The Coca-Cola Company(KO)
Beverages - Non-Alcoholic · Atlanta, GA
$88.00-0.36 (-0.41%)
Delayed quote: Sep 9, 2026, 10:20 AM EDT
Beverages - Non-Alcoholic · Atlanta, GA
Delayed quote: Sep 9, 2026, 10:20 AM EDT
TGM's two-stage DCF values The Coca-Cola Company (KO) between $22.65 and $51.94 depending on assumptions, with a base case of $33.92. Growth is taken from the company's own record (5-year revenue CAGR (FCF growth too volatile to use)), fading to 2.5% long-run; the discount rate (7.5%) reflects its beta.
What would today's price require?
$88.00 is justified only if free cash flow grows about +27.0% a year (fading to 2.5% long-run) at a 7.5% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 3.6%/yr | 8.5% | $22.65 |
| Base case | 6.6%/yr | 7.5% | $33.92 |
| Optimistic | 9.6%/yr | 6.5% | $51.94 |
| Third-party model estimate (FMP) | independent reference · retrieved Sep 9, 2026 · assumptions not provided | $81.42 | |
The FMP figure is a third-party point estimate. Its cash-flow forecast, discount rate, terminal growth, and valuation date are not included in the stored response, so TGMCharts presents it only as a reference—not as an intrinsic-value conclusion or price target.
Current Price
$88.00
Market-Implied Growth
+27.0%/yr
vs +6.6% 5Y actual
Model Scenario Range
$22.65 – $51.94
model output — not a price target
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for KO (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $7.4B · 4.30B shares · net debt $35.2B
Estimated Fair Value
$33.92
-61.5% vs $88.00
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 6.6%/yr FCF growth and 10-year horizon fixed. Green = above today's $88.00; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 5.5% | $46.56 | $53.42 | $62.56 | $75.35 | $94.52 |
| 6.5% | $35.40 | $39.51 | $44.66 | $51.26 | $60.06 |
| 7.5% | $27.96 | $30.67 | $33.92 | $37.89 | $42.84 |
| 8.5% | $22.66 | $24.56 | $26.77 | $29.39 | $32.52 |
| 9.5% | $18.69 | $20.08 | $21.67 | $23.50 | $25.64 |