The Coca-Cola Company (KO) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Consumer Defensive · Beverages - Non-Alcoholic
Is The Coca-Cola Company a safe investment right now?
The Coca-Cola Company's Altman Z-Score of 4.93 places it in the safe zone. Our fair value estimate is $65.00 (Fairly Valued). Moat rating: 3.7/5 stars.
Could The Coca-Cola Company go bankrupt? Altman Z-Score analysis
Z-Score of 4.93 is above 3.0, indicating the company is financially healthy by this metric.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives KO's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.0931 | 1.2 | 0.11 |
| B · Retained Earnings / Total Assets | RE / TA | 0.7669 | 1.4 | 1.07 |
| C · EBIT / Total Assets | EBIT / TA | 0.1684 | 3.3 | 0.56 |
| D · Market Cap / Total Liabilities | MCap / TL | 4.5536 | 0.6 | 2.73 |
| E · Revenue / Total Assets | Rev / TA | 0.4574 | 1.0 | 0.46 |
How has KO's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 4.9 | Safe |
| 2023 | 4.8 | Safe |
| 2024 | 4.62 | Safe |
| 2025 | 4.93 | Safe |
Source: Calculated from KO's latest 10-K filing on SEC EDGAR.
What is The Coca-Cola Company actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $3.11 | Proprietary blend of reported actuals + analyst consensus, weighted by α |
| Last Year EPS | $3.04 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $3.23 | 23 analysts consensus |
| Trailing P/E | 24.6x | Current market pricing |
| Fair P/E (β discount) | 20.9x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Stable | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $83.67 (23 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does The Coca-Cola Company have a durable competitive advantage?
Moat rating: 3.7/5.
What makes up KO's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 4/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 4/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is KO's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 19.9% | — |
| 2023 | 21.3% | Rising |
| 2024 | 21.2% | Stable |
| 2025 | 22.7% | Rising |
Source: ROIC calculated from SEC EDGAR filings.
Is The Coca-Cola Company's dividend safe?
Can The Coca-Cola Company afford its dividend?
Payout ratio is 67.1%. FCF covers the dividend 1.3x. 65 consecutive years of payments.
The Coca-Cola Company's key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $47.9B | $47.1B | $43.0B | Rising |
| Net Income | $13.1B | $10.6B | $9.5B | Rising |
| Free Cash Flow | $5.3B | $4.7B | $9.5B | Declining |
| Gross Margin | 61.6% | 61.1% | 58.1% | Rising |
Recent events that affect our KO analysis
KO earnings report scheduled
Upcoming report. Consensus EPS estimate: $0.81. Revenue estimate: $12.25B. Our current Fair Value: $65.00 — a significant beat or miss could shift this estimate.
KO analyst consensus: 79% bullish (19 of 24 analysts)
7 Strong Buy, 12 Buy, 5 Hold, 0 Sell, 0 Strong Sell. Consensus target: $83.67 (12.1% upside). Compare with our independent Fair Value: $65.00.
KO paid $0.5300/share dividend
Dividend Safety Grade: B. Payout ratio: 67.1%.
KO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
KO filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
KO beat EPS estimates by 2.7%
Reported EPS: $0.58 vs estimate $0.56. Earnings strength supports our Fair Value of $65.00 (12.9% below current price).
KO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
KO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
KO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
KO paid $0.5100/share dividend
Dividend Safety Grade: B. Payout ratio: 67.1%.
KO filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
KO beat EPS estimates by 5.3%
Reported EPS: $0.82 vs estimate $0.78. Earnings strength supports our Fair Value of $65.00 (12.9% below current price).
KO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
KO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
KO paid $0.5100/share dividend
Dividend Safety Grade: B. Payout ratio: 67.1%.
KO filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
KO beat EPS estimates by 3.9%
Reported EPS: $0.87 vs estimate $0.84. Earnings strength supports our Fair Value of $65.00 (12.9% below current price).
KO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
KO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
KO paid $0.5100/share dividend
Dividend Safety Grade: B. Payout ratio: 67.1%.
KO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
KO filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
KO beat EPS estimates by 1.9%
Reported EPS: $0.73 vs estimate $0.72. Earnings strength supports our Fair Value of $65.00 (12.9% below current price).
KO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
KO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
KO paid $0.5100/share dividend
Dividend Safety Grade: B. Payout ratio: 67.1%.
