Microsoft Excel LibreOffice Calc

Coca-Cola Co. (KO)


Common Stock Valuation Ratios (Price Multiples)

Difficulty: Beginner

Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).


Current Valuation Ratios

Coca-Cola Co., current price multiples

Microsoft Excel LibreOffice Calc
Coca-Cola Co. PepsiCo Inc. Beverages Consumer Goods
Selected Financial Data
Current share price (P) $54.23
No. shares of common stock outstanding 4,276,027,437
Growth rate (g) -22.21%
 
Earnings per share (EPS) $1.50
Next year expected EPS $1.17
Operating profit per share $2.03
Sales per share $7.45
Book value per share (BVPS) $3.97
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 36.04 15.17 22.26 26.03
Price to next year expected earnings 46.33 13.18 21.67 23.99
Price to operating profit (P/OP) 26.65 18.77 22.42 21.63
Price to sales (P/S) 7.28 2.94 4.37 2.12
Price to book value (P/BV) 13.66 13.07 13.39 5.75

Based on: 10-K (filing date: 2019-02-21).

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Coca-Cola Co., historical price multiples

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Price to earnings (P/E) 30.47 150.54 27.48 26.01 25.87
Price to operating profit (P/OP) 22.54 25.05 20.80 21.91 18.91
Price to sales (P/S) 6.15 5.31 4.28 4.32 3.99
Price to book value (P/BV) 11.55 11.00 7.78 7.48 6.06

Based on: 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-25).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Coca-Cola Co.’s P/E ratio increased from 2016 to 2017 but then slightly declined from 2017 to 2018 not reaching 2016 level.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Coca-Cola Co.’s P/OP ratio increased from 2016 to 2017 but then slightly declined from 2017 to 2018 not reaching 2016 level.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Coca-Cola Co.’s P/S ratio increased from 2016 to 2017 and from 2017 to 2018.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Coca-Cola Co.’s P/BV ratio increased from 2016 to 2017 and from 2017 to 2018.

Price to Earnings (P/E)

Coca-Cola Co., historical P/E calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
No. shares of common stock outstanding1 4,275,340,031 4,265,906,533 4,293,461,702 4,329,497,778 4,366,243,616
Selected Financial Data (US$)
Net income attributable to shareowners of The Coca-Cola Company (in millions) 6,434  1,248  6,527  7,351  7,098 
Earnings per share (EPS)2 1.50 0.29 1.52 1.70 1.63
Share price1, 3 45.86 44.04 41.78 44.16 42.05
Valuation Ratio
P/E ratio4 30.47 150.54 27.48 26.01 25.87
Benchmarks
P/E Ratio, Competitors5
PepsiCo Inc. 13.01 32.81 24.09 25.72 22.86
P/E Ratio, Sector
Beverages 18.94 56.89 25.81 25.89 24.43
P/E Ratio, Industry
Consumer Goods 22.27 20.75 19.16 20.60 21.87

Based on: 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-25).

1 Data adjusted for splits and stock dividends.

2 2018 Calculation
EPS = Net income attributable to shareowners of The Coca-Cola Company ÷ No. shares of common stock outstanding
= 6,434,000,000 ÷ 4,275,340,031 = 1.50

3 Closing price as at the filing date of Coca-Cola Co.’s Annual Report.

4 2018 Calculation
P/E ratio = Share price ÷ EPS
= 45.86 ÷ 1.50 = 30.47

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Coca-Cola Co.’s P/E ratio increased from 2016 to 2017 but then slightly declined from 2017 to 2018 not reaching 2016 level.

