Latest Ratios: P/E Ratio 29.0x · EV/EBITDA 28.0x · ROE 43.2%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $379.0B | $301.5B | $269.0B | $255.7B | $276.7B | $257.0B | $237.1B | $238.8B | $203.6B | $198.4B | $181.1B |
| Enterprise Value | $414.2B | $336.7B | $303.9B | $289.8B | $307.8B | $291.5B | $274.7B | $276.5B | $238.7B | $240.1B | $218.2B |
| P/E Ratio → | 28.98 | 23.00 | 25.31 | 23.86 | 29.05 | 26.32 | 30.64 | 26.74 | 31.57 | 158.21 | 27.83 |
| P/S Ratio | 7.91 | 6.29 | 5.72 | 5.59 | 6.43 | 6.65 | 7.18 | 6.41 | 5.93 | 5.48 | 4.32 |
| P/B Ratio | 11.08 | 8.80 | 10.20 | 9.30 | 10.71 | 10.34 | 11.14 | 11.32 | 10.68 | 10.45 | 7.80 |
| P/FCF | 71.56 | 56.93 | 56.73 | 26.23 | 29.02 | 22.83 | 27.35 | 28.37 | 33.49 | 36.53 | 27.71 |
| P/OCF | 51.16 | 40.70 | 39.52 | 22.04 | 25.11 | 20.35 | 24.08 | 22.80 | 26.69 | 27.92 | 20.58 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 7.02 | 6.46 | 6.33 | 7.16 | 7.54 | 8.32 | 7.42 | 6.96 | 6.63 | 5.21 |
| EV / EBITDA | 27.97 | 22.73 | 27.46 | 23.29 | 25.29 | 24.79 | 26.08 | 24.14 | 23.31 | 26.63 | 20.89 |
| EV / EBIT | 30.10 | 19.08 | 20.61 | 20.01 | 24.49 | 20.79 | 24.56 | 23.56 | 26.02 | 31.00 | 24.60 |
| EV / FCF | — | 63.58 | 64.09 | 29.73 | 32.28 | 25.89 | 31.69 | 32.84 | 39.27 | 44.20 | 33.40 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 61.6% | 61.6% | 61.1% | 59.5% | 58.1% | 60.3% | 59.3% | 60.8% | 61.9% | 62.1% | 60.7% |
| Operating Margin | 28.7% | 28.7% | 21.2% | 24.7% | 25.4% | 26.7% | 27.3% | 27.1% | 26.7% | 21.4% | 20.7% |
| Net Profit Margin | 27.3% | 27.3% | 22.6% | 23.4% | 22.2% | 25.3% | 23.5% | 23.9% | 18.8% | 3.4% | 15.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 43.2% | 43.2% | 39.5% | 40.2% | 37.7% | 42.4% | 36.6% | 44.4% | 33.8% | 5.9% | 26.6% |
| ROA | 12.8% | 12.8% | 10.7% | 11.3% | 10.2% | 10.8% | 8.9% | 10.5% | 7.5% | 1.4% | 7.4% |
| ROIC | 15.8% | 15.8% | 12.2% | 14.3% | 14.1% | 13.1% | 11.5% | 13.4% | 12.0% | 9.6% | 10.6% |
| ROCE | 17.3% | 17.3% | 13.4% | 15.4% | 14.8% | 14.0% | 13.6% | 17.7% | 15.9% | 12.8% | 14.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.33 | 1.33 | 1.73 | 1.58 | 1.57 | 1.78 | 2.09 | 2.09 | 2.32 | 2.51 | 1.97 |
| Debt / EBITDA | 3.07 | 3.07 | 4.13 | 3.49 | 3.34 | 3.76 | 4.22 | 3.86 | 4.32 | 5.29 | 4.38 |
| Net Debt / Equity | — | 1.03 | 1.32 | 1.24 | 1.20 | 1.39 | 1.77 | 1.79 | 1.84 | 2.20 | 1.60 |
| Net Debt / EBITDA | 2.38 | 2.38 | 3.15 | 2.74 | 2.55 | 2.94 | 3.57 | 3.29 | 3.43 | 4.62 | 3.56 |
| Debt / FCF | — | 6.65 | 7.36 | 3.49 | 3.26 | 3.07 | 4.34 | 4.48 | 5.78 | 7.67 | 5.69 |
