Analyzing Coca-Cola (KO) Through the Lens of Smart Investors

By Tamara Parker • Tuesday, February 11 10:07 • Permanent Link

Large-cap Consumer Staples company Coca-Cola has moved 3.7% so far today on a volume of 8,637,261, compared to its average of 17,157,576. In contrast, the S&P 500 index moved -0.0%.

Coca-Cola trades -6.7% away from its average analyst target price of $71.71 per share. The 25 analysts following the stock have set target prices ranging from $59.6 to $85.0, and on average have given Coca-Cola a rating of buy.

If you are considering an investment in KO, you'll want to know the following:

Coca-Cola's current price is 267.0% above its Graham number of $18.23, which implies that at its current valuation it does not offer a margin of safety
Coca-Cola has moved 8.8% over the last year, and the S&P 500 logged a change of 22.5%
Based on its trailing earnings per share of 2.41, Coca-Cola has a trailing 12 month Price to Earnings (P/E) ratio of 27.8 while the S&P 500 average is 29.3
KO has a forward P/E ratio of 22.5 based on its forward 12 month price to earnings (EPS) of $2.97 per share
Its Price to Book (P/B) ratio is 10.87 compared to its sector average of 3.3
The Coca-Cola Company, a beverage company, manufactures, markets, and sells various nonalcoholic beverages worldwide.
Based in Atlanta, the company has 79,100 full time employees and a market cap of $288.23 Billion. Coca-Cola currently returns an annual dividend yield of 3.0%.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.