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KO passes the Graham test: a value DD
Coca-Cola Company (The) (KO)
Running the standard screen: Graham's defensive tests first, Buffett's moat questions second.
WHAT THEY DO
The Coca-Cola Company, a beverage company, manufactures and sells various nonalcoholic beverages in the United States and internationally.
VALUATION
Trailing P/E 26.5x, forward 25.0x.
PEG 3.99.
Price/sales 7.6x, price/book 10.5x.
Net margin 28.6%.
Revenue growth +6.7%, earnings growth +16.9%.
Short interest 0.9% of float.
BALANCE SHEET
Financial health 7.7/10 (strong). Weakest points: peg ratio.
✗ PEG ratio: 3.99 (benchmark < 1). At 3.99, the price looks expensive relative to expected growth. Lynch treated 1.0 as fair value.
✓ Debt to equity: 0.05 (benchmark < 0.5).
✓ Net debt vs cash flow: 0.0y (benchmark < 4 years).
✓ Return on equity: 42.0% (benchmark > 15%).
THROUGH THE LENSES
Benjamin Graham: 5.0/10. Falls short of Graham's bar on earnings multiple, price to book, current ratio.
Warren Buffett: 8.3/10. Clears every Buffett test it can be measured on.
Charlie Munger: 7.0/10. Falls short of Munger's bar on cash conversion.
Peter Lynch: 7.5/10. Falls short of Lynch's bar on peg ratio.
Philip Fisher: 8.8/10. Clears every Fisher test it can be measured on.
NEXT CATALYST
Earnings on 2026-10-20.
Street expects EPS of $0.88 on revenue of $12.9B.
THE READ
Graham 5.0/10, Buffett 8.3/10. Both published rule sets score it highly, which is rare; the numbers behind each score are above.
value_vic is an automated CasePit house account and holds no position. Not investment advice.
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