Coca-Cola Co. (NYSE:KO)

The valuation ratios exhibit varied trends over the observed period. Generally, the ratios demonstrate fluctuation without a consistently strong directional movement, though a period of decline is noticeable in late 2022 and early to mid-2023, followed by a recovery and subsequent stabilization in many cases. The latter half of the period shows increasing values for some ratios, while others remain relatively stable.

Price to Earnings (P/E)

The Price to Earnings ratio began at 27.84 and fluctuated between approximately 24.41 and 28.47 for the majority of the period. A noticeable decrease occurred from the end of 2022 through mid-2023, reaching a low of 22.33. The ratio then recovered, peaking at 28.45 before settling around 26.20 to 28.34 in the final quarters. The most recent value is 26.20.

Price to Operating Profit (P/OP)

The Price to Operating Profit ratio generally mirrored the trend of the P/E ratio. Starting at 26.11, it experienced a decline through the first half of 2023, reaching a low of 21.65. A subsequent increase is observed, with the ratio rising to a high of 30.34 before stabilizing around 24.95. The ratio shows a more pronounced decline and recovery than the P/E ratio.

Price to Sales (P/S)

The Price to Sales ratio demonstrated a consistent downward trend from 7.15 in April 2022 to a low of 5.34 in September 2023. Following this decline, the ratio began to increase, reaching 7.16 in the most recent period. This represents a full cycle, returning to the initial value observed. The increase in the latter part of the period is more substantial than the declines observed earlier.

Price to Book Value (P/BV)

The Price to Book Value ratio exhibited a gradual decline from 11.55 to a low of 9.14 in September 2023. A recovery followed, with the ratio increasing to 12.12 before settling around 10.67. The fluctuations are less dramatic than those observed in the earnings-based ratios, suggesting a more stable valuation relative to book value. The most recent value is 10.67.

Overall, the observed ratios suggest a period of market reassessment in late 2022 and early 2023, followed by a recovery and stabilization. The Price to Sales ratio stands out with a complete cycle of decline and recovery, while the other ratios show more moderate fluctuations. The recent increases in P/S, P/OP, and P/E suggest a renewed positive market sentiment.

The price-to-earnings (P/E) ratio exhibited fluctuations over the analyzed period, spanning from April 2022 to December 2025. Initial values indicated a relatively high valuation, followed by periods of decline and subsequent stabilization, culminating in an increase towards the end of the observation window.

Initial Period (Apr 1, 2022 – Dec 31, 2022)

The P/E ratio began at 27.84 and demonstrated initial volatility, peaking at 28.47 in July 2022 before decreasing to 25.88 by September 2022. It then recovered slightly to 27.12 by the end of the year. This period suggests a degree of investor uncertainty or shifting expectations regarding earnings.

Downward Trend & Stabilization (Mar 31, 2023 – Sep 29, 2023)

A noticeable downward trend occurred through the first three quarters of 2023, with the P/E ratio declining from 27.85 to a low of 22.33. This decrease coincided with a period of relatively stable earnings per share. The ratio then showed a modest recovery to 24.43 by December 2023.

Fluctuation & Increase (Mar 29, 2024 – Dec 31, 2025)

From March 2024 through December 2025, the P/E ratio experienced further fluctuations, ranging from 24.76 to 26.20. Notably, the ratio increased significantly to 26.20 in December 2025, representing the highest value in the latter half of the analyzed period. This increase occurred alongside a corresponding increase in earnings per share, suggesting positive investor sentiment.

Overall, the P/E ratio demonstrated a dynamic pattern, influenced by both share price movements and earnings performance. The initial period showed some volatility, followed by a decline and stabilization, and ultimately a rise towards the end of the period. The increase in the P/E ratio in the final quarters suggests growing investor confidence, potentially driven by improved earnings.

Earnings Per Share Correlation

The P/E ratio generally moved inversely with earnings per share. Periods of increasing EPS often corresponded with decreases in the P/E ratio, and vice versa. However, this relationship was not always consistent, indicating that factors beyond earnings, such as market sentiment and broader economic conditions, also played a role.

The observed changes in the P/E ratio warrant continued monitoring to assess the sustainability of the recent upward trend and to understand the underlying drivers of valuation.

The Price to Operating Profit (P/OP) ratio exhibited fluctuations over the observed period, spanning from April 2022 to December 2025. Initially, the ratio demonstrated a slight decline from 26.11 to 24.45, followed by a period of relative stability before increasing again. A notable decrease occurred in the latter part of 2023, and a subsequent rise into early 2024. The ratio then stabilized before declining again in mid-2024, followed by a recovery towards the end of the period.

Initial Phase (Apr 1, 2022 – Dec 31, 2022)

The P/OP ratio began at 26.11 and decreased to 23.72. This initial decline suggests a potential shift in investor sentiment or a relative underperformance of the share price compared to operating profits during this timeframe. The fluctuations were relatively minor, indicating a degree of stability despite the downward trend.

