Upside case
Bull case
$114+43.7%
KO would need investors to value it at roughly 35x earnings — about 11x more generous than today's 24x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated Jun 18, 2026
The Coca-Cola Company (KO) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
48
analysts
29 bullish · 3 bearish · 48 covering KO
Strong Buy
0
Buy
29
Hold
16
Sell
3
Strong Sell
0
Consensus Target
$86
+8.5% vs today
Scenario Range
$55 – $114
Model bear to bull value window
Coverage
48
Published analyst ratings
Valuation Context
24.3x
Forward P/E · Market cap $341.7B
KO price targets
Three scenarios for where KO stock could go
Current
~$79
Confidence
56 / 100
Updated
Jun 18, 2026
Where we are now
Current · $79
Bear
$55
Base
$87
Bull
$114
Market caseClosest to today
Base case
$87+9.1%
This is close to how the market is already pricing KO — at roughly 26x forward earnings. No dramatic re-rating needed, just steady execution on the core business.
Stress case
Bear case
$55-31.3%
If investor confidence fades or macro conditions deteriorate, a 8x multiple contraction could push KO down roughly 31% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
The Coca-Cola Company
KO · NYSEConsumer DefensiveBeverages - Non-AlcoholicDecember year-end
Coca-Cola is a global beverage company that manufactures and sells non-alcoholic drinks worldwide. It generates revenue primarily through concentrate sales to bottling partners (~40% of revenue) and finished product sales (~60%), with sparkling soft drinks like Coca-Cola, Sprite, and Fanta representing the majority of sales. Its key competitive advantage is an unparalleled global distribution network and one of the world's most valuable brand portfolios, creating massive economies of scale and pricing power.
Market Cap
$341.7B
Revenue TTM
$49.3B
Net Income TTM
$13.7B
Net Margin
27.8%
KO Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
92%Exceptional
12 quarters tracked
Revenue Beat Rate
75%Exceptional
vs consensus estimates
Avg EPS Surprise
+4.4%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$0.87/$0.83
Revenue
$12.5B/$12.6B
Q4 2025
EPS
$0.82/$0.78
Revenue
$12.5B/$12.4B
Q1 2026
EPS
$0.58/$0.56
Revenue
$11.8B/$12.0B
Q2 2026
EPS
$0.86/$0.81
Revenue
$12.5B/$12.2B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $0.87/$0.83 | +4.3% | $12.5B/$12.6B | -0.3% |
| Q4 2025 | $0.82/$0.78 | +5.3% | $12.5B/$12.4B | +0.4% |
| Q1 2026 | $0.58/$0.56 | +2.7% | $11.8B/$12.0B | -2.1% |
| Q2 2026 | $0.86/$0.81 | +5.9% | $12.5B/$12.2B | +1.9% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$50.6B
+2.7% YoY
FY2
$51.8B
+2.3% YoY
EPS Outlook
FY1
$3.22
+1.5% YoY
FY2
$3.32
+2.9% YoY
Trailing FCF (TTM)$12.6B
FCF Margin: 25.5%
Next Earnings
July 28, 2026
Expected EPS
$0.93
Expected Revenue
$13.2B
KO beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
KO Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $37.3B
Product Mix
Latest annual revenue by segment or product family
Pacific
84.6%
-18.6% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
North America
62.1%
+5.0% YoY
Tap, hover, or focus a slice to inspect segment detail.
Pacific is the largest disclosed segment at 84.6% of FY 2025 revenue, down 18.6% YoY.
North America is the largest reported region at 62.1%, up 5.0% YoY.
KO Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Expensive versus peers
Fair value est. $63 — implies -20.1% from today's price.
