The Coca-Cola Company (KO) DCF Valuation
Transparent DCF models put The Coca-Cola Company (KO)'s fair value in a range of $19.74 – $97.56 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $81.34 sits within that range — roughly fairly valued on these assumptions.
Reverse DCF: at today's $81.34, the market is pricing in roughly +20.9%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of +5.0%. The price is betting on acceleration above its track record.
Current Price
$81.34
Fair-Value Range
$19.74 – $97.56
Market-Implied Growth
+20.9%/yr
vs +5.0% 5Y actual
KO DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $7.3B · 4.30B shares · net debt $35.2B
Estimated Fair Value
$19.74
-75.7% vs $81.34
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $81.34; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $26.52 | $28.30 | $30.41 | $32.93 | $36.01 |
| 9.0% | $21.63 | $22.84 | $24.25 | $25.88 | $27.82 |
| 10.0% | $17.90 | $18.76 | $19.74 | $20.86 | $22.16 |
| 11.0% | $14.96 | $15.60 | $16.31 | $17.11 | $18.01 |
| 12.0% | $12.60 | $13.08 | $13.60 | $14.19 | $14.84 |
About The Coca-Cola Company
The Coca-Cola Company, a prominent global entity in the beverage sector, is dedicated to the creation, marketing, and worldwide sale of a broad spectrum of non-alcoholic refreshments. Its extensive product range encompasses effervescent soft drinks, including various flavored options; still and sparkling waters; sports beverages, coffees, and teas; diverse fruit juices; fortified dairy drinks; and plant-based alternatives, among other liquid offerings. In addition to finished products, the company provides beverage concentrates and syrups, specifically supplying fountain syrups to food service establishments like restaurants and convenience stores. These products are offered under an expansive portfolio of globally recognized brands, such as Coca-Cola, Diet Coke, Fanta, Sprite, Simply, Fresca, Powerade, Dasani, and Minute Maid, to name just a few. The organization leverages a sophisticated distribution network, involving independent bottling partners, a variety of distributors, wholesalers, and retailers, complemented by its own bottling and distribution operations. Established in 1886, the enterprise's central operations are based in Atlanta, Georgia.
- Sector
- Consumer Defensive
- Industry
- Beverages - Non-Alcoholic
- CEO
- Henrique Braun