Is The Coca-Cola Company (KO) Overvalued?
The Coca-Cola Company trades at 25.25x trailing earnings with a model margin of safety of 26.51%.
By TGMCharts Research / 11 resolved facts / trust score 100
Research lead
The Coca-Cola Company trades at 25.25x trailing earnings, while the TGMCharts fair-value model is $102 with margin of safety at 26.51%.
Key facts
- -The Coca-Cola Company closed at $80.31 on June 23, 2026.
- -Trailing P/E is 25.25x and price-to-sales is 7.03x.
- -Model fair value is $102 with margin of safety at 26.51%.
- -Five-year revenue CAGR is 8.07% and five-year EPS CAGR is 11.12%.
- -Earnings yield is 3.96% and net margin is 27.80%.
Primary research exhibit
Exhibit: KO P/E ratio history
The trailing earnings multiple is the main valuation exhibit because it connects the market price to reported earnings.
Latest P/E ratio: 25.25x as of June 23, 2026.
A P/E ratio of 25.25x has to be judged against the company's five-year EPS CAGR of 11.12%. If the multiple is high while EPS support is ordinary, the valuation thesis becomes more dependent on investor confidence than on fresh earnings power.
Executive Summary
The Coca-Cola Company should be read as a valuation snapshot, not as a live recommendation. The stock closed at $80.31 on June 23, 2026, trades at 25.25x trailing earnings, and carries a TGMCharts model margin of safety of 26.51%. That combination is the starting point for the overvaluation question because it ties the market price to both current earnings and the stored fair-value model.
The useful answer is not simply whether the stock looks expensive on a single metric. The better question is whether the multiple is supported by the business record underneath it. The Coca-Cola Company has a five-year revenue CAGR of 8.07% and a five-year EPS CAGR of 11.12%, so the valuation case has to be judged against both top-line growth and earnings conversion.
Market Price And Valuation Context
The P/E ratio is the headline multiple, but it is not enough by itself. Price-to-sales is 7.03x, earnings yield is 3.96%, and net margin is 27.80%. Those figures connect the share price to sales, earnings, and profitability quality, which is why the exhibits below use several TGMCharts chart pages instead of leaning on one ratio.
Evidence From TGMCharts Exhibits
Research exhibits
Evidence inside the argument
Supporting exhibit 1
Exhibit: KO price history
The price chart shows whether the valuation question is being driven by recent share-price movement.
Latest close: $80.31 as of June 23, 2026.
The close at $80.31 is the market anchor for this note. The fair-value model sits at $102, so the price chart helps separate a business-quality question from a market-entry-price question.
Supporting exhibit 2
Exhibit: KO price-to-sales history
Price-to-sales gives a second valuation lens when margins and earnings can move around the cycle.
Latest price-to-sales ratio: 7.03x.
Price-to-sales at 7.03x is most useful beside net margin of 27.80%. A richer sales multiple is easier to defend when margin quality is durable rather than temporarily elevated.
Counterpoint exhibit 3
Exhibit: KO earnings yield history
Earnings yield reframes valuation from an owner's-yield perspective rather than a multiple perspective.
Latest earnings yield: 3.96%.
The earnings yield of 3.96% is the counterweight to the P/E ratio. If the yield is thin relative to the quality and growth profile, the valuation case needs more help from future compounding.
Supporting exhibit 4
Exhibit: KO revenue history
Revenue history tests whether the valuation is being supported by real business expansion.
Five-year revenue CAGR: 8.07%.
Revenue growth is the first fundamental support line. A five-year revenue CAGR of 8.07% helps explain how much of the valuation story is coming from business growth instead of only multiple expansion.
The primary exhibit is the P/E history because it shows how much investors are paying for the current earnings stream. The supporting exhibits then ask whether price, sales, earnings, and margins are telling the same story. If the P/E line is rising faster than revenue and EPS support, the valuation case leans more on investor willingness to pay a higher multiple. If fundamentals are improving at the same time, the multiple deserves a more balanced reading.
Growth And Quality Support
The growth support is mixed into the claim ledger rather than inferred from a headline. Revenue growth of 8.07% shows the size of the business-expansion tailwind, while EPS growth of 11.12% shows what reached shareholders. Net margin of 27.80% then tells us whether earnings are being produced with enough quality to support a premium multiple.
Counterpoints And Risks
The main counterpoint is that a fair company can still be a demanding stock. If the current close is above the fair-value anchor of $102 and the margin of safety is 26.51%, future returns may depend more on continued growth and multiple discipline than on obvious undervaluation. The earnings-yield exhibit is included specifically to keep the valuation note from becoming a one-sided multiple discussion.
What Would Change The View
The valuation read should change if the fair-value model moves, if the latest close moves materially away from $102, or if revenue and EPS growth break from the stored trend. The daily precompute is the source of truth for that refresh, and the published article should be marked stale before the claim ledger drifts away from the current fundamentals.
Methodology And Caveat
This research insight is generated from precomputed TGMCharts fundamentals and a frozen claim ledger. The article uses only stored data, internal chart routes, and resolved stat tokens. It is general research context only, not personalized investment advice or a buy or sell call.
Additional exhibits
More chart evidence
Supporting exhibit 5
Exhibit: KO EPS history
EPS history checks whether reported earnings are keeping pace with the market multiple.
Five-year EPS CAGR: 11.12%.
A five-year EPS CAGR of 11.12% is the clearest support figure for a P/E-based conclusion. If EPS growth slows while the multiple remains elevated, the article should become more cautious after refresh.
Supporting exhibit 6
Exhibit: KO net margin history
Net margin shows whether the company has enough profitability quality to support its valuation.
Latest net margin: 27.80%.
Net margin of 27.80% is a quality signal, not a valuation verdict by itself. It matters because a premium multiple is more defensible when margins are structurally strong and less defensible when margins are peaking.
Research Trail
Continue through the underlying TGMCharts pages behind this note.
FAQ
Is KO overvalued?
The Coca-Cola Company trades at 25.25x trailing earnings with a model margin of safety of 26.51%. The cleanest read comes from comparing that valuation to five-year revenue CAGR of 8.07% and five-year EPS CAGR of 11.12%.
What valuation metric matters most for KO?
This article anchors on P/E, fair value, margin of safety, price-to-sales, earnings yield, revenue growth, and EPS growth. No single metric is treated as a recommendation.
How often should this KO valuation view refresh?
The article should refresh after the daily TGMCharts precompute job because the stored close, fair value, and claim ledger are dated to June 23, 2026.
More KO research insights
Dividend safety
Is The Coca-Cola Company's (KO) Dividend Safe?
The Coca-Cola Company yields 2.59% with a payout ratio of 68.20%.
Claim ledger
This article was generated from precomputed TGMCharts data. Numeric facts were resolved before publishing and are refreshed after the daily precompute job. If a required fact becomes unavailable, the article is marked stale instead of being silently rewritten.