Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Coca-Cola Co., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The financial information reveals trends in net cash provided by operating activities and free cash flow to equity (FCFE) over a five-year period. A notable fluctuation is observed in both metrics, particularly in the most recent years.
- Net Cash from Operations
- Net cash provided by operating activities decreased from US$12,625 million in 2021 to US$11,018 million in 2022, representing a decline of approximately 12.7%. A modest recovery to US$11,599 million occurred in 2023, but this was followed by a substantial decrease to US$6,805 million in 2024. A slight increase to US$7,408 million was recorded in 2025, though remaining significantly below the 2021 level.
- Free Cash Flow to Equity (FCFE)
- FCFE mirrored the trend in operating cash flow. It decreased from US$11,594 million in 2021 to US$8,651 million in 2022, a decrease of roughly 25.3%. FCFE experienced a recovery in 2023, reaching US$11,678 million, nearly matching the 2021 value. However, a significant decline to US$7,309 million occurred in 2024, and a further decrease to US$5,322 million was observed in 2025. This represents a substantial reduction in FCFE over the latter part of the period.
The correlation between net cash from operations and FCFE is strong, suggesting that changes in operating cash flow are a primary driver of changes in FCFE. The pronounced declines observed in both metrics in 2024 and 2025 warrant further investigation to determine the underlying causes, such as changes in revenue, expenses, working capital management, or capital expenditures. The recent trend indicates a weakening in the company’s ability to generate cash available to equity holders.
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Price to FCFE Ratio, Current
Coca-Cola Co., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 4,300,723,069 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 5,322) |
| FCFE per share | 1.24 |
| Current share price (P) | 77.82 |
| Valuation Ratio | |
| P/FCFE | 62.89 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Mondelēz International Inc. | 13.67 |
| PepsiCo Inc. | 18.04 |
| Philip Morris International Inc. | 21.99 |
| P/FCFE, Sector | |
| Food, Beverage & Tobacco | 25.59 |
| P/FCFE, Industry | |
| Consumer Staples | 37.54 |
Based on: 10-K (reporting date: 2025-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Coca-Cola Co., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 4,300,723,069 | 4,301,000,395 | 4,312,456,168 | 4,326,691,783 | 4,335,473,308 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | 5,322) | 7,309) | 11,678) | 8,651) | 11,594) | |
| FCFE per share3 | 1.24 | 1.70 | 2.71 | 2.00 | 2.67 | |
| Share price1, 4 | 79.84 | 70.04 | 60.70 | 59.80 | 62.28 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 64.52 | 41.22 | 22.42 | 29.91 | 23.29 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Mondelēz International Inc. | 14.20 | 32.34 | — | 14.10 | 30.57 | |
| PepsiCo Inc. | 18.63 | 23.92 | 17.88 | 47.17 | 77.00 | |
| Philip Morris International Inc. | 23.01 | 24.69 | 11.93 | 6.64 | 20.46 | |
| P/FCFE, Sector | ||||||
| Food, Beverage & Tobacco | 26.47 | 29.59 | 20.54 | 16.95 | 29.54 | |
| P/FCFE, Industry | ||||||
| Consumer Staples | 33.00 | 32.08 | 24.17 | 25.27 | 24.83 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
3 2025 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 5,322,000,000 ÷ 4,300,723,069 = 1.24
4 Closing price as at the filing date of Coca-Cola Co. Annual Report.
5 2025 Calculation
P/FCFE = Share price ÷ FCFE per share
= 79.84 ÷ 1.24 = 64.52
6 Click competitor name to see calculations.
The Price to Free Cash Flow to Equity (P/FCFE) ratio exhibits a fluctuating pattern over the five-year period. Initial observations reveal a period of relative stability followed by increasing valuation multiples. A detailed examination of the components and the resulting ratio is presented below.
- Share Price
- The share price demonstrated a slight decrease from 2021 to 2022, moving from US$62.28 to US$59.80. A modest recovery occurred in 2023, reaching US$60.70. More substantial growth is then observed in 2024 and 2025, with the share price increasing to US$70.04 and US$79.84 respectively. This indicates increasing investor confidence or market sentiment over the latter part of the period.
- Free Cash Flow to Equity per Share
- FCFE per share experienced a decline from US$2.67 in 2021 to US$2.00 in 2022. A slight recovery to US$2.71 occurred in 2023, but this was followed by a more pronounced decrease to US$1.70 in 2024 and further to US$1.24 in 2025. This suggests a weakening in the cash flow available to equity holders over time.
- Price to FCFE Ratio
- The P/FCFE ratio began at 23.29 in 2021 and increased to 29.91 in 2022, coinciding with the decrease in FCFE per share. It then decreased to 22.42 in 2023, likely due to the partial recovery in FCFE. A significant increase is then observed in 2024, reaching 41.22, and continues to climb to 64.52 in 2025. This substantial increase in the ratio, despite declining FCFE per share, suggests that investors are willing to pay a considerably higher premium for each dollar of FCFE, potentially driven by expectations of future growth or a reassessment of risk. The increasing P/FCFE ratio indicates a growing valuation relative to the cash flow generated for equity holders.
In summary, while the share price generally increased over the period, the FCFE per share decreased. The P/FCFE ratio’s trajectory indicates that market valuation has become increasingly sensitive to the share price and less sensitive to the underlying FCFE, resulting in a substantial increase in the ratio over the final two years of the observed period.
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