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How does this work?
A valuation is an assessment of the value of one share in a company, it is not necessarily the same as the price listed in the sharemarket. You can use a variety of methods to value a company, Valuecruncher uses Discounted Cash Flow (DCF) analysis to help people create the valuations you see below.
Valuecruncher Valuation
17.86%
from latest share price
Your Valuation
| Valuation | Compared to price | Member |
 Created
|
Views |
|---|---|---|---|---|
| $51.86 |
17.86%
|
Valuecruncher | 23 Nov 2008 | 0 |
| $30.92 |
 -28.9%
|
dweis | 19 Nov 2008 | 2 |
| $54.73 |
5.11%
|
TheCrunchBlog | 01 Sep 2008 | 275 |
| $62.23 |
20.04%
|
howai88 | 01 Jul 2008 | 40 |
| $56.55 |
-0.84%
|
GordonGekko | 09 May 2008 | 36 |
| $54.17 |
-10.24%
|
Sam | 23 Apr 2008 | 30 |
Price History
Recent Comments
| Updated: | 2 hours ago |
| Ticker: | KO |
| Market: | NYSE |
This valuation is part of this blog post:
http://blog.valuecruncher.com/2008/09/anyone-for-a-cheap-coca-cola/
KO grew revenues from US$21.7 billion in 2004 to US$28.9 billion in 2007 – a 9.9% compound annual growth rate. Our assumptions of revenues for the next three years are US$33.15 billion in 2008 growing to US$36.65 billion in 2010 – an 8.3% compound annual growth rate. We have projected EBITDA margins to be 29% in 2008 then flat at 30% to 2010. We have used a terminal growth rate of 3.25%. We calculated this terminal growth rate based on year three (2009-10) growth of 4.1% dropping to a 3.0% stable growth rate by year 10. We used a terminal capital expenditure number of US$1.75 billion. We have used a WACC (discount rate) of 8.0%.
WACC at 9% - Coca-Cola is a company with pretty stable cash flows (limited variability - therefore lower WACC). Terminal growth at 4.5%. I believe there is growth in emerging markets still to achieve. EBITDA margins at a healthy 30% - selling fizzy water is a great business model (but a big brand spend).