Stock Analysis on Net

Coca-Cola Co. (NYSE:KO)

Common Stock Valuation Ratios (Price Multiples) 

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Current Valuation Ratios

Coca-Cola Co., current price multiples

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Coca-Cola Co. Altria Group Inc. Mondelēz International Inc. PepsiCo Inc. Philip Morris International Inc. Food, Beverage & Tobacco Consumer Staples
Selected Financial Data
Current share price (P) $62.97
No. shares of common stock outstanding 4,324,629,174
Growth rate (g) -30.41%
 
Earnings per share (EPS) $2.26
Next year expected EPS $1.57
Operating profit per share $2.38
Sales per share $8.94
Book value per share (BVPS) $5.32
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 27.87 32.17 20.38 31.49 16.62 24.97 26.86
Price to next year expected earnings 40.05 43.17 18.95 27.82 23.55 25.19
Price to operating profit (P/OP) 26.42 6.89 18.83 21.50 11.67 16.40 18.06
Price to sales (P/S) 7.04 3.06 3.05 3.02 1.84 3.26 1.64
Price to book value (P/BV) 11.84 3.10 14.96 14.94 8.82

Based on: 10-K (reporting date: 2021-12-31).

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

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Price to earnings (P/E) 27.63 27.91 28.21 30.47 150.54
Price to operating profit (P/OP) 26.19 24.03 24.95 22.54 25.05
Price to sales (P/S) 6.99 6.55 6.75 6.15 5.31
Price to book value (P/BV) 11.74 11.20 13.26 11.55 11.00

Based on: 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), 10-K (reporting date: 2017-12-31).

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. P/E ratio decreased from 2019 to 2020 and from 2020 to 2021.
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. P/OP ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 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. P/S ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Coca-Cola Co. P/BV ratio decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.

Price to Earnings (P/E)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1 4,335,473,308 4,309,311,676 4,290,276,067 4,275,340,031 4,265,906,533
Selected Financial Data (US$)
Net income attributable to shareowners of The Coca-Cola Company (in millions) 9,771  7,747  8,920  6,434  1,248 
Earnings per share (EPS)2 2.25 1.80 2.08 1.50 0.29
Share price1, 3 62.28 50.17 58.65 45.86 44.04
Valuation Ratio
P/E ratio4 27.63 27.91 28.21 30.47 150.54
Benchmarks
P/E Ratio, Competitors5
Altria Group Inc. 37.80 18.14 14.03 11.90
Mondelēz International Inc. 21.64 22.33 21.72 20.03 21.45
PepsiCo Inc. 30.58 26.15 27.83 13.01 32.81
Philip Morris International Inc. 18.37 16.55 18.94 15.08 26.52
P/E Ratio, Sector
Food, Beverage & Tobacco 25.75 22.50 29.01 17.30 27.35
P/E Ratio, Industry
Consumer Staples 26.89 24.11 36.28 20.23 21.38

Based on: 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), 10-K (reporting date: 2017-12-31).

1 Data adjusted for splits and stock dividends.

2 2021 Calculation
EPS = Net income attributable to shareowners of The Coca-Cola Company ÷ No. shares of common stock outstanding
= 9,771,000,000 ÷ 4,335,473,308 = 2.25

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

4 2021 Calculation
P/E ratio = Share price ÷ EPS
= 62.28 ÷ 2.25 = 27.63

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. P/E ratio decreased from 2019 to 2020 and from 2020 to 2021.

