One-glance verdict
Overvalued
$53.23 our estimate vs market $92.68
Wall Street consensus: $95.12 (78.7% higher than our fair-value estimate)
74% above our estimate, beyond the bull case
Fundamentals snapshot
The Coca-Cola Company
KO · NYQ · Consumer Defensive · Beverages - Non-Alcoholic
Current price
$92.68
52-week range
$67.27 - $94.10
Market cap
$398.76B
Balance sheet
Watch
9.02x Adequate
Net debt $27.89B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 2.8% last year.
- Reward Returns 42.1% on equity, ahead of 66% of its peers.
- Risk Stock trades 10.0% above its 5-year average P/E.
- Risk Net debt grew 7.9% over 3 years.
What this company does
The Coca-Cola Company
The Coca-Cola Company is a global business that sells well-known non-alcoholic drinks like Coke, Sprite, and Dasani water. It makes most of its money by selling the secret syrups and concentrates to a network of bottling partners, who then create and sell the final drinks to stores. This approach helps the company maintain strong profit margins (the percentage of sales it gets to keep as profit) because it doesn't have to own and operate all the costly bottling plants and delivery trucks itself.
How the company got here
Coca-Cola was invented in 1886 by an Atlanta pharmacist, Dr. John S. Pemberton, who created a flavored syrup and sold it at a local pharmacy's soda fountain. A few years later, a businessman named Asa Candler bought the formula and began expanding its distribution. A key turning point came in 1899 when the company allowed independent business people to buy the syrup and sell the drink in bottles, creating a worldwide bottling system. This model of selling concentrate (the syrup base for drinks) to bottling partners, rather than handling all the manufacturing and distribution itself, allowed the company to grow globally at a rapid pace.
What it actually does
Most people know Coca-Cola from its famous red and white logo and classic soda, but the company sells a huge variety of other nonalcoholic drinks. Its products include sparkling soft drinks like Sprite and Fanta, waters like Dasani and Smartwater, sports drinks like Powerade and BodyArmor, and juices like Minute Maid and Simply. The company also owns coffee brands like Costa Coffee and tea brands like Gold Peak. The core of its business is making and selling beverage concentrates and syrups to a global network of bottling partners who then produce, package, and sell the final drinks to stores, restaurants, and vending machines.
Concentrate Operations
This is Coca-Cola's main business and where it makes most of its money. The company manufactures and sells the secret-formula syrups and concentrates for its hundreds of beverage brands. The customers for this segment are not everyday shoppers, but rather the more than 225 independent bottling companies around the world. This is a very profitable business because it has high margins (the profit made on each sale) since it costs relatively little to produce the syrup compared to the price it's sold for.
Finished Product Operations
While most bottling is done by partners, Coca-Cola also has its own bottling and distribution operations in some regions, which it calls Bottling Investments. This part of the business handles the full process of making, packaging, and selling the final drinks directly to retailers like grocery stores and restaurants. This segment generates a significant amount of revenue (the total money earned before costs are subtracted), but it is less profitable than selling concentrate because it involves more costs, like manufacturing, trucks, and warehouses. The company has been strategically selling many of its company-owned bottling operations to independent partners to focus on the more profitable concentrate business.
What management is betting on now
The company is focused on growing its total beverage portfolio, not just its classic sodas, by innovating with new products and flavors like Coca-Cola Zero Sugar and Fuze Tea. Management is also heavily investing in digital marketing and data analytics to better connect with customers, especially younger ones. Another key priority is making its supply chain (the entire process of making and selling its goods) more efficient and sustainable. This includes working closely with its global network of bottling partners to ensure products are always available and executed well in local markets.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-1.73B
FY2024 Q4
$3.15B
FY2025 Q1
$-5.51B
FY2025 Q2
$3.37B
FY2025 Q3
$4.56B
FY2025 Q4
$2.87B
FY2026 Q2
$1.75B
Revenue
$12.47B
Net income
$3.92B
Diluted EPS
0.91
Operating cash flow
$2.02B
Free cash flow
$1.75B
Fetching…
Sources
Revenue
$11.82B
Net income
$2.27B
Diluted EPS
0.53
Operating cash flow
$3.76B
Free cash flow
$2.87B
Fetching…
Sources
Revenue
$12.46B
Net income
$3.70B
Diluted EPS
0.86
Operating cash flow
$5.04B
Free cash flow
$4.56B
Fetching…
Sources
Revenue
$12.54B
Net income
$3.81B
Diluted EPS
0.88
Operating cash flow
$3.81B
Free cash flow
$3.37B
Fetching…
Sources
Revenue
$11.13B
Net income
$3.33B
Diluted EPS
0.77
Operating cash flow
$-5.20B
Free cash flow
$-5.51B
Fetching…
Sources
Revenue
$11.54B
Net income
$2.19B
Diluted EPS
0.50
Operating cash flow
$3.95B
Free cash flow
$3.15B
Fetching…
Sources
Revenue
$11.85B
Net income
$2.85B
Diluted EPS
0.66
Operating cash flow
$-1.26B
Free cash flow
$-1.73B
Fetching…
Sources
Is it cheap or expensive?
Fair value $53.23 vs current price $92.68
Wall Street consensus is the average analyst price target: $95.12 (78.7% higher than our fair-value estimate).
Our most-likely fair value is $53.23 a share — about 42.6% below today's price of $92.68, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $27.9B. Interest coverage 9.0x.
Net debt
$27.89B
Interest coverage
9.02x
The Coca-Cola Company's profit covers its interest bill about 9.0 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
KO
BASELINE
The Coca-Cola Company
Total debt $44.26B Interest coverage 9.02x This is the baseline the peer rows are being compared against.
Total debt $51.88B Interest coverage 12.03x +33% vs KO Carries about 1.3x more debt cushion than KO.
Total debt $92.93M Interest coverage 38.30x +325% vs KO Carries about 4.2x more debt cushion than KO.
Total debt $33.53B Interest coverage 4.84x -46% vs KO Carries about 1.9x less debt cushion than KO.
Total debt $72.73B Interest coverage 4.05x -55% vs KO Carries about 2.2x less debt cushion than KO.
Total debt $22.20B Interest coverage 2.94x -67% vs KO Carries about 3.1x less debt cushion than KO.
What you should know
The case for and against KO
3 Rewards
2 Risks
Rewards
-
Revenue grew 2.8% last year.
-
Returns 42.1% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 10.0% above its 5-year average P/E.
-
Net debt grew 7.9% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
27.83x
Forward P/E
26.31x
P/B
11.03x
P/S
7.95x
EV/EBITDA
25.23x
PEG ratio
4.25x
Profitability
How much profit each dollar creates
Gross margin
61.9%
Operating margin
34.9%
Net margin
28.6%
ROE
42.1%
ROA
9.4%
Health
Liquidity and balance-sheet strength
Debt / equity
1.16x
Current ratio
1.30x
Quick ratio
0.80x
Total debt
$44.26B
Total cash
$16.37B
Growth
How the business has been compounding
Revenue TTM
$49.28B
Revenue 5Y CAGR
5.5%
EPS TTM
3.33
EPS 5Y CAGR
11.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$14.63B
Free CF TTM
$5.30B
FCF margin
10.7%
Dividend
Shareholder payout
Yield
2.3%
Payout ratio
62.5%
Last ex-div date
2026-12-01