Premium to Fair Value
20.1%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
KO
26.1x
vs
S&P 500
24.4x
+7% premium
vs Consumer Defensive Trailing P/E
KO
26.1x
vs
Consumer Defensive
18.9x
+38% premium
vs KO 5Y Avg P/E
Today
26.1x
vs
5Y Average
25.5x
In line with benchmark
Forward PE
24.3x
S&P 500
18.8x
+29%
Consumer Defensive
14.2x
+71%
5Y Avg
—
—
Trailing PE
26.1x
S&P 500
24.4x
+7%
Consumer Defensive
18.9x
+38%
5Y Avg
25.5x
+2%
PEG Ratio
2.34x
S&P 500
1.66x
+41%
Consumer Defensive
1.92x
+22%
5Y Avg
—
—
EV/EBITDA
25.4x
S&P 500
15.2x
+67%
Consumer Defensive
11.1x
+130%
5Y Avg
24.7x
+3%
Price/FCF
64.5x
S&P 500
20.7x
+212%
Consumer Defensive
15.3x
+322%
5Y Avg
38.3x
+68%
Price/Sales
7.1x
S&P 500
3.1x
+131%
Consumer Defensive
0.9x
+709%
5Y Avg
6.1x
+16%
Dividend Yield
2.56%
S&P 500
1.91%
+34%
Consumer Defensive
3.06%
-16%
5Y Avg
2.94%
-13%
| Metric | KO | S&P 500 | Consumer Defensive | 5Y Avg KO |
|---|---|---|---|---|
| Forward PE | 24.3x | 18.8x+29% | 14.2x+71% | — |
| Trailing PE | 26.1x | 24.4x | 18.9x+38% | 25.5x |
| PEG Ratio | 2.34x | 1.66x+41% | 1.92x+22% | — |
| EV/EBITDA | 25.4x | 15.2x+67% | 11.1x+130% | 24.7x |
| Price/FCF | 64.5x | 20.7x+212% | 15.3x+322% | 38.3x+68% |
| Price/Sales | 7.1x | 3.1x+131% | 0.9x+709% | 6.1x+16% |
| Dividend Yield | 2.56% | 1.91% | 3.06% | 2.94% |
KO trades above S&P 500 benchmarks on 5 of 6 measured multiples — commands a broad premium across most valuation dimensions.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolKO Financial Health
Verdict
Exceptional
KO generates $12.6B in free cash flow at a 25.5% margin — 15.8% ROIC signals a durable competitive advantage · returns 2.8% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$49.3B
Revenue Growth
TTM vs prior year
+5.1%
Gross Margin
Gross profit as a share of revenue
61.7%
Operating Margin
Operating income divided by revenue
29.3%
Net Margin
Net income divided by revenue
27.8%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$3.18
Free Cash Flow (TTM)
Cash generation after capex
$12.6B
FCF Margin
FCF as share of revenue — the primary cash quality signal
25.5%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
15.8%
ROA
Return on assets, trailing twelve months
13.1%
Cash & Equivalents
Liquid assets on the balance sheet
$10.3B
Net Debt
Total debt minus cash
$35.2B
Debt Serviceability
Net debt as a multiple of annual free cash flow
2.8× FCF
~2.8 years to full repayment at current FCF run-rate
ROE *
Return on equity, trailing twelve months
41.1%
* Elevated by buyback-compressed equity — compare ROIC (15.8%) for an undistorted picture of capital efficiency.
Shareholder Returns
How capital is returned to owners
Total shareholder yield
2.8%
Dividend
2.6%
Buyback
0.2%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$746M
Dividend / Share
Annualized trailing dividend per share
$2.04
Payout Ratio
Share of earnings distributed as dividends
67.0%
Shares Outstanding
Declining as buybacks retire shares
4.3B
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt). ROE marked * where buyback-compressed equity base may inflate the figure.
Open full ratios pageKO Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated June 17, 2026
High Risk
Competitive Pressures
Intensified competition from large entrants using aggressive pricing strategies, particularly in key markets like India.
Medium
Valuation Concerns
Trailing P/E of 26.3x at a 10% premium to sector median, with a DCF-implied intrinsic range suggesting a -3% margin of safety.
Medium
Profitability Risks
India bottler trails leading peers on profitability, indicating potential challenges in emerging markets.
Lower
Market Sentiment
Hold valuation grade and beta of 0.35 reflect defensive risk profile but limited upside potential.
High Risk
Operational Risks
42 disclosed risk factors in recent earnings report highlight diverse challenges across operations and markets.
Medium
Revenue Growth Uncertainty
Bear case fair value of $67.50 implies 14.4% downside risk relative to recent share price, signaling revenue growth concerns.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why KO Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated June 17, 2026
Operating margin expansion
The bull case for Coca-Cola hinges on continued operating margin growth despite rising commodity costs in tea and other inputs.
Wide economic moat
Coca-Cola's strong brand and market position create a durable competitive advantage, as highlighted in moat analyses.
Berkshire Hathaway ownership
Significant institutional backing from Berkshire Hathaway (9.52% stake) signals long-term confidence in the company.
Brand strength and refreshment
Coca-Cola's global brand recognition and focus on refreshment drive consistent consumer demand.
Commodity cost management
Investors are optimistic about Coca-Cola's ability to navigate commodity cost pressures while maintaining profitability.
