Ko intrinsic value

The intrinsic value of Coca-Cola Co (KO) is $58.98, which is significantly lower than the current market price of $71.79, indicating that KO is overvalued based on its intrinsic value.

1. Intrinsic Value Calculation:
   • The intrinsic value of KO is calculated using a Discounted Cash Flow (DCF) model, which takes into account the company's future cash flows and discounts them back to their present value.
2. Comparison with Market Price:
   • The market price of KO is higher than its intrinsic value, suggesting that the stock may be overpriced.
3. Analyst Price Targets:
   • Analysts have set price targets for KO that are below its intrinsic value, further indicating a potential undervaluation in the market price.
4. Financial Ratios:
   • The P/E ratio for KO is 28.69, which is relatively high, suggesting that the stock may be overvalued based on earnings.
   • The P/B ratio is 11.97, and the P/S ratio is 6.54, both of which are above the industry averages, indicating a potential for overvaluation.

5. Financial Performance:
   • KO has a dividend yield of 2.63%, which is lower than the industry average, suggesting that the stock may be undervalued based on income generation.
   • The company has a net income of $2.4 billion and a total revenue of $12.36 billion, with a revenue growth rate of 3.27% and a net income growth rate of -4.76%.
   • The dividend yield is 2.63%, which is lower than the industry average, suggesting that the stock may be undervalued based on income generation.

6. Debt and Cash Flow:
   • KO has a debt-to-equity ratio of 1.6, which is relatively low, suggesting that the company has a strong financial structure.
   • The company has a free cash flow of $6.69 billion, which is a strong indicator of its ability to generate cash and potentially increase shareholder value.

7. Market Sentiment:
   • The market sentiment around KO is positive, with analysts setting price targets that are below the intrinsic value, suggesting a potential for undervaluation.
8. Conclusion:
   • Based on the analysis, it is clear that KO is overvalued at its current market price of $71.79. The intrinsic value of KO is $58.98, and the company's financial ratios, performance, and market sentiment suggest that the stock may be undervalued based on its earnings, revenue, and cash flow generation.