A Business at a Glance
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COCA COLA CO
KO
$354.6B
Mkt Cap
$82.25
+1.33%
COCA COLA CO (KO) has a current P/E ratio of 27.1, compared to its historical median P/E of 23.2. The stock is currently considered Expensive based on its historical valuation range.
COCA COLA CO (KO) has a 5-year average return on invested capital (ROIC) of 18.8%. This indicates strong capital allocation and a potential competitive advantage.
COCA COLA CO (KO) has a market capitalization of $579.0B. It is classified as a mega-cap stock.
Yes, COCA COLA CO (KO) pays a dividend with a trailing twelve-month yield of 1.89%. The company also returns capital through share buybacks, with a buyback yield of 0.15%.
Based on historical P/E analysis, COCA COLA CO (KO) appears expensive. The current P/E of 27.1 is 16% above its historical median of 23.2. The estimated fair value CAGR (P/E method) is 7.6%.
COCA COLA CO (KO) operates in the Beverages industry, within the Consumer Defensive sector.
COCA COLA CO (KO) reported annual revenue of $47.9 billion in its most recent fiscal year, based on SEC EDGAR filings.
The Coca-Cola Company is a total beverage company that owns or licenses and markets numerous nonalcoholic beverage brands sold in more than 200 countries and territories, with 2.2 billion servings consumed daily worldwide. The company operates through two primary lines of business: concentrate operations, which generate revenues by selling beverage concentrates, syrups, and certain finished beverages to authorized bottling partners who then produce and distribute finished products; and finished product operations, which generate higher revenues but lower gross margins by selling finished beverages directly to retailers, distributors, and wholesalers, as well as through consolidated bottling operations and Costa retail stores. The company's portfolio spans multiple categories including Trademark Coca-Cola (which accounts for 47% of worldwide unit case volume), sparkling flavors, water, sports, coffee and tea, juice, value-added dairy and plant-based beverages, and emerging beverages, with sparkling soft drinks representing 69% of unit case volume. Distribution occurs through a network of independent bottling partners, distributors, wholesalers, and retailers, with the five largest bottling partners including Coca-Cola FEMSA, Coca-Cola Europacific Partners, and Coca-Cola HBC, serving major markets across Latin America, Europe, Asia-Pacific, and Africa. The company's competitive advantages include its portfolio of globally recognized brands, strong bottling and distribution system, and ability to connect with consumers through diverse product offerings tailored to local market preferences and lifestyles.
【Balanced growth with volume recovery】 Management expects organic revenue growth of 4%-5% in 2026, reflecting a more balanced contribution from volume and price-mix as inflation moderates, with particular emphasis on restoring volume growth in key emerging markets including India and China that faced headwinds in 2025. The company anticipates continued margin expansion through its revenue growth management capabilities and operational efficiencies, though management notes this is a longer-term play with priority given to strengthening consumer franchises and driving volume growth. Currency is expected to provide a modest tailwind to both revenues and earnings per share in 2026 based on current rates and hedging positions, while commodity cost inflation in areas such as tea and coffee is viewed as manageable, though geopolitical tensions present ongoing uncertainty. The company remains focused on balanced top-line growth across developed and emerging markets, with North America expected to continue momentum from 2025 while emerging markets work to recover from 2025 challenges, supported by targeted marketing investments and innovation initiatives.
| Metric | Target | Period |
|---|---|---|
| Organic revenue growth | 4%-5% | FY2026 |
| Comparable currency-neutral earnings per share growth (excluding acquisitions and divestitures) | 6%-7% | FY2026 |
| Comparable earnings per share growth | 8%-9% | FY2026 |
| Free cash flow | approximately $12.2 billion | FY2026 |
| Underlying effective tax rate | 19.9% | FY2026 |
Organic revenue growth (FY2026): “We continue to expect organic revenue growth of 4%-5%.”
Comparable currency-neutral earnings per share growth (excluding acquisitions and divestitures) (FY2026): “We now expect growth in comparable currency neutral earnings per share, excluding acquisitions and divestitures, of 6%-7%.”
Comparable earnings per share growth (FY2026): “All in, we now expect comparable earnings per share growth of 8%-9% versus $3 in 2025, which is an increase from our prior estimate of 7%-8% due to the lower effective tax rate.”
