Business description of the company
The Coca-Cola Company is a global beverage company specializing in producing,
marketing, and selling non-alcoholic drinks. They include water, sparkling soft drinks,
sports beverages, dairy and plant-based drinks, enhanced water, and pure energy drinks.
Its brands include Coca-Cola, Diet Coke, Coca-Cola Zero, Fanta, Sprite, Georgia, Minute
Maid, Powerade, Minute Maid Pulpy, Aquarius, Del Valle, Simply, Gold Peak, Bonaqua,
Schweppes, Glaceau Smartwater, Fuze Tea, and Ice Dew. It operates across the Asia
Pacific, North and South America, the Middle- East, Europe and Africa. The organization
was formed by Asa Griggs Candler in 1886 and is currently headquartered in Atlanta, GA.
Untitled Spreadsheet
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Coca-Cola Co (The) (NYS: KO)
Exchange rate used is that of the Year End reported date
As Reported Annual Balance Sheet
Report Date
12/31/2020
Currency
USD
Audit Status
Not Qualified
Consolidated
Yes
Scale
Thousands
Cash & cash equivalents
6795000
Short-term investments
1771000
Total cash, cash equivalents & short-term investments 8566000
Marketable securities
2348000
Trade accounts receivable, gross
3670000
Less: allowances
526000
Trade accounts receivable, net
3144000
Raw materials & packaging
2106000
Finished goods
791000
Other inventory
369000
Inventories
3266000
Prepaid expenses & other assets
1916000
Assets held for sale
Assets held for sale - discontinued operations
Total current assets
19240000
Equity method investments
19273000
Other investments
812000
Other assets
6184000
Deferred income tax assets
2460000
Land
676000
Buildings & improvements
4782000
Machinery & equipment
14242000
Machinery, equipment & vehicle fleet
Property, plant & equipment - cost
19700000
Less accumulated depreciation
8923000
Property, plant & equipment - net
10777000
Trademarks with indefinite lives
10395000
Bottlers' franchise rights with indefinite lives
Goodwill
17506000
Other intangible assets
649000
Total assets
87296000
Accounts payable
3517000
Accrued marketing expenses
1930000
Variable consideration payable
1137000
Other accrued expenses
3352000
Accrued compensation
609000
Deferred tax liabilities
Accrued sales, payroll & other taxes
443000
Container deposits
157000
12/31/2019
USD
Not Qualified
Yes
Thousands
6480000
1467000
7947000
3228000
4495000
524000
3971000
2180000
851000
348000
3379000
1886000
20411000
19025000
854000
6075000
2412000
659000
4576000
13686000
18921000
8083000
10838000
9266000
109000
16764000
627000
86381000
3804000
2059000
3835000
1021000
442000
151000
Accounts payable & accrued expenses
11145000
Loans & notes payable
2183000
Current maturities of long-term debt
485000
Accrued income taxes
788000
Liabilities held for sale
Liabilities held for sale - discontinued operations
Total current liabilities
14601000
Notes
22550000
Debentures
1342000
Zero coupon notes
Australian dollar notes
400000
Euro notes
13821000
Swiss franc notes
1236000
Other long term debt
615000
Fair value adjustment
646000
Total debt before current portion
40610000
Less current portion
485000
Long-term debt
40125000
Other liabilities
9453000
Deferred income tax liabilities
1833000
Common stock
1760000
Capital surplus
17601000
Reinvested earnings
66555000
Net foreign currency translation adjustment
-12028000
Accumulated net gains (losses) on derivatives
-194000
Unrealized net gains (losses) on available for sale securities
28000
Adjustment to pension & other postretirement benefit liabilities
-2407000
Accumulated other comprehensive income (loss)
-14601000
Treasury stock, at cost
52016000
Equity attributable to shareowners of The Coca-Cola Company
19299000
Equity attributable to noncontrolling interests
1985000
Total equity
21284000
11312000
10994000
4253000
414000
26973000
14621000
1366000
168000
677000
12807000
1129000
548000
453000
31769000
4253000
27516000
8510000
2284000
1760000
17154000
65855000
-11270000
-209000
75000
-2140000
-13544000
52244000
18981000
2117000
21098000
Total Equity and Liabilities
87296000
86381000
Total Liabilities
66012000
65283000
Close End Share Price
$
54.84
55.35
12/31/2018
USD
Not Qualified
Yes
Thousands
8926000
2025000
10951000
5013000
3885000
489000
3396000
1862000
692000
212000
2766000
1962000
6546000
30634000
19407000
867000
4139000
2667000
485000
3838000
11922000
16245000
8013000
8232000
6682000
51000
10263000
274000
83216000
2498000
1787000
3352000
894000
315000
86000
12/31/2017
USD
Not Qualified
Yes
