SuperworthCoca-Cola KO
- Market cap
- $398.9B
- PE
- 27.8×
- 10y median 27.8×
- Forward PE
- 27.3×
- 10y median 23.9×
- Price to sales
- 8.0×
- EV/EBIT
- 28.8×
- Revenue, 12 months
- $50.1B
- +7% on a year ago
- Net margin
- 28.6%
- Free cash flow yield
- 3.6%
A Superworth story
Priced as if the old soda giant has found a new gear
People are buying more Coke and margins sit near a decade high, but the shares have run well ahead of the profit
The richest price on its sales in ten years
Coca-Cola now costs about eight times its yearly sales, the most in ten years and well above its usual level of a little over six. The shares have climbed by more than a third in a year and hit their highest price ever last week. That is a growth-stock price for a company that has sold soda since 1886.
It sold the bottling plants and kept the profit
Coca-Cola once ran many of its own bottling plants. Selling most of them between 2017 and 2019 lifted its operating margin from about a fifth of sales to more than a quarter, since concentrate, the syrup bottlers turn into drinks, keeps far more of each dollar. A charge for fairlife, its milk brand, pulled 2024 down. Over the last four quarters it kept about 30 cents a dollar, close to its best in ten years.
People are buying more of it again
The growth is coming from more drinks, not only higher prices. In the second quarter, which ended in early July, Coca-Cola sold 5% more cases, led by India, China, the US and Brazil, with Coke Zero Sugar growing fastest. Revenue over four quarters grew 6.5% on a year earlier, the quickest pace in three years.
The price ran well ahead of the profit
Earnings per share over the last four quarters rose 18% in a year, or about 11% leaving out one-off items. The share price rose by more than a third, about three times as fast as the adjusted profit. So investors now pay noticeably more for each dollar of Coca-Cola's profit than they did a year ago.
The fear is a court case worth billions
Free cash flow, the cash left after investment, dipped twice. In September 2024 Coca-Cola deposited 6.0 billion dollars with the IRS, about five months of today's free cash flow, while it appeals a loss over how it priced dealings with its foreign units. A similar fairlife payment followed in early 2025. The court heard the appeal in June. A loss means none of the deposit comes back, and likely more for later years.
Near its dearest in five years on next year's profit
Analysts expect adjusted earnings over the next twelve months only about 5% above the last four quarters, which a longer first quarter flattered. Revenue is set to dip as Coca-Cola sells its African bottler. On those forecasts the shares cost about 27 times earnings, more than on almost any day in five years (history before late September is rebuilt with hindsight).
The bet is that management, not the analysts, has the pace right
Management guides comparable earnings up 9% to 10% this year, nearly twice the pace analysts expect over the next twelve months. At its usual multiple on forecasts, the shares would sit near their mid-July level, about an eighth lower. With no founder or disruption story, the price rests on the brand compounding. The third-quarter report later this month shows whether volume keeps growing and the guidance holds.
What has happened lately
- SEC, Coca-Cola reports second quarter 2026 results and raises full year guidanceUnit case volume grew 5%, organic revenue 6% and comparable EPS 11% to 0.97 dollars. Coca-Cola raised its 2026 outlook to about 5% organic revenue growth and 9% to 10% comparable EPS growth.
- SEC, Coca-Cola quarterly report for the period ended July 3, 2026Describes the IRS tax case: a 6.0 billion dollar deposit already paid, an appeal heard on June 25, 2026, and likely further liabilities for later years if it loses. Also covers the pending sale of its African bottler.
- Coca-Cola, Coca-Cola reports first quarter 2026 results and updates full year guidanceThe first report under chief executive Henrique Braun. Unit case volume grew 3% and comparable EPS rose 18% to 0.86 dollars, helped by six extra days in the quarter.
