Stock Analysis on Net

Coca-Cola Co. (NYSE:KO)

Enterprise Value to EBITDA (EV/EBITDA)

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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Coca-Cola Co., EBITDA calculation

US$ in millions

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12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net income attributable to shareowners of The Coca-Cola Company 9,542 9,771 7,747 8,920 6,434
Add: Net income attributable to noncontrolling interest 29 33 21 65 42
Less: Loss from discontinued operations, net of income taxes (251)
Add: Income tax expense 2,115 2,621 1,981 1,801 1,623
Earnings before tax (EBT) 11,686 12,425 9,749 10,786 8,350
Add: Interest expense 882 1,597 1,437 946 919
Earnings before interest and tax (EBIT) 12,568 14,022 11,186 11,732 9,269
Add: Depreciation and amortization 1,260 1,452 1,536 1,365 1,086
Earnings before interest, tax, depreciation and amortization (EBITDA) 13,828 15,474 12,722 13,097 10,355

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. Coca-Cola Co. EBITDA increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level.

Enterprise Value to EBITDA Ratio, Current

Coca-Cola Co., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 266,559
Earnings before interest, tax, depreciation and amortization (EBITDA) 13,828
Valuation Ratio
EV/EBITDA 19.28
Benchmarks
EV/EBITDA, Competitors1
PepsiCo Inc. 18.15
EV/EBITDA, Sector
Food, Beverage & Tobacco 18.70
EV/EBITDA, Industry
Consumer Staples 15.80

Based on: 10-K (reporting date: 2022-12-31).

1 Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.


Enterprise Value to EBITDA Ratio, Historical

Coca-Cola Co., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 287,975 302,010 250,062 285,330 225,735
Earnings before interest, tax, depreciation and amortization (EBITDA)2 13,828 15,474 12,722 13,097 10,355
Valuation Ratio
EV/EBITDA3 20.83 19.52 19.66 21.79 21.80
Benchmarks
EV/EBITDA, Competitors4
PepsiCo Inc. 18.63 18.42 17.17 17.85 14.05
EV/EBITDA, Sector
Food, Beverage & Tobacco 19.70 18.98 18.40 19.84 17.47
EV/EBITDA, Industry
Consumer Staples 16.61 16.29 15.70 18.38 13.52

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 See details »

2 See details »

3 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= 287,975 ÷ 13,828 = 20.83

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. Coca-Cola Co. EV/EBITDA ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.