Stock Analysis on Net
Stock Analysis on Net

Coca-Cola Co. (NYSE:KO)

Enterprise Value to FCFF (EV/FCFF)

Microsoft Excel LibreOffice Calc

Free Cash Flow to The Firm (FCFF)

Coca-Cola Co., FCFF calculation

US$ in millions

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12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net income attributable to shareowners of The Coca-Cola Company 7,747  8,920  6,434  1,248  6,527 
Net income attributable to noncontrolling interests 21  65  42  35  23 
Net noncash charges 1,386  1,120  2,046  2,183  2,467 
Net change in operating assets and liabilities 690  366  (1,202) 3,529  (221)
Net cash provided by operating activities 9,844  10,471  7,320  6,995  8,796 
Interest paid, net of tax1 745  767  703  537  534 
Purchases of property, plant and equipment (1,177) (2,054) (1,347) (1,675) (2,262)
Proceeds from disposals of property, plant and equipment 189  978  245  104  150 
Free cash flow to the firm (FCFF) 9,601  10,162  6,921  5,961  7,218 

Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-24), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24).

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Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Coca-Cola Co.’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Coca-Cola Co.’s FCFF increased from 2018 to 2019 but then slightly decreased from 2019 to 2020.

Interest Paid, Net of Tax

Coca-Cola Co., interest paid, net of tax calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Effective Income Tax Rate (EITR)
EITR1 20.30% 16.70% 19.30% 29.00% 19.50%
Interest Paid, Net of Tax
Interest paid, before tax 935  921  871  757  663 
Less: Interest paid, tax2 190  154  168  220  129 
Interest paid, net of tax 745  767  703  537  534 

Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-24), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24).

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2 2020 Calculation
Interest paid, tax = Interest paid × EITR
= 935 × 20.30% = 190

Enterprise Value to FCFF Ratio, Current

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

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV) 269,033 
Free cash flow to the firm (FCFF) 9,601 
Valuation Ratio
EV/FCFF 28.02
Benchmarks
EV/FCFF, Competitors1
Altria Group Inc. 12.77
Mondelēz International Inc. 29.90
PepsiCo Inc. 34.63
Philip Morris International Inc. 18.35
EV/FCFF, Sector
Food, Beverage & Tobacco 23.44
EV/FCFF, Industry
Consumer Staples 25.79

Based on: 10-K (filing date: 2021-02-25).

1 Click competitor name to see calculations.

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

Enterprise Value to FCFF Ratio, Historical

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 250,062  285,330  225,735  216,786  203,047 
Free cash flow to the firm (FCFF)2 9,601  10,162  6,921  5,961  7,218 
Valuation Ratio
EV/FCFF3 26.04 28.08 32.62 36.36 28.13
Benchmarks
EV/FCFF, Competitors4
Altria Group Inc. 11.79 12.41 14.07 25.53 37.49
Mondelēz International Inc. 28.50 29.63 26.47 42.31 38.75
PepsiCo Inc. 30.09 35.73 24.55 22.21 20.92
Philip Morris International Inc. 16.31 16.47 16.76 23.52 24.24
EV/FCFF, Sector
Food, Beverage & Tobacco 21.25 23.13 21.52 27.66 27.34
EV/FCFF, Industry
Consumer Staples 22.76 22.90 19.98 21.10 22.70

Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-24), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24).

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3 2020 Calculation
EV/FCFF = EV ÷ FCFF
= 250,062 ÷ 9,601 = 26.04

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Coca-Cola Co.’s EV/FCFF ratio decreased from 2018 to 2019 and from 2019 to 2020.