Thousands
6006000
9352000
15358000
5317000
4144000
477000
3667000
1729000
693000
233000
2655000
2000000
219000
7329000
36545000
20856000
1096000
4560000
334000
3917000
12198000
16449000
8246000
8203000
6729000
138000
9401000
368000
87896000
2288000
2108000
3071000
854000
347000
80000
12/31/2016
USD
Not Qualified
Yes
Thousands
8555000
9595000
18150000
4051000
4322000
466000
3856000
1565000
844000
266000
2675000
2481000
2797000
34010000
16260000
989000
4248000
589000
4574000
16093000
21256000
10621000
10635000
6097000
3676000
10629000
726000
87270000
2682000
2186000
2593000
857000
692000
372000
108000
8932000
13194000
4997000
378000
1722000
29223000
13619000
1390000
163000
723000
12994000
1128000
282000
62000
30361000
4997000
25364000
7638000
1933000
1760000
16520000
63234000
-11045000
-126000
50000
-1693000
-12814000
51719000
16981000
2077000
19058000
8748000
13205000
3298000
410000
37000
1496000
27194000
16854000
1559000
158000
760000
13663000
1148000
325000
13000
34480000
3298000
31182000
8021000
2522000
1760000
15864000
60430000
-8957000
-119000
493000
-1722000
-10305000
50677000
17072000
1905000
18977000
9490000
12498000
3527000
307000
710000
26532000
16922000
2111000
153000
741000
11567000
1304000
316000
97000
33211000
3527000
29684000
4081000
3753000
1760000
14993000
65502000
-9780000
314000
305000
-2044000
-11205000
47988000
23062000
158000
23220000
83216000
87896000
87270000
64158000
68919000
64050000
47.35
45.88
41.46
Untitled Spreadsheet
Powered by Clearbit
Coca-Cola Co (The) (NYS: KO)
Exchange rate used is that of the Year End reported date
As Reported Annual Income Statement
Report Date
Currency
Audit Status
Consolidated
Scale
Net operating revenues
Cost of goods sold
Gross profit
Stock-based compensation expense
Advertising expenses
Selling & distribution expenses
Other operating expenses
Selling, general & administrative expenses
Other operating charges
Operating income (loss)
Interest income
Interest expense
Equity income (loss) - net
Other income (loss) - net
Income before income taxes - U.S.
Income before income taxes - international
Income before income taxes
U.S. income tax expense (benefit) - current
State & local income tax expense (benefit) - current
International income tax expense (benefit) - current
Total current income taxes (benefit)
U.S. income tax expense (benefit) - deferred
State & local income tax expense (benefit) - deferred
International income tax expense (benefit) - deferred
Total deferred income taxes (benefit)
Income taxes
Net income (loss) from continuing operations
Income (loss) from discontinued operations
Consolidated net income (loss)
Less: net loss (income) attributable to noncontrolling interests
Net income attributablet to shareowners of the Cola-Cola Company
Weighted average shares outstanding - basic
Weighted average shares outstanding - diluted
Year end shares outstanding
Income (loss) per share from continuing operations - basic
Income (loss) per share - discontinued operations - basic
Net income (loss) per share - basic
Income (loss) per share from continuing operations - diluted
Income (loss) per share - discontinued operations - diluted
12/31/2020
USD
Not Qualified
Yes
Thousands
33014000
13433000
19581000
126000
2777000
2638000
4190000
9731000
853000
8997000
370000
1437000
978000
841000
3149000
6600000
9749000
296000
396000
1307000
1999000
-220000
21000
181000
-18000
1981000
7768000
-21000
7747000
4295000
4323000
4302000
1.8
-
Net income (loss) per share - diluted
Dividends per share
Total number of employees
Number of common stockholders
Foreign currency translation adjustments
Tax Rate
1.79
1.64
80300
197226
-911000
20%
12/31/2019
USD
Not Qualified
Yes
Thousands
37266000
14619000
22647000
201000
4246000
2873000
4783000
12103000
458000
10086000
563000
946000
1049000
34000
3249000
7537000
10786000
508000
94000
1479000
2081000
-65000
52000
-267000
-280000
1801000
8985000
-65000
8920000
4276000
4314000
4280000
2.09
-
12/31/2018
USD
Not Qualified
Yes
Thousands
31856000
11770000
20086000
225000
4113000
1701000
4268000
10307000
1079000
8700000
682000
919000
1008000
-1121000
888000
7462000
8350000
591000
145000
1337000
2073000
-386000
-81000
17000
-450000
1623000
6727000
-251000
6476000
-42000
6434000
4259000
4299000
4268000
1.58
-0.07
1.51
1.57
-0.07
12/31/2017
USD
Not Qualified
Yes
Thousands
35410000
13256000
22154000
219000
3958000
3257000
5062000
12496000
2157000
7501000
677000
841000
1071000
-1666000
-690000
7432000
6742000
5438000
121000
1257000