Stabilization and Increase (Mar 31, 2023 – Jun 30, 2023)

From March 2023 to June 2023, the P/OP ratio remained relatively stable, fluctuating between 25.28 and 24.70. This suggests a period of consolidation where the share price and operating profits moved in tandem.

Significant Decline and Recovery (Sep 29, 2023 – Jun 28, 2024)

A more pronounced decrease in the P/OP ratio was observed from September 2023 (21.65) to June 2024 (27.92). This decline was followed by a recovery, indicating a potential correction in the market’s valuation of the company’s operating profitability. The ratio reached a peak of 30.34 in June 2024.

Recent Trends (Sep 27, 2024 – Dec 31, 2025)

The P/OP ratio experienced a decline from 30.34 in September 2024 to 20.56 in September 2025, before recovering to 24.95 by December 2025. This recent volatility suggests increased sensitivity to changes in either the share price or operating profit. The final value indicates a return towards levels seen earlier in the observed period.

Operating profit per share generally increased over the period, with a more substantial rise observed between March 2024 and September 2025. However, the P/OP ratio did not consistently reflect this increase, indicating that share price movements played a significant role in the overall ratio fluctuations. The interplay between share price and operating profit per share is a key driver of the observed trends in the P/OP ratio.

The Price to Sales (P/S) ratio for the observed period demonstrates a generally stable pattern with fluctuations. Initially, the ratio exhibited a declining trend from April 2022 to September 2023, followed by a period of increase and relative stabilization before concluding with a notable rise in the final reported period.

Initial Decline (Apr 1, 2022 – Sep 29, 2023)

From April 2022 through September 2023, the P/S ratio decreased from 7.15 to 5.34. This represents a reduction of approximately 25.7%. The decline suggests a potential shift in investor sentiment, possibly reflecting concerns about sales growth relative to the share price, or broader market conditions. The rate of decline was not consistent, with periods of slower decrease interspersed with more pronounced drops.

Stabilization and Increase (Dec 31, 2023 – Jun 28, 2024)

Following the low in September 2023, the P/S ratio experienced a period of recovery, increasing from 5.72 to 6.68 by June 2024. This increase, representing approximately 16.8%, indicates a renewed investor confidence or a reassessment of the company’s sales potential. The ratio remained relatively stable between June 28, 2024 and September 26, 2025, fluctuating within a narrow range.

Final Increase (Dec 31, 2025)

The P/S ratio concluded the observed period with a significant increase to 7.16 in December 2025. This represents a substantial jump from the preceding values and suggests a potentially optimistic outlook on future sales performance or a re-evaluation of the company’s valuation. This final value is comparable to the initial value observed in April 2022.

Throughout the period, the share price and sales per share generally increased, but the P/S ratio’s movement indicates that the share price increased at a different rate than sales. The fluctuations in the P/S ratio suggest that market perception of the company’s sales performance and future growth prospects has varied over time.

Overall Trend

The overall trend suggests a cyclical pattern, with an initial decline, a period of stabilization and growth, and a final surge. The ratio’s movement appears to be influenced by a combination of factors, including investor sentiment, sales performance, and broader market conditions.

The price-to-book value (P/BV) ratio exhibited fluctuations over the observed period, spanning from April 2022 to December 2025. Initially, the ratio demonstrated a slight increase followed by a decline, then a period of relative stability, and finally, a notable increase towards the end of the period.

Initial Trend (Apr 1, 2022 – Sep 30, 2022)

The P/BV ratio began at 11.55 and increased to 11.85 before decreasing to 11.26. This initial period suggests a modest increase in investor valuation relative to book value, followed by a slight correction.

Subsequent Decline and Stabilization (Dec 31, 2022 – Jun 30, 2023)

From December 2022 to June 2023, the P/BV ratio decreased from 10.73 to 10.38. This indicates a diminishing premium investors were willing to pay for each dollar of book value. The ratio then stabilized around the 10.09 to 11.14 range through December 2023.

Recent Increase (Mar 29, 2024 – Dec 31, 2025)

A more pronounced upward trend is observed from March 2024 onwards. The P/BV ratio increased from 11.71 to reach 10.67 by December 2025. This suggests a renewed investor confidence or a shift in market perception regarding the company’s asset value relative to its share price.

Book value per share generally increased throughout the period, starting at 5.73 and rising to 7.48. This upward trajectory in BVPS likely contributed to the fluctuations observed in the P/BV ratio. The share price also showed an overall increase, but with more volatility than BVPS, contributing to the observed P/BV ratio changes.

Relationship between Share Price and BVPS

The P/BV ratio’s movements are a combined result of changes in both the share price and the book value per share. While BVPS consistently increased, the share price experienced periods of both growth and decline, leading to the observed fluctuations in the P/BV ratio.

Peak and Trough Values

The lowest P/BV ratio recorded was 9.14 in September 2023, while the highest was 12.12 in December 2024. These represent the periods of lowest and highest investor valuation relative to book value, respectively.

In summary, the P/BV ratio demonstrated a dynamic pattern over the analyzed timeframe, influenced by both share price volatility and the consistent growth of book value per share. The recent increase in the ratio suggests a potentially changing market sentiment.