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The Coca-Cola Company (KO)
Intrinsic Value (DCF)
Current$71.24
→
Intrinsic$13.42
-81%
$6.37$13.42$27.45
Current price reflects execution expectations above 8% growth — not unreasonable for quality businesses.
Range: Bear $6 → Bull $27. Current price implies expectations above the base case, closer to bull expectations.
Current price reflects assumptions at the upper end of our valuation range (bull case: $27).
| Discount ↓Growth → | 4% | 6% | 8% | 10% |
|---|---|---|---|---|
| 8% | $18 | $21 | $23 | $26 |
| 10% | $10 | $12 | $13 | $15 |
| 12% | $6 | $7 | $8 | $10 |
| 14% | $3 | $4 | $5 | $6 |
Bull Case
- Bull case ($27) with 10% growth, 8% discount rate
- Conservative 8% growth assumption is achievable based on track record
Bear Case
- Bear case ($6) implies 91% downside at 6% growth, 12% discount
- Trading 81% above base case — execution must exceed assumptions to justify
- Price exceeds bull case ($27) — requires exceptional execution
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5-Year Free Cash Flow Projection
Year 1$5.12B
Year 2$5.53B
Year 3$5.97B
Year 4$6.45B
Year 5$6.97B
Terminal$110.39B
📐 Model Inputs
Growth Rate8.0%5Y CAGR (cascade: 5Y→3Y→TTM)
Discount Rate9.5%WACC estimate
Terminal Growth3.0%Perpetuity rate
Base Free Cash Flow$4.74BTTM actual
Bear g×0.8, r+2%
Base Historical CAGR
Bull g×1.2, r−1.5%
DCF estimates based on historical growth rates extrapolated forward. See FAQ below for full methodology.