| Interest Coverage | 10.67 | 10.67 | 8.90 | 9.48 | 14.25 | 8.78 | 7.78 | 12.40 | 9.66 | 9.08 | 12.10 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.46 | 1.46 | 1.03 | 1.13 | 1.15 | 1.13 | 1.32 | 0.76 | 0.87 | 1.34 | 1.28 |
| Quick Ratio | 1.25 | 1.25 | 0.84 | 0.95 | 0.93 | 0.96 | 1.09 | 0.63 | 0.76 | 1.25 | 1.18 |
| Cash Ratio | 0.65 | 0.65 | 0.58 | 0.58 | 0.59 | 0.63 | 0.75 | 0.41 | 0.56 | 0.76 | 0.84 |
| Asset Turnover | — | 0.46 | 0.47 | 0.47 | 0.46 | 0.41 | 0.38 | 0.43 | 0.41 | 0.41 | 0.48 |
| Inventory Turnover | 4.16 | 4.16 | 3.88 | 4.19 | 4.25 | 4.50 | 4.11 | 4.33 | 4.25 | 5.17 | 6.16 |
| Days Sales Outstanding | — | 23.13 | 27.68 | 27.20 | 29.60 | 33.16 | 34.76 | 38.89 | 39.21 | 36.96 | 33.62 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.3% | 2.9% | 3.1% | 3.1% | 2.8% | 2.8% | 3.0% | 2.9% | 3.3% | 3.2% | 3.3% |
| Payout Ratio | 67.0% | 67.0% | 78.6% | 74.2% | 79.8% | 74.2% | 91.0% | 76.7% | 103.3% | 506.4% | 92.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.5% | 4.3% | 4.0% | 4.2% | 3.4% | 3.8% | 3.3% | 3.7% | 3.2% | 0.6% | 3.6% |
| FCF Yield | 1.4% | 1.8% | 1.8% | 3.8% | 3.4% | 4.4% | 3.7% | 3.5% | 3.0% | 2.7% | 3.6% |
| Buyback Yield | 0.2% | 0.2% | 0.7% | 0.9% | 0.5% | 0.0% | 0.0% | 0.5% | 0.9% | 1.9% | 2.0% |
| Total Shareholder Yield | 2.5% | 3.2% | 3.8% | 4.0% | 3.3% | 2.9% | 3.0% | 3.3% | 4.2% | 5.0% | 5.4% |
| Shares Outstanding | — | $4.3B | $4.3B | $4.3B | $4.3B | $4.3B | $4.3B | $4.3B | $4.3B | $4.3B | $4.4B |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying KO stock.
The Coca-Cola Company's current P/E ratio is 29.0x. The historical average is 33.3x. This places it at the 63th percentile of its historical range.
The Coca-Cola Company's current EV/EBITDA is 28.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 21.8x.
The Coca-Cola Company's return on equity (ROE) is 43.2%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 33.9%.
Based on historical data, The Coca-Cola Company is trading at a P/E of 29.0x. This is at the 63th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
The Coca-Cola Company's current dividend yield is 2.31% with a payout ratio of 67.0%.
The Coca-Cola Company has 61.6% gross margin and 28.7% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
The Coca-Cola Company's Debt/EBITDA ratio is 3.1x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Volume stagnation amid price-led growth
Metrics are mathematically derived from official filings.
Margin Expansion Defies Volume Stagnation
Gross margin reached 62.9% in Q2 2026, up from 62.4% a year earlier, per SEC filings, while operating margin expanded to 34.9%, indicating sustained pricing power despite flat volumes.