Price to Operating Profit (P/OP)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1 4,335,473,308 4,309,311,676 4,290,276,067 4,275,340,031 4,265,906,533
Selected Financial Data (US$)
Operating income (in millions) 10,308  8,997  10,086  8,700  7,501 
Operating profit per share2 2.38 2.09 2.35 2.03 1.76
Share price1, 3 62.28 50.17 58.65 45.86 44.04
Valuation Ratio
P/OP ratio4 26.19 24.03 24.95 22.54 25.05
Benchmarks
P/OP Ratio, Competitors5
Altria Group Inc. 8.09 7.45 7.65 10.71 12.73
Mondelēz International Inc. 20.00 20.60 21.87 20.45 17.88
PepsiCo Inc. 20.87 18.47 19.78 16.10 15.15
Philip Morris International Inc. 12.90 11.43 12.92 10.48 13.91
P/OP Ratio, Sector
Food, Beverage & Tobacco 16.91 15.31 16.73 15.10 16.24
P/OP Ratio, Industry
Consumer Staples 18.08 17.31 18.77 14.86 14.53

Based on: 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), 10-K (reporting date: 2017-12-31).

1 Data adjusted for splits and stock dividends.

2 2021 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 10,308,000,000 ÷ 4,335,473,308 = 2.38

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

4 2021 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 62.28 ÷ 2.38 = 26.19

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. P/OP ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Price to Sales (P/S)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1 4,335,473,308 4,309,311,676 4,290,276,067 4,275,340,031 4,265,906,533
Selected Financial Data (US$)
Net operating revenues (in millions) 38,655  33,014  37,266  31,856  35,410 
Sales per share2 8.92 7.66 8.69 7.45 8.30
Share price1, 3 62.28 50.17 58.65 45.86 44.04
Valuation Ratio
P/S ratio4 6.99 6.55 6.75 6.15 5.31
Benchmarks
P/S Ratio, Competitors5
Altria Group Inc. 3.60 3.10 3.14 3.85 4.76
Mondelēz International Inc. 3.24 2.99 3.25 2.61 2.42
PepsiCo Inc. 2.93 2.65 3.03 2.52 2.51
Philip Morris International Inc. 2.03 1.75 1.75 1.49 2.05
P/S Ratio, Sector
Food, Beverage & Tobacco 3.36 3.00 3.23 2.83 3.03
P/S Ratio, Industry
Consumer Staples 1.64 1.53 1.51 1.30 1.35

Based on: 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), 10-K (reporting date: 2017-12-31).

1 Data adjusted for splits and stock dividends.

2 2021 Calculation
Sales per share = Net operating revenues ÷ No. shares of common stock outstanding
= 38,655,000,000 ÷ 4,335,473,308 = 8.92

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

4 2021 Calculation
P/S ratio = Share price ÷ Sales per share
= 62.28 ÷ 8.92 = 6.99

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. P/S ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Price to Book Value (P/BV)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1 4,335,473,308 4,309,311,676 4,290,276,067 4,275,340,031 4,265,906,533
Selected Financial Data (US$)
Equity attributable to shareowners of The Coca-Cola Company (in millions) 22,999  19,299  18,981  16,981  17,072 
Book value per share (BVPS)2 5.30 4.48 4.42 3.97 4.00
Share price1, 3 62.28 50.17 58.65 45.86 44.04
Valuation Ratio
P/BV ratio4 11.74 11.20 13.26 11.55 11.00
Benchmarks
P/BV Ratio, Competitors5
Altria Group Inc. 28.54 12.69 6.60 7.91
Mondelēz International Inc. 3.29 2.88 3.08 2.64 2.40
PepsiCo Inc. 14.52 13.84 13.76 11.21 14.62
Philip Morris International Inc.
P/BV Ratio, Sector
Food, Beverage & Tobacco 15.41 13.76 13.54 10.82 12.05
P/BV Ratio, Industry
Consumer Staples 8.83 7.94 7.61 5.96 6.03

Based on: 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), 10-K (reporting date: 2017-12-31).

1 Data adjusted for splits and stock dividends.

2 2021 Calculation
BVPS = Equity attributable to shareowners of The Coca-Cola Company ÷ No. shares of common stock outstanding
= 22,999,000,000 ÷ 4,335,473,308 = 5.30

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

4 2021 Calculation
P/BV ratio = Share price ÷ BVPS
= 62.28 ÷ 5.30 = 11.74

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 required rate of return and its actual rate of return. Coca-Cola Co. P/BV ratio decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.