KO filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
KO beat EPS estimates by 6.4%
Reported EPS: $0.55 vs estimate $0.52. Earnings strength supports our Fair Value of $65.00 (12.9% below current price).
KO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about The Coca-Cola Company
What is The Coca-Cola Company stock price today?
The Coca-Cola Company (KO) stock price is $74.63 as of the latest market close, traded on the NYSE exchange.
What does The Coca-Cola Company do?
The Coca-Cola Company, a beverage company, manufactures and sells various nonalcoholic beverages in the United States and internationally. It provides Trademark Coca-Cola, sparkling soft drinks and flavors; water, sports, coffee, and tea; juice, value-added dairy, and plant-based beverages; and emerging beverages. It also offers beverage concentrates and syrups, as well as fountain syrups to fountain retailers comprising restaurants and convenience stores.
What is The Coca-Cola Company market cap?
The Coca-Cola Company has a market capitalization of $321.22B, classifying it as a mega-cap stock in the Consumer Defensive sector.
What sector and industry is KO in?
The Coca-Cola Company operates in the Consumer Defensive sector, specifically within the Beverages - Non-Alcoholic industry. It trades on the NYSE under the ticker symbol KO.
Is KO stock overvalued or undervalued?
Based on our valuation model, The Coca-Cola Company trades 14.8% above our fair value estimate — potentially overvalued.
- FairValueLabs Fair Value: $65.00
- Current Price: $74.63
- Valuation Zone: Fairly Valued
What is KO stock forecast and analyst target price?
Based on 23 Wall Street analysts, the consensus price target for The Coca-Cola Company is $83.67, implying upside of 12.1% from the current price.
- Analyst High Target: $90.00
- Analyst Low Target: $71.38
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is The Coca-Cola Company revenue and earnings growing?
Here are the analyst consensus growth estimates for The Coca-Cola Company:
- Revenue growth (current year est.): 1.8%
- EPS growth (current year est.): 7.5%
- Revenue growth (next year est.): 2.2%
- EPS growth (next year est.): 7.0%
What are The Coca-Cola Company's key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $47.9B | Rising |
| Net Income | $13.1B | Rising |
| Free Cash Flow | $5.3B | Declining |
| Gross Margin | 61.6% | Rising |
What is KO's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 24.6x
- Forward P/E (next 12 months est.): 21.6x
- FairValueLabs Fair P/E: 20.9x
How volatile is KO stock?
The Coca-Cola Company has a beta of 0.36, meaning it is less volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does The Coca-Cola Company have?
The Coca-Cola Company's balance sheet shows:
- Total Cash: $15.81B
- Total Debt: $47.91B
- Net Cash Position: $-32.11B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is The Coca-Cola Company's free cash flow?
The Coca-Cola Company generated $-1.46B in trailing twelve-month free cash flow (from $7.41B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does The Coca-Cola Company pay a dividend, and is it safe?
Yes, The Coca-Cola Company pays a regular dividend. Here are the key metrics:
- Dividend Yield: 2.7%
- Payout Ratio: 67.1%
- Consecutive Years Paid: 65
- 5-Year Dividend Growth: -20.6%
- FairValueLabs Safety Grade: B
Is The Coca-Cola Company at risk of going bankrupt?
The Coca-Cola Company's Altman Z-Score is 4.93, placing it in the safe zone (above 3.0) — bankruptcy risk is low. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does The Coca-Cola Company have a durable competitive advantage?
The Coca-Cola Company scores 3.7/5 stars (Solid moat · eroding) in our moat analysis:
- ROIC Stability: 4/5
- Gross Margin Trend: 4/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is KO's return on equity (ROE)?
The Coca-Cola Company's return on equity is 43.3%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy KO stock?
KO shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol KO
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is KO a value stock or speculative?
FairValueLabs classifies The Coca-Cola Company as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of The Coca-Cola Company?
The current CEO of The Coca-Cola Company is Mr. Henrique Braun.
What is KO's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $3.04
- Forward EPS (next 12 months est.): $3.45
- Analyst consensus EPS (this year): $3.23
- Analyst consensus EPS (next year): $3.45
Other Consumer Defensive companies analyzed by FairValueLabs
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
KO analysis methodology: How we calculate fair value, Z-Scores, and moat ratings