- SEC, Coca-Cola reports fourth quarter and full year 2024 resultsA 3.1 billion dollar charge for fairlife, the milk brand bought in 2020, cut the 2024 operating margin to 21.2% from 24.7%. The release also sets out a final fairlife payment of about 6.1 billion dollars due in 2025.
Headlines link to the original source.
Brought to you by Superworth
Why a stock is priced where it is, one chart at a time.
Charts
Financials
| Income statement | Q3 FY23 | Q4 FY23 | Q1 FY24 | Q2 FY24 | Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| $12B+8% | $10.8B+7% | $11.3B+3% | $12.4B+3% | $11.9B−1% | $11.5B+6% | $11.1B−2% | $12.5B+1% | $12.5B+5% | $11.8B+2% | $12.5B+12% | $13.4B+7% | |
| Cost of revenue | $4.7B+2% | $4.6B+3% | $4.2B−2% | $4.8B−2% | $4.7B+0% | $4.6B−1% | $4.2B−2% | $4.7B−2% | $4.8B+3% | $4.7B+2% | $4.6B+11% | $5B+5% |
| Gross profit | $7.3B+12% | $6.2B+11% | $7.1B+6% | $7.6B+7% | $7.2B−2% | $6.9B+12% | $7B−1% | $7.8B+4% | $7.7B+7% | $7.1B+2% | $7.9B+13% | $8.4B+8% |
| SG&A | $3.7B+12% | $3.8B+11% | $3.4B+5% | $3.5B+7% | $3.6B−1% | $4B+7% | $3.2B−4% | $3.5B−2% | $3.6B−1% | $4.2B+4% | $3.5B+7% | $3.7B+7% |
| $3.3B+6% | $2.3B+10% | $2.1B−36% | $2.6B+10% | $2.5B−23% | $2.7B+19% | $3.7B+71% | $4.3B+63% | $4B+59% | $1.8B−32% | $4.4B+19% | $4.7B+9% | |
| Interest expense | $368M+86% | $413M+36% | $382M+3% | $418M+12% | $425M+16% | $431M+4% | $387M+1% | $445M+7% | $391M−8% | $431M+0% | $375M−3% | $369M−17% |
| Pre-tax income | $3.5B+3% | $2.5B−1% | $3.9B−5% | $3B+5% | $3.4B−4% | $2.8B+13% | $4.1B+5% | $4.8B+58% | $4.2B+24% | $3B+6% | $4.6B+14% | $5.5B+14% |
| $454M−27% | $496M+12% | $687M−27% | $627M+75% | $530M+17% | $593M+20% | $722M+5% | $993M+58% | $500M−6% | $646M+9% | $645M−11% | $1B+4% | |
| Net income | $3.1B+9% | $2B−3% | $3.2B+2% | $2.4B−5% | $2.8B−8% | $2.2B+11% | $3.3B+5% | $3.8B+58% | $3.7B+30% | $2.3B+4% | $3.9B+18% | $4.4B+16% |
| $0.71+9% | $0.46−2% | $0.74+3% | $0.56−5% | $0.66−7% | $0.51+11% | $0.77+4% | $0.88+57% | $0.86+30% | $0.53+4% | $0.91+18% | $1.03+17% | |
| 4.3B−0% | 4.3B−0% | 4.3B−1% | 4.3B−1% | 4.3B−0% | 4.3B−0% | 4.3B−0% | 4.3B−0% | 4.3B−0% | 4.3B−0% | 4.3B+0% | 4.3B+0% |
EPS, diluted: 35 periods, Q4 FY95 to Q4 FY25: quarter's net income to common over its shares, to the cent.
Diluted shares: 29 periods, Q4 FY95 to Q4 FY25: share-days: the 12-month average less the 9-month, weighted by days. Q4 FY99 and Q4 FY17: a loss quarter: its basic count, share-days: the 12-month average less the 9-month, weighted by days.
