KO