Price to Operating Profit (P/OP)

Coca-Cola Co., historical P/OP calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
No. shares of common stock outstanding1 4,275,340,031 4,265,906,533 4,293,461,702 4,329,497,778 4,366,243,616
Selected Financial Data (US$)
Operating income (in millions) 8,700  7,501  8,626  8,728  9,708 
Operating profit per share2 2.03 1.76 2.01 2.02 2.22
Share price1, 3 45.86 44.04 41.78 44.16 42.05
Valuation Ratio
P/OP ratio4 22.54 25.05 20.80 21.91 18.91
Benchmarks
P/OP Ratio, Competitors5
PepsiCo Inc. 16.10 15.15 15.57 16.77 15.51
P/OP Ratio, Sector
Beverages 19.08 19.27 18.02 19.39 17.22
P/OP Ratio, Industry
Consumer Goods 18.51 14.68 15.65 15.71 15.74

Based on: 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-25).

1 Data adjusted for splits and stock dividends.

2 2018 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 8,700,000,000 ÷ 4,275,340,031 = 2.03

3 Closing price as at the filing date of Coca-Cola Co.’s Annual Report.

4 2018 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 45.86 ÷ 2.03 = 22.54

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Coca-Cola Co.’s P/OP ratio increased from 2016 to 2017 but then slightly declined from 2017 to 2018 not reaching 2016 level.

Price to Sales (P/S)

Coca-Cola Co., historical P/S calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
No. shares of common stock outstanding1 4,275,340,031 4,265,906,533 4,293,461,702 4,329,497,778 4,366,243,616
Selected Financial Data (US$)
Net operating revenues (in millions) 31,856  35,410  41,863  44,294  45,998 
Sales per share2 7.45 8.30 9.75 10.23 10.53
Share price1, 3 45.86 44.04 41.78 44.16 42.05
Valuation Ratio
P/S ratio4 6.15 5.31 4.28 4.32 3.99
Benchmarks
P/S Ratio, Competitors5
PepsiCo Inc. 2.52 2.51 2.43 2.22 2.23
P/S Ratio, Sector
Beverages 3.72 3.51 3.17 3.09 2.95
P/S Ratio, Industry
Consumer Goods 1.81 1.99 2.00 1.85 1.69

Based on: 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-25).

1 Data adjusted for splits and stock dividends.

2 2018 Calculation
Sales per share = Net operating revenues ÷ No. shares of common stock outstanding
= 31,856,000,000 ÷ 4,275,340,031 = 7.45

3 Closing price as at the filing date of Coca-Cola Co.’s Annual Report.

4 2018 Calculation
P/S ratio = Share price ÷ Sales per share
= 45.86 ÷ 7.45 = 6.15

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Coca-Cola Co.’s P/S ratio increased from 2016 to 2017 and from 2017 to 2018.

Price to Book Value (P/BV)

Coca-Cola Co., historical P/BV calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
No. shares of common stock outstanding1 4,275,340,031 4,265,906,533 4,293,461,702 4,329,497,778 4,366,243,616
Selected Financial Data (US$)
Equity attributable to shareowners of The Coca-Cola Company (in millions) 16,981  17,072  23,062  25,554  30,320 
Book value per share (BVPS)2 3.97 4.00 5.37 5.90 6.94
Share price1, 3 45.86 44.04 41.78 44.16 42.05
Valuation Ratio
P/BV ratio4 11.55 11.00 7.78 7.48 6.06
Benchmarks
P/BV Ratio, Competitors5
PepsiCo Inc. 11.21 14.62 13.73 11.75 8.52
P/BV Ratio, Sector
Beverages 11.39 12.41 9.71 8.84 6.96
P/BV Ratio, Industry
Consumer Goods 4.92 5.11 5.35 4.96 5.52

Based on: 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-25).

1 Data adjusted for splits and stock dividends.

2 2018 Calculation
BVPS = Equity attributable to shareowners of The Coca-Cola Company ÷ No. shares of common stock outstanding
= 16,981,000,000 ÷ 4,275,340,031 = 3.97

3 Closing price as at the filing date of Coca-Cola Co.’s Annual Report.

4 2018 Calculation
P/BV ratio = Share price ÷ BVPS
= 45.86 ÷ 3.97 = 11.55

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Coca-Cola Co.’s P/BV ratio increased from 2016 to 2017 and from 2017 to 2018.