The 34.9% operating margin in Q2 2026 represents a 80 basis point improvement year-over-year, driven by price/mix and SG&A discipline, as COGS rose 6.4% but SG&A only 5.7%. This suggests the company is successfully passing through inflation without sacrificing profitability, though the reliance on pricing rather than volume growth may not be sustainable indefinitely. Net margin of 33.1% is further bolstered by a lower effective tax rate, but investors should monitor whether this tax benefit persists.
ROIC Recovery Masks Structural Efficiency
ROIC improved to 5.1% in Q2 2026 from 3.4% a year earlier, as reported in financial statements, but remains below the cost of capital, reflecting the asset-heavy bottling investments and goodwill from acquisitions.
The sequential improvement in ROIC from 2.0% in Q4 2025 to 5.1% in Q2 2026 is encouraging, yet the absolute level is modest for a company with such strong margins. This is partly due to the large equity base and the inclusion of bottling investments that drag on returns. ROE of 12.0% is healthier, but it is inflated by share buybacks and the relatively low equity base. The key driver of ROIC is margin expansion, not asset turnover, which remains low at 0.13x, underscoring the capital intensity of the bottling network.
Negative CCC Reflects Bottler Financing Power
Cash conversion cycle improved to -162 days in Q2 2026 from -263 days a year earlier, per company filings, as DPO compressed to 273 days, indicating reduced reliance on supplier financing but still strong working capital management.
The negative CCC is a hallmark of KO's business model, where it collects cash from customers long before paying suppliers, effectively using bottlers' and suppliers' capital. The recent shortening of the cycle is driven by a significant reduction in DPO from 398 days in Q1 2025 to 273 days in Q2 2026, which may reflect changes in payment terms or timing. DSO has also improved to 25 days, suggesting efficient receivables collection. However, the volatility in CCC across quarters (ranging from -340 to -162 days) indicates that working capital swings are large and can distort cash flow, as seen in the prior cash flow analysis.
Leverage Easing but Interest Coverage Remains Thin
Debt-to-equity fell to 1.14 in Q2 2026 from 1.64 a year earlier, per balance sheet data, while interest coverage improved to 15.8x from 8.2x, indicating reduced refinancing risk despite elevated debt levels.
The improvement in leverage metrics is notable, with total debt declining to $43.5B and equity rising to $36.1B, but the absolute debt load remains substantial. Interest coverage of 15.8x is comfortable, but it is sensitive to rising rates; a 100bp increase in rates could reduce coverage by roughly 1x, given the $43.5B debt. The D/EBITDA ratio of 8.82x in Q2 2026 is high, though it improved from 21.9x in Q4 2025, which was distorted by seasonal EBITDA. Investors should monitor the trajectory of debt reduction and the potential for refinancing at higher rates.
Liquidity Buffer Strengthens Amid Cash Flow Volatility
Current ratio improved to 1.30 in Q2 2026 from 1.03 in Q4 2024, per balance sheet data, with cash of $12.9B providing a solid buffer against short-term obligations and seasonal working capital swings.
The quick ratio of 1.12 indicates that even without inventory, the company can cover current liabilities, which is reassuring given the volatility in operating cash flow (e.g., -$5.2B in Q1 2025). The strengthening liquidity position is partly due to debt reduction and retained earnings growth. However, the reliance on short-term debt and commercial paper could be a vulnerability if credit markets tighten, though the current cash position mitigates immediate stress.
P/E Misleads on Growth and Cash Generation
The trailing P/E of 29.97 appears expensive, but it understates KO's cash generation; P/FCF of 74.01 is distorted by working capital swings, making EV/EBITDA of 28.84 a more reliable valuation metric.
The P/E ratio is commonly applied to KO, but it fails to capture the company's asset-light model and the significant equity income from bottling investments that does not flow through the top line. The high P/FCF is misleading because quarterly FCF is volatile due to working capital timing; over the last ten quarters, cumulative OCF was $23.9B versus net income of $32.0B, indicating that earnings are not fully converting to cash. EV/EBITDA of 28.84x is more appropriate as it normalizes for capital structure and non-cash items, but it still implies a premium for defensive growth. Investors should focus on organic revenue growth and free cash flow yield over a full cycle rather than a single quarter's P/FCF.