	17.95	11.53	12.16	13.80	9.83

¹ Data adjusted for splits and stock dividends.

³ Close price on the filing date of Coca-Cola Co.'s Annual Report.

2012 Calculations

⁴ FCFE per share = FCFE ÷ No. shares of common stock outstanding
12,226,000,000 ÷ 4,456,717,996 = 2.74

⁵ P/FCFE = Share price ÷ FCFE per share
= 38.45 ÷ 2.74 = 14.02

Ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders' equity.	Coca-Cola Co.'s P/FCFE ratio declined from 2010 to 2011 but then slightly increased from 2011 to 2012.