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Coca-Cola Company powerpoint
 

Coca-Cola Company powerpoint

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Created 4/29/10

Created 4/29/10

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    Coca-Cola Company powerpoint Coca-Cola Company powerpoint Presentation Transcript

    • The Coca-Cola Company
      (KO)
      Brad Schwer
    • Recommendation: Buy
      Estimated Value: $58.31-$59.31
      Current Price: $54.95
      Sector: Consumer StaplesIndustry: Soft Drinks
    • Company Information
      Fiscal year ends 12/31
      Non-alcoholic
      Carbonated and non-carbonated beverages
      Headquarters in Atlanta, GA
      Focus is on the syrup for beverages
      Sold to bottlers, distributors, and fountain retailers
    • Familiar Products
      Coke/ Diet Coke
      Dasani (bottled water)
      Sprite
      Fanta
      Vault (energy drink)
      Powerade
    • Coca-Cola: Buy
      Source: Edward Jones
    • Sales and EPS Growth
      • 5-year compound growth rate in sales: 7.0%
      • 5-year compound growth rate in EPS: 8.0%
    • SWOT Analysis
    • SWOT Analysis
    • Value Line Projections
      11.5% Yr to Yr Gain
      Baseline Projections
      12% Yr to Yr Gain
    • Value Line Projections
      7% Yr to Yr Gain
      Baseline Projections
      7% Yr to Yr Gain
    • P/E Valuation
      Average Forward P/E for S&P 500: 14.5
    • P/E Valuation
      5-year average P/E: 18
      Forward P/E: 16
      Averaged P/E multiple: 17x
      Estimated projection: 17*$3.43
      • $58.31 per share
    • DCF Input Data
    • Valuation
      DCF intrinsic value: $59.31
      P/E valuation: $58.31
      Valuation range
      • $58.31-$59.31
      Current stock price
      • $54.95 (Undervalued)
    • Recommendation: Buy
      Estimated Value: $58.31-$59.31
      Current Price: $54.95
    • Questions from the Board of Directors?
    • Appendix
    • Coca-Cola vs. PepsiCo (6-month)
    • Against the S&P 500 (6-month)
    • Foreign Currency Exposure
      Coca-Cola
      PepsiCo
      Generated 74% of net operating revenue from outside U.S.
      Uses 72 functional currencies
      Currency impact on net revenue
      • 2009: -11%
      Uses derivatives to hedge
      • Forward contracts
      • Purchase currency options
      Generated 48% of net operating revenue from outside U.S.
      Currency impact on net revenue
      • 2009: -5%
      Uses derivatives to hedge
      • Forward contracts
      • Commodity contracts
    • Acquisition
      Announced acquisition of North-American operations of Coca-Cola Enterprises (CCE)
      • 75% of CCE’s volume
      $12.9 billion of equity and debt
      Synergies of $350 million over 4 years
      Assume $8.8 billion in debt
      KO sells Norwegian and Swiss bottling operations to CCE for $822 million