Free cash flow (FY2026): “We also expect to generate approximately $12.2 billion of free cash flow in 2026, through approximately $14.4 billion in cash from operations, less approximately $2.2 billion in capital investments.”
Underlying effective tax rate (FY2026): “Based on the latest analysis of our global operations, our underlying effective tax rate for 2026 is now expected to be 19.9%, which is a 1-point reduction versus our previous estimate.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 49.3B | 47.9B | 47.1B | 45.8B | 43.0B | 38.7B |
| Net Income | 13.7B | 13.1B | 10.6B | 10.7B | 9.5B | 9.8B |
| EPS | $1.95 | $3.04 | $2.46 | $2.47 | $2.19 | $2.25 |
| Free Cash Flow | 12.6B | 5.3B | 4.7B | 9.7B | 9.5B | 11.3B |
| ROIC | 21.5% | 22.7% | 18.4% | 16.8% | 19.9% | 16.3% |
| Gross Margin | 61.7% | 61.6% | 61.1% | 59.5% | 58.1% | 60.3% |
| Debt/Equity | 1.30 | 1.47 | 1.83 | 1.62 | 1.68 | 1.92 |
| Dividends/Share | $1.56 | $2.04 | $1.94 | $1.84 | $1.76 | $1.68 |
| Operating Income | 14.5B | 13.8B | 10.0B | 11.3B | 10.9B | 10.3B |
| Operating Margin | 29.3% | 28.7% | 21.2% | 24.7% | 25.4% | 26.7% |
| ROE | 40.7% | 46.0% | 41.9% | 41.3% | 40.5% | 46.2% |
| Shares Outstanding | 7,040M | 4,312M | 4,322M | 4,338M | 4,357M | 4,343M |
COCA COLA CO passes 6 of 9 quality checks, suggesting mixed fundamentals.
COCA COLA CO trades at 27.1x trailing earnings, compared to its 15-year median P/E of 23.2x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 66.8x vs a median of 25.6x. The company's 5-year average ROIC is 18.8% with a gross margin of 60.1%. Total shareholder yield (dividends + buybacks) is 2.0%. At current prices, the estimated annualized return to fair value is -6.6%.
COCA COLA CO (KO) has a net profit margin of 27.3%. This is a strong margin indicating high profitability.
COCA COLA CO (KO) generated $5.3 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
COCA COLA CO (KO) has a debt-to-equity ratio of 1.47. This indicates moderate leverage.
COCA COLA CO (KO) reported earnings per share (EPS) of $3.04 in its most recent fiscal year.
COCA COLA CO (KO) has a return on equity (ROE) of 46.0%. This indicates the company generates strong returns for shareholders.
COCA COLA CO (KO) has a 5-year average gross margin of 60.1%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 19 years of financial data for COCA COLA CO (KO), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
COCA COLA CO (KO) has a book value per share of $7.46, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects organic revenue growth of 4%-5% in 2026, reflecting a more balanced contribution from volume and price-mix as inflation moderates, with particular emphasis on restoring volume growth in key emerging markets including India and China that faced headwinds in 2025. The company anticipates continued margin expansion through its revenue growth management capabilities and operational efficiencies, though management notes this is a longer-term play with priority given to strengthening consumer franchises and driving volume growth. Currency is expected to provide a modest tailwind to both revenues and earnings per share in 2026 based on current rates and hedging positions, while commodity cost inflation in areas such as tea and coffee is viewed as manageable, though geopolitical tensions present ongoing uncertainty. The company remains focused on balanced top-line growth across developed and emerging markets, with North America expected to continue momentum from 2025 while emerging markets work to recover from 2025 challenges, supported by targeted marketing investments and innovation initiatives.
Based on recent SEC filings and earnings calls, COCA COLA CO (KO) has provided the following forward guidance: Organic revenue growth: 4%-5% (FY2026); Comparable currency-neutral earnings per share growth (excluding acquisitions and divestitures): 6%-7% (FY2026); Comparable earnings per share growth: 8%-9% (FY2026); Free cash flow: approximately $12.2 billion (FY2026); Underlying effective tax rate: 19.9% (FY2026).