US · NYSE · KO
Coca-Cola (KO) stock analysis: valuation and financials
Consumer Staples · Beverages (Production/Distribution)
$93.42 -0.5% Price as of Oct 19, 2026
Wide-moat concentrate franchise with 61.7% gross margin and 16.8% ROIC, but 1.9% revenue growth and $33.2B net debt at 28x EV/EBITDA imply 12.9% FCF growth; base case shows 36% downside.
- Market cap
- $401.9B
- P/E
- 29.3x
- EV/Sales
- 8.8x
- FCF yield
- 3.1%
- 52-week range
- $66.80 – $93.90
- Next earnings
- Oct 27, 2026
Research as of Oct 20, 2026
Business quality scorecard
- Growth39
- Profitability72
- Cash flow79
- Balance sheet49
- Capital allocation69
- Valuation45
0–100, computed from reported financials; higher is better, and a higher valuation score means cheaper.
How it makes money
Bottlers and fountain operators pay for concentrates and syrups while retailers and distributors pay for finished beverages; North America is the largest profit pool at 32.6% of segment operating profit, and Latin America earns the highest margin at 59.1%.
Financials by year
| FY2021Jan–Dec 2021 | FY2022Jan–Dec 2022 | FY2023Jan–Dec 2023 | FY2024Jan–Dec 2024 | FY2025Jan–Dec 2025 | |
|---|---|---|---|---|---|
| Revenue | $38.7B | $43.0B | $45.8B | $47.1B | $47.9B |
| Revenue growth | +17.1% | +11.3% | +6.4% | +2.9% | +1.9% |
| Gross margin | 60.3% | 58.1% | 59.5% | 61.1% | 61.6% |
| Operating margin | 26.7% | 25.4% | 24.7% | 21.2% | 28.7% |
| Net income | $9.8B | $9.5B | $10.7B | $10.6B | $13.1B |
| Free cash flow | $11.3B | $9.5B | $9.7B | $4.7B | $5.3B |
| FCF margin | 29.1% | 22.2% | 21.3% | 10.1% | 11.0% |
Amounts in USD · What is free cash flow?
Margins FY2025 gross margin 61.6% (FY2024 61.1%); operating margin 28.7% vs 21.2% as SG&A held flat at $14.52B on +1.9% revenue. TTM 61.7%/29.3%; Q1 FY2026 63.0%/35.0%.
- Cash flow HealthyFY2025 operating cash flow of $7.41B trailed net income of $13.11B (cash conversion 0.75x, flagged amber), but TTM has normalised to OCF $14.63B against net income of $13.70B.
- Debt ManageableNet debt $33.2B on total debt of $43.8B versus $10.6B cash; net debt/EBITDA 2.14x and debt-to-equity 1.30x, consistent with moderate leverage.
Balance sheet Leverage · Moderate
- Cash & short-term investments
- $10.6B
- Total debt
- $43.8B
- Net debt
- $33.2B
- Net debt / EBITDA
- 2.1x
- Interest coverage
- 8.8x
- Current ratio
- 1.4x
As of Apr 3, 2026 · Amounts in USD · How to read a balance sheet
Management and track record
- Management AdequateExecution solid but slowing: FY2025 revenue $47.9B (+1.9% y/y), operating margin 28.7%, ROIC 16.8% versus 14.0% in FY2024; growth has decelerated every year since FY2021's 17.1%.
- Credibility HighFY2025 comparable EPS came in at $3.00, up 4%, against guidance of approximately 3% growth; free cash flow excluding the fairlife payment was $11.4B versus at least $9.8B guided.
Of 2 guided figures checked: 2 beat, 0 in range, 0 missed.
Valuation range
Implied value per share · Price when researched: $93.42
Each scenario assumes five years of revenue growth, an FCF margin and an exit multiple, discounted to today. The assumptions and sensitivities are in the full report.
The full report also covers
- Revenue, growth and outlook of each segment
- Moat and main competitors
- Key risks
- Capital allocation: where the free cash flow went
- What management promised, and what they delivered
- Scenario assumptions and sensitivities
- A source for every claim
- Ask AI about this company
The full report is for members.