The Coca-Cola Company
🇺🇸 KO · NYSE/NASDAQ · US1912161007
Consumer
USD 80.82 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
25.4
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 80.82 ÷ 3.18 = 25.4
TTM period through: 2026-03-31
Forward P/E (estimated): 24.1
Based on analyst estimates
Reference: Provider P/E (Trailing): 25.2
Yield (Fwd)
2.62%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 2.57%
Div. Growth (5Y CAGR)
4.5%
Growth Streak
9 yrs
Consecutive years of increase
Net Debt/EBITDA (TTM)
1.8x
Latest quarter: 7.1x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-03-31
Latest quarter (2026-03-31): 7.1x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
66.8%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 80.1%
Cash Flow Payout (TTM): 75.0%
FCF Coverage (TTM): 1.15x
ROE
43.4%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
19.1x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Coca-Cola is a premier global consumer staples leader with an unmatched brand moat, exceptional profitability metrics, and a legendary dividend growth history. While the company's defensive characteristics remain highly attractive, the current valuation around $80 (P/E 25.5x) offers limited upside and the 2.6% yield falls below our strategy's threshold. Existing shareholders should maintain positions given the unquestionable quality and dividend safety, but new investors should wait for a better entry point closer to fair value.
Sector Context
Coca-Cola is a global beverage leader operating in the consumer staples sector, manufacturing and distributing non-alcoholic syrups and beverages. For dividend investors, consumer staples typically provide highly reliable, recession-resistant cash flows driven by brand loyalty and frequent repeat purchases, which often justifies a premium valuation.
📊 Strategy Analysis
- • Unparalleled brand moat and pricing power, driving exceptional profitability with an ROE of 43.4% and an expanding net margin of 27.3%.
- • Stellar track record of consistent dividend growth (64 consecutive years), demonstrating a deep commitment to shareholder returns.
- • Conservative leverage profile with Net Debt/EBITDA at 1.79x, sitting comfortably below the strategy's 3.0x threshold.
- • Free cash flow generation has improved, now adequately covering the dividend outlay with a 1.15x coverage ratio.
⚠ What to Watch
- • Current valuation is highly stretched at a TTM P/E of 25.45x, significantly exceeding the strategy's target 8-15x range and the $57.17 monopoly fair value upper bound.
- • The trailing dividend yield of 2.57% falls below the strategy's strict 3.0% minimum threshold for new income positions.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-05-16
Disclaimer: This information is for educational purposes only. Not financial advice.