From each company's 10-Q and 10-K filings, the newest version of each figure. Quarters are as filed (a fourth quarter is the year less its first nine months), fiscal years as the 10-K prints them, restated where a later 10-K restated them, and balance sheet lines as of the period's end. A quarter whose 10-Q isn't filed yet is from the company's results release. Growth is on the same period a year earlier. A dash is a period with no figure for the line: the filing doesn't print it, or it hasn't been read yet.
Estimates
Next earnings report: .
| Quarter | Revenue | Range | EPS | Range | Analysts |
|---|---|---|---|---|---|
| Q3 FY26 | $12.9B | $12.8B to $13B | $0.88 | $0.82 to $0.90 | 13 |
| Q4 FY26 | $11.1B | $10.6B to $12.2B | $0.60 | $0.56 to $0.65 | 12 |
| Q1 FY27 | $12.1B | $11.6B to $13.1B | $0.89 | $0.85 to $1.00 | 5 |
| Q2 FY27 | $13.1B | $12.6B to $14.3B | $1.03 | $0.98 to $1.14 | 5 |
| Q3 FY27 | $13B | $12.5B to $14.2B | $0.94 | $0.90 to $1.05 | 5 |
| Q4 FY27 | $11.6B | $11.2B to $12.7B | $0.66 | $0.62 to $0.73 | 6 |
| Q1 FY28 | $12.6B | $12.1B to $13.7B | $0.97 | $0.92 to $1.08 | 6 |
| Q2 FY28 | $13.8B | $13.3B to $15B | $1.12 | $1.07 to $1.25 | 6 |
Peers
Companies in Beverages - Non-Alcoholic nearest Coca-Cola's size, closest first.
| Company | Market cap | PE | Its 10y median PE | Fwd PE | P/S | Revenue growth | Net margin |
|---|---|---|---|---|---|---|---|
| KOCoca-Cola | $398.9B | 27.8× | 27.8× | 27.3× | 8.0× | +7% | 28.6% |
| PEPPepsiCo | $185B | 17.1× | 25.9× | 16.0× | 1.9× | +6% | 11.1% |
| MNSTMonster Beverage | $90.5B | 42.8× | 37.9× | 37.4× | 9.8× | +20% | 23.1% |
| KDPKeurig Dr Pepper | $47.2B | 35.0× | 25.9× | 14.2× | 2.3× | +27% | 7.1% |
| Peer median | $90.5B | 35.0× | 25.9× | 16.0× | 2.3× | +20% | 11.1% |
Investors who own it
Investors we follow who held Coca-Cola at the end of Jun 30, 2026, from their 13F filings.
- Warren BuffettBerkshire Hathaway10.9% of portfolio
- Lee AinslieMaverick Capital1.5% of portfolioadded
- Chris BloomstranSemper Augustus0.1% of portfolio
- Baillie GiffordBaillie Gifford0.0% of portfoliotrimmed
- Tom RussoGardner Russo & Quinn0.0% of portfoliotrimmed
More on Coca-Cola
Each number over time
- PE ratio
- Forward PE
- Price to sales ratio
- EV/EBIT
- Price to free cash flow
- Price to book ratio
- Dividend yield
- Market cap
- Revenue
- EPS
- Free cash flow
- Profit margin
- Shares outstanding
Where it ranks
- #2of 127Consumer staples stocks with the highest profit margins
- #1of 13Non-alcoholic beverage stocks with the highest profit margins
- #5of 10Non-alcoholic beverage stocks with the lowest PE ratio
- #10of 13Non-alcoholic beverage stocks with the fastest revenue growth
- #10of 13Non-alcoholic beverage stocks with the highest free cash flow yield
- #9of 11Non-alcoholic beverage stocks with the lowest EV/EBIT
Its groups
About
- Chief executive
- Henrique Braun, since 2026Longtime Coca-Cola executive, CEO since March 2026. James Quincey is executive chair. Source
- Industry
- Beverages - Non-Alcoholic
- Sector
- Consumer Defensive
Valuation data, not investment advice. Prices as of .