6816000
-1783000
14000
513000
-1256000
5560000
1182000
101000
1283000
-35000
1248000
4272000
4324000
4259000
0.28
0.02
0.29
0.27
0.02
2.07
1.6
86200
200770
74000
1.5
1.56
62600
206575
-2035000
0.29
1.48
61800
212331
861000
12/31/2016
USD
Not Qualified
Yes
Thousands
41863000
16465000
25398000
258000
4004000
5177000
5823000
15262000
1510000
8626000
642000
733000
835000
-1234000
113000
8023000
8136000
1147000
113000
1182000
2442000
-838000
-91000
73000
-856000
1586000
6550000
-23000
6527000
4317000
4367000
4288000
1.51
-
1.49
1.4
100300
219011
-626000
Untitled Spreadsheet
Ratios
2020
Current ratio
1.31771796
=current assets/current liabilities
Inventory Turnover
4.04303988
=Annualized cost of sales/Average inventory
DOS
=Receivables / Average sales per day
34.75979887
FA Turnover
=Sales / Net fixed assets
3.063375708
TA Turnover
=Sales / Total assets'
0.37818457
Debt ratio
=Total debt / Total debt + total equity
0.46519886
TIE (times-interest-earned)
=EBIT / Interest expense
22.97425191
Profit margin (net)
=Net income / Sales
0.234658024
ROA
=Net income / Total assets
ROE
=Net income / Total common equity
0.363982334
P/E
=Price / Earnings per share
30.46666667
0.088744043
2019
2018
2017
0.75671968
1.04828389
1.34386262
4.75801465
4.34237226
4.97410882
38.89376375
38.91072325
37.79878565
3.43845728
3.869776482
4.316713398
0.43141432
0.382811
0.40286247
0.36777764
0.3648457
0.39228179
39.39323467
34.66376496
42.10463734
0.239360275
0.201971371
0.035244281
0.103263449
0.077316862
0.014198598
0.42278889
0.337601007
0.065763819
26.48325359
31.35761589
158.2068966
Ratio Description
2016
1.28184833
6.1782364
33.62014189
3.936342266
0.4796952
0.3805546
57.11186903
0.155913336
0.074790879
0.281093885
27.45695364
20-year treasury bond on December 31, 2020 was 1.45%
Risk Free Rate
Risk Premium
Risk Market Return
Beta
Calculation for Coca cola's cost of Equity (Ke)
1.45%
6%
7.45%
0.69
Cost of Equity (CAPM)
Ke = Rf+Beta(Rm - Rf)
KO Cost of equity (Ke)
5.59%
Calculation for Coca cola's cost of Debt
Risk Free Rate
Tax Rate
Cost of Debt
1.45%
20.32%
1.16%
treasury bond on December 31, 2020 was 1.45%
lculation for Coca cola's cost of Equity (Ke)
Same as the 20-year treasury bond rate on December 31, 2020
Provided in the notes as 6%
Equivalent to Risk free rate + Risk premium
Calculation for Coca cola's cost of Debt
Coca Cola WACC
Market Capitalization (2020)
$ 235,700,000,000.00
Total debt (2020)
$ 44,420,000,000.00
Weight of Equity (We)
Weight of Debt (Wd)
Cost of Equity (Ke)
Cost of Debt (Kd)
84%
16%
5.59%
1.16%
WACC = (We*Ke) + (Kd*Kd(1-Tax))
4.85%
Coca Cola Valuation
NOA = (Total Liabilities & Equity- cash & cash equivalents- Investments) - (Total Liabilities-Long Term Debt-Short
NOA (2020)
69,215,000
NOPAT = EBIT *(1 - Tax Rate)
NOPAT
7,768,000
Net Operating Profit Margin
Net Operating Asset Turnover
0.24
0.476977534
KO
Sales Growth
Sales, rounded
NOPAT
NOA
Reported 2020
KO
DCF Model
Increase is NOA
FCFF
Discount Factor
Present Value of Horizon FCFF
Cumulative PV of Horizon FCFF
Present Value of Terminal FCFF
Total Firm Value
Less (plus NNO)
Less NCI
Corporate Value
Shares Outstanding
Equity Value Per Share (Intrinsic Value)
2020 Year End Share Price
Reported 2020
33,014,000
7,768,000
$ 69,215,000
$ 2,925,649
$ 205,990,489
$ 208,916,138
1985000
$ 206,931,138
4,302,000
$
48.10
$
54.84
My estimated KO stock price of $48.10 is slightly lower than the market price of $54.84 on December 31, 2020, indi
slightly undervalued on that date. Stock prices are a function of expected NOPAT and NOA, as well as the WACC d
stock price may be due to more optimistic forecasts or a lower discount rate compared to other investors' and analysts
a Cola Valuation
Liabilities-Long Term Debt-Short TermDebt)
WACC
Outstanding Shares
NNI
2021
15.40%
2022 Terminal Period
5.60%
38,098,156
40,231,653
8,964,272
9,466,271
$ 79,874,110 $ 84,347,060
2021
5%
4,302,000
1985000
1%
$
40,633,969
9,560,934
85,190,531
2022 Terminal Growth (1%)
$ 10,659,110 $ 4,472,950 $
$ (1,694,838) $ 4,993,321 $
0.95375
0.90963
$ (1,616,448) $ 4,542,097
54.84 on December 31, 2020, indicating that I believe the KO stock was
nd NOA, as well as the WACC doscount rate. Differences in estimated
red to other investors' and analysts' model assumptions.
843,471
8,717,463
KO Growth Estimates (Yahoo Finance) - https://finance.yahoo.com/quote/KO/analysis?p=KO
Assume that Terminal Growth is 1%
Purchase answer to see full
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