Long-term bullish sentiment
Multiple bullish theses from analysts and investors emphasize Coca-Cola's resilience and growth potential.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
KO Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$79.39
52W Range Position
75%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$65.35
+21.5% from the low
52-Week High
$84.04
-5.5% from the high
1 Month
-2.23%
3 Month
+4.50%
YTD
+14.9%
1 Year
+14.7%
3Y CAGR
+9.0%
5Y CAGR
+8.1%
10Y CAGR
+5.8%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
KO vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
24.3x
vs 18.1x median
+34% above peer median
Revenue Growth
+2.7%
vs +9.4% median
-71% below peer median
Net Margin
27.8%
vs 10.8% median
+157% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
KO KO The Coca-Cola Company | $341.7B | 24.3x | +2.7% | 27.8% | Buy | +8.5% |
PEP PEP PepsiCo, Inc. | $194.1B | 16.4x | +4.6% | 8.8% | Hold | +18.2% |
MNS MNST Monster Beverage Corporation | $89.3B | 39.9x | +9.4% | 23.1% | Buy | -0.8% |
CEL CELH Celsius Holdings, Inc. | $7.9B | 18.7x | +11.4% | 5.9% | Buy | +71.5% |
FIZ FIZZ National Beverage Corp. | $3.4B | 18.1x | +2.4% | 15.6% | Sell | -6.3% |
KDP KDP Keurig Dr Pepper Inc. | $41.8B | 13.5x | +16.2% | 10.8% | Buy | +5.7% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
KO Dividend and Capital Return
KO returns 2.8% total yield, led by a 2.56% dividend, raised 56 consecutive years.
Dividend WatchFCF Adequate
Total Shareholder Yield
2.8%
Dividend + buyback return per year
Buyback Yield
0.2%
Dividend Yield
2.56%
Payout Ratio
67.0%
How KO Splits Its Return
Div 2.56%
Dividend 2.56%Buybacks 0.2%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$2.04
Growth Streak
Consecutive years of dividend increases
56Y
3Y Div CAGR
5.0%
5Y Div CAGR
4.5%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$746M
Estimated Shares Retired
9M
Approx. Share Reduction
0.2%
Shares Outstanding
Current diluted share count from the screening snapshot
4.3B
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $1.06 | — | — | — |
| 2025 | $2.04 | +5.2% | 0.2% | 3.2% |
| 2024 | $1.94 | +5.4% | 0.7% | 3.8% |
| 2023 | $1.84 | +4.5% | 0.9% | 4.0% |
| 2022 | $1.76 | +4.8% | 0.5% | 3.3% |
FAQ
7 questionsKO Investor Questions
Common questions answered from live analyst data and company financials.
01Is The Coca-Cola Company (KO) stock a buy or sell in 2026?
The Coca-Cola Company (KO) is rated Buy by Wall Street analysts as of 2026. Of 48 analysts covering the stock, 29 rate it Buy or Strong Buy, 16 rate it Hold, and 3 rate it Sell or Strong Sell. The consensus 12-month price target is $86, implying +8.5% from the current price of $79. The bear case scenario is $55 and the bull case is $114.
02What is the KO stock price target for 2026?
The Wall Street consensus price target for KO is $86 based on 48 analyst estimates. The high-end target is $89 (+12.1% from today), and the low-end target is $83 (+4.5%). The base case model target is $87.
03Is The Coca-Cola Company (KO) stock overvalued in 2026?
KO trades at 24.3x times forward earnings. The stock's valuation is broadly in line with the broader market. Based on current multiples versus the peer group, the relative model signals expensive versus peers. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for The Coca-Cola Company (KO) stock in 2026?
The primary risks for KO in 2026 are: (1) Competitive Pressures — Intensified competition from large entrants using aggressive pricing strategies, particularly in key markets like India. (2) Operational Risks — 42 disclosed risk factors in recent earnings report highlight diverse challenges across operations and markets. (3) Valuation Concerns — Trailing P/E of 26. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is The Coca-Cola Company's revenue and earnings forecast?
Analyst consensus estimates KO will report consensus revenue of $50.6B (+2.7% year-over-year) and EPS of $3.22 (+1.5% year-over-year) for the upcoming fiscal year. The following year, analysts project $51.8B in revenue.
06When does The Coca-Cola Company (KO) report its next earnings?
The Coca-Cola Company is expected to report its next earnings on approximately 2026-07-28. Consensus expects EPS of $0.93 and revenue of $13.2B. Over recent quarters, KO has beaten EPS estimates 92% of the time.
07How much free cash flow does The Coca-Cola Company generate?
The Coca-Cola Company (KO) generated $12.6B in free cash flow over the trailing twelve months — a free cash flow margin of 25.5%. KO returns capital to shareholders through dividends (2.6% yield) and share repurchases ($746M TTM).