Discounted Cash Flow (DCF) Analysis Levered
The Coca-Cola Company (KO)
$60.285
+0.45 (+0.76%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 35,410 | 31,856 | 37,266 | 33,014 | 38,655 | 39,874.83 | 41,133.16 | 42,431.20 | 43,770.20 | 45,151.45 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 7,106 | 7,627 | 10,471 | 9,844 | 12,625 | 10,733.21 | 11,071.92 | 11,421.31 | 11,781.74 | 12,153.53 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -1,675 | -1,347 | -2,054 | -1,177 | -1,367 | -1,720.36 | -1,774.65 | -1,830.65 | -1,888.42 | -1,948.01 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 5,431 | 6,280 | 8,417 | 8,667 | 11,258 | 9,012.85 | 9,297.27 | 9,590.66 | 9,893.31 | 10,205.52 |
Weighted Average Cost Of Capital
| Share price | $ 60.285 |
|---|---|
| Beta | 0.579 |
| Diluted Shares Outstanding | 4,323 |
| Cost of Debt | |
| Tax Rate | 21.36 |
| After-tax Cost of Debt | 2.93% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 6.351 |
| Total Debt | 42,761 |
| Total Equity | 260,612.05 |
| Total Capital | 303,373.05 |
| Debt Weighting | 14.10 |
| Equity Weighting | 85.90 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 35,410 | 31,856 | 37,266 | 33,014 | 38,655 | 39,874.83 | 41,133.16 | 42,431.20 | 43,770.20 | 45,151.45 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 7,106 | 7,627 | 10,471 | 9,844 | 12,625 | 10,733.21 | 11,071.92 | 11,421.31 | 11,781.74 | 12,153.53 |
| Capital Expenditure | -1,675 | -1,347 | -2,054 | -1,177 | -1,367 | -1,720.36 | -1,774.65 | -1,830.65 | -1,888.42 | -1,948.01 |
| Free Cash Flow | 5,431 | 6,280 | 8,417 | 8,667 | 11,258 | 9,012.85 | 9,297.27 | 9,590.66 | 9,893.31 | 10,205.52 |
| WACC | ||||||||||
| PV LFCF | 6,400.66 | 6,236.56 | 6,076.66 | 5,920.87 | 5,769.07 | |||||
| SUM PV LFCF | 40,438.29 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.87 |
| Free cash flow (t + 1) | 10,409.63 |
| Terminal Value | 268,982.60 |
| Present Value of Terminal Value | 202,236.54 |
Intrinsic Value
| Enterprise Value | 242,674.83 |
|---|---|
| Net Debt | 33,077 |
| Equity Value | 209,597.83 |
| Shares Outstanding | 4,323 |
| Equity Value Per Share | 48.48 |