One-glance verdict
Overvalued
$45.03 our estimate vs market $86.10
Wall Street consensus: $94.65 (110.2% higher than our fair-value estimate)
91% above our estimate, beyond the bull case
Fundamentals snapshot
The Coca-Cola Company
KO · NYQ · Consumer Defensive · Beverages - Non-Alcoholic
Current price
$86.10
52-week range
$65.84 - $92.49
Market cap
$370.45B
Balance sheet
Watch
9.02x Adequate
Net debt $27.89B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 2.8% last year.
- Reward Returns 42.1% on equity, ahead of 66% of its peers.
- Risk Net debt grew 7.9% over 3 years.
- Risk Stock trades 2.2% above its 5-year average P/E.
What this company does
The Coca-Cola Company
The Coca-Cola Company is a global beverage giant that sells hundreds of brands beyond its famous sodas, like Dasani water and Minute Maid juice. It makes most of its money not by bottling drinks itself, but by selling the concentrated syrups to a worldwide network of bottling partners. This business model keeps Coca-Cola's costs low and allows its products to be sold in nearly every country, making it a highly profitable and recognizable brand.
How the company got here
Coca-Cola was invented in 1886 by a pharmacist in Atlanta, Georgia, named Dr. John Pemberton, who first sold it at a local pharmacy for five cents a glass. A key turning point was the decision to sell the rights to bottle Coca-Cola, which allowed the business to expand rapidly across the U.S. and then the world. The company focused heavily on advertising to make its brand a household name and expanded its reach during World War II by supplying its drinks to U.S. soldiers. Over the years, it acquired other popular beverage brands like Minute Maid and Sprite to diversify beyond its original cola.
What it actually does
The Coca-Cola Company is a global beverage business that makes and sells a wide variety of non-alcoholic drinks. You would recognize many of its brands, such as Coca-Cola, Diet Coke, Sprite, Fanta, Dasani water, smartwater, Minute Maid juices, and Powerade sports drinks. The company's main business is not actually bottling the final drinks you buy in the store. Instead, it primarily creates the secret syrups and concentrates (the flavor base for the drinks) and sells them to a network of bottling partners around the world who then add water and carbonation, package them, and sell them to stores, restaurants, and vending machines.
Concentrate Operations
This is the core and most profitable part of Coca-Cola's business, making up the largest portion of its revenue. The company manufactures and sells the secret formulas, or concentrates, for its hundreds of drink brands to bottling companies. These partners, who are independent companies, pay Coca-Cola for the right to use these concentrates and the famous brand names. This business model allows Coca-Cola to be very profitable without owning many factories or trucks, a concept known as being 'asset-light'.
Finished Product Operations
While most of its business is selling concentrates, Coca-Cola also has its own bottling and distribution operations in some regions, which it calls Bottling Investments Group. In this segment, the company acts as the bottler itself, handling the entire process from mixing the final beverage to packaging and delivering it to retailers. This part of the business is much smaller than its concentrate operations and is often used to stabilize or build up bottling capabilities in certain markets before selling them to independent partners.
What management is betting on now
The company's leadership is focused on growing its wide range of beverage brands to cater to every occasion, not just sodas. They are heavily investing in marketing to attract younger consumers and using digital tools to better connect with customers and retailers. Another key strategy is to continue expanding in emerging markets (countries with growing economies) where there is more room for beverage sales to increase. Management also emphasizes making their supply chain (the network to get products from the factory to you) more efficient and promoting sustainability, such as improving recycling and water stewardship.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-1.73B
FY2024 Q4
$3.15B
FY2025 Q1
$-5.51B
FY2025 Q2
$3.37B
FY2025 Q3
$4.56B
FY2025 Q4
$2.87B
FY2026 Q2
$1.75B
Revenue
$12.47B
Net income
$3.92B
Diluted EPS
0.91
Operating cash flow
$2.02B
Free cash flow
$1.75B
Fetching…
Sources
Revenue
$11.82B
Net income
$2.27B
Diluted EPS
0.53
Operating cash flow
$3.76B
Free cash flow
$2.87B
Fetching…
Sources
Revenue
$12.46B
Net income
$3.70B
Diluted EPS
0.86
Operating cash flow
$5.04B
Free cash flow
$4.56B
Fetching…
Sources
Revenue
$12.54B
Net income
$3.81B
Diluted EPS
0.88
Operating cash flow
$3.81B
Free cash flow
$3.37B
Fetching…
Sources
Revenue
$11.13B
Net income
$3.33B
Diluted EPS
0.77
Operating cash flow
$-5.20B
Free cash flow
$-5.51B
Fetching…
Sources
Revenue
$11.54B
Net income
$2.19B
Diluted EPS
0.50
Operating cash flow
$3.95B
Free cash flow
$3.15B
Fetching…
Sources
Revenue
$11.85B
Net income
$2.85B
Diluted EPS
0.66
Operating cash flow
$-1.26B
Free cash flow
$-1.73B
Fetching…
Sources
Is it cheap or expensive?
Fair value $45.03 vs current price $86.10
Wall Street consensus is the average analyst price target: $94.65 (110.2% higher than our fair-value estimate).
Our most-likely fair value is $45.03 a share — about 47.7% below today's price of $86.10, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $27.9B. Interest coverage 9.0x.
Net debt
$27.89B
Interest coverage
9.02x
The Coca-Cola Company's profit covers its interest bill about 9.0 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
KO
BASELINE
The Coca-Cola Company
Total debt $44.26B Interest coverage 9.02x This is the baseline the peer rows are being compared against.
Total debt $53.21B Interest coverage 12.03x +33% vs KO Carries about 1.3x more debt cushion than KO.
Total debt $92.93M Interest coverage 38.30x +325% vs KO Carries about 4.2x more debt cushion than KO.
Total debt $33.53B Interest coverage 4.84x -46% vs KO Carries about 1.9x less debt cushion than KO.
Total debt $72.73B Interest coverage 4.05x -55% vs KO Carries about 2.2x less debt cushion than KO.
Total debt $22.20B Interest coverage 2.94x -67% vs KO Carries about 3.1x less debt cushion than KO.
What you should know
The case for and against KO
3 Rewards
2 Risks
Rewards
-
Revenue grew 2.8% last year.
-
Returns 42.1% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Net debt grew 7.9% over 3 years.
-
Stock trades 2.2% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
25.86x
Forward P/E
24.42x
P/B
10.25x
P/S
7.39x
EV/EBITDA
23.56x
PEG ratio
3.91x
Profitability
How much profit each dollar creates
Gross margin
61.9%
Operating margin
34.9%
Net margin
28.6%
ROE
42.1%
ROA
9.4%
Health
Liquidity and balance-sheet strength
Debt / equity
1.16x
Current ratio
1.30x
Quick ratio
0.80x
Total debt
$44.26B
Total cash
$16.37B
Growth
How the business has been compounding
Revenue TTM
$49.28B
Revenue 5Y CAGR
5.5%
EPS TTM
3.33
EPS 5Y CAGR
11.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$14.63B
Free CF TTM
$5.30B
FCF margin
10.7%
Dividend
Shareholder payout
Yield
2.5%
Payout ratio
62.5%
Last ex-div date
2026-09-15