| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 25 | 27.8x | 17.3x | Bottom tier | |
Growth | 43 | 6.5% | 7.1% | Around median | |
Quality | 88 | 15.0% | 4.5% | Top tier | |
Safety | 68 | 1.9x | 2.6x | Top tier | |
Capital Return | 80 | 2.24% | 0.06% | Top tier | |
Momentum | 95 | 24.4% | -1.6% | Top tier | |
Sentiment | 71 | 14 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
71% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
The Coca-Cola Company, listed under ticker KO on NYSE, operates in nonalcoholic beverages through a portfolio that includes Coca-Cola, Sprite, Powerade, fairlife, and Fuze Tea, and a network spanning more than 200 countries and territories. Its business involves selling beverage concentrates and working with bottling partners to distribute its products through stores, restaurants, and hotels. It aims to increase consumption by diversifying brands, package sizes, and price points, while the shift toward a less asset-intensive model supports a focus on brands, marketing, and distribution capabilities.
In quarter 2 of fiscal year 2026, ended 2026-07-03, revenue according to EL7 data was $13.4 billion, net income was $4.4 billion, and diluted earnings per share were $1.03. Gross margin was 62.9%, operating margin as calculated by EL7 was 34.9%, and operating cash flow according to EL7 data was $5.5 billion for the same period. A reliable year-over-year comparison of revenue or changes in margins is unavailable because the definition of the revenue line item differs between the periods.
In quarter 2 of fiscal year 2026, ended 2026-07-03, sales volume growth extended across all operating units in Asia Pacific and across the Europe, Middle East, and Africa units, while North America volumes grew 3% compared with the same quarter of the previous year. However, broader demand did not translate evenly into earnings: Europe, Middle East, and Africa earnings declined because of investment timing, and comparable operating income in Asia Pacific fell amid investment in expanding the consumer base. Over the trailing 12 months through 2026-07-03, revenue was $50.1 billion and net income was $14.3 billion, making sustained profitability and cash conversion central to assessing Coca-Cola's business.
Q2 FY2026
Last 12 months to 2026-07-03
When: 2026-10-27
Sustaining global sales volume growth at the 5% threshold
Maintaining operating margin as calculated by EL7 at the 34.9% threshold
The median analyst target is $96, within a range of $86 to $104 from 6 analysts, reflecting their growth expectations, while the industry-multiple valuation is $61, within a range of $49 to $100, based on next year's earnings and a median multiple of 17.6 across 11 companies to value Coca-Cola in line with its peers. The discounted cash flow model estimates value at $58, within a range of $45 to $80 and at a discount rate of 8.7%, measuring the value of expected cash generation while following analysts' earnings estimates. The no-growth value is $26 at a discount rate of 8.7%, representing what remains if current after-tax operating profit stays constant forever. The industry-multiple estimate of $61 is close to the cash flow model's $58, while the analyst target rises to $96 and the no-growth estimate falls to $26, a difference that reflects the weight placed on expected growth versus peer comparisons and cash generation. Analyst targets tend to be optimistic by nature, while the cash flow model tends to be conservative, so these results should not be reduced to a single value.
Figures in the text are as of 2026-10-19; the live price is shown at the top of the page.
In quarter 2 of fiscal year 2026, ended 2026-07-03, global sales volumes grew 5% compared with the same quarter of the previous year, versus 2% growth in price and sales mix. Trademark Coca-Cola volumes rose 5% and Powerade volumes rose 8% compared with the same quarter of the previous year, demonstrating a contribution from actual consumption. However, management explained that the period benefited from easier comparisons, weather, and FIFA World Cup, and that average volume growth over two years was 2%.
A news report dated 2026-10-17 stated that KFC will begin serving Coca-Cola products instead of Pepsi at 3700 U.S. locations starting in January 2027. This gives Coca-Cola an additional channel for consumption of its beverages in restaurants, following confirmation of winning back Marriott on the 2026-07-28 call. The financial terms of the KFC agreement were not disclosed, so its expected revenue or earnings cannot be determined. The transition starting in January 2027 also separates the implementation impact from the agreement's announcement date.
Automated analysis for informational purposes only — not investment advice.
When: Fiscal year 2026
Achieving comparable earnings per share growth within the 9% to 10% range
Operating cash flow according to EL7 data was $16.3 billion for the trailing 12 months through 2026-07-03, versus net income of $14.3 billion for the same period, representing cash conversion of 114%. Free cash flow as calculated by EL7 (operating cash flow minus capital expenditure) for the trailing 12 months through 2026-07-03 was $15.1 billion. These figures support the ability to fund operations, while total debt according to EL7 data remained at $43.5 billion versus cash and short-term investments of $12.9 billion in quarter 2 of fiscal year 2026, ended 2026-07-03.
On the 2026-07-28 call, management said that most production operations had resumed at fairlife's four U.S. facilities and that product availability in stores was largely unaffected. It added that the incidents did not affect results for quarter 2 of fiscal year 2026, ended 2026-07-03, and it did not expect a material impact in the second half of fiscal year 2026. The company aims to continue increasing production capacity at the Webster facility during the remainder of fiscal year 2026, prioritizing the availability of core products on shelves before expanding innovations.
The announcement expected on 2026-10-27 will test demand sustainability following global volume growth of 5% compared with the same quarter of the previous year in quarter 2 of fiscal year 2026, ended 2026-07-03. Coca-Cola's ability to maintain its fiscal year 2026 guidance of approximately 5% organic revenue growth and between 9% and 10% comparable earnings per share growth compared with the previous fiscal year is also a key focus. Asia Pacific profitability also warrants attention after its comparable operating income declined amid investment in expanding the consumer base. The tax dispute with the U.S. Internal Revenue Service remains a separate matter for which management did not specify a confirmed ruling date during the 2026-07-28 call.