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General information
The Coca-Cola Company manufactures, markets, and distributes soft drink concentrates and syrups. The Company also distributes and markets juice and juice-drink products. Coca-Cola distributes its products to retailers and wholesalers in the United States and internationally.
  • Bad financial results growth rate -9.3% (average between last period year over year growth for revenue and EBITDA), there is slowdown compared to average historical growth rates (1.8%)
  • Dividend yield for the last twelve months 3.4%
  • Free cash flow yield 2.2% (LTM)
  • Share price is 26.7% higher than minimum and 20.2% lower than maximum for the last 3 years
  • The company is undervalued by EV / LTM EBITDA multiple compared to target level (22.9x vs 24.0x)
  • Fundamental value created in LTM (estimate) -6.8%
Key Financials
Ticker: KO
Share price, USD: 47.96
Common stocks: 4 284 491 377
Dividend Yield:  3.4%
FCF Yield LTM: 2.2%
EV / LTM EBITDA: 22.9x
Last revenue growth (y/y):  -9.0%
Last growth of EBITDA (y/y):  -9.7%
Historical revenue growth:  -3.0%
Historical growth of EBITDA:  6.6%
Target EV / EBITDA (hist 75% percentile): 24.0x
Fundamental value created in LTM: -6.8%
EV / LTM EBITDA mutiple calculation
Market Cap ($m): 205 484
Net Debt ($m): 33 448
EV (Enterprise Value): 238 932
EBITDA LTM ($m): 10 420
EV / LTM EBITDA: 22.9x

Revenue and EBITDA

Quarterly values ($m)

Change (y/y)

Cash Flow

Free Cash Flow ($m)

Net Debt / Cash and Equivalents ($m)

Share price and dividends

Share price

Payment USD per share

Multiple and potential

EV / LTM EBITDA and 75% percentile

Potential dynamics

Value Creation

Fundamental Value Creation is calculated as ratio of value created in the last period to current market cap of the company.

The fundamental value can be created in two ways:
• cash generation in form of dividend payments or debt reduction or share buybacks
• growth of the company enterprise value through improving financial results

The growth of enterprise value in the last period is estimated as product of:
• annualized increase of EBITDA in the last reporting period year over year
• relevant EV/EBITDA multiple (average between actual EV/EBITDA for the company and average general level of 10.0x is applied)

Parameter
#
Formula
Value
    
    
            EBITDA (pre LTM Q)
(1)
2 940
            EBITDA (last Q)
(2)
2 656
            EBITDA LTM
(3)
10 420
    
    
        EBITDA LTM / last Q
(4)
(3) / (2)
3.923
    Gain of EBITDA (mln $)
(5)
( (2)-(1) ) * (4)
-1 114
    
    
            EV
(6)
238 932
        Mult
(7)
(6) / (3)
22.9x
        Mult common
(8)
const
10.0x
    Mult avg
(9)
avgerage
16.5x
    
    
    Equity+
(10)
(5) * (9)
-18 345
    FCF LTM
(11)
4 429
    
    
Value+
(12)
(10) + (11)
-13 916
Cap
(13)
205 484
    
    
Fundamental value creation
(14)
(12) / (13)
-6.8%

Potential

EBITDA LTM       10 420
 
EBITDA E       10 338
Mult aim       24.0x
 
EV E       248 178
NetDebt corr       33 096
 
Cap E       215 082
Cap       205 484
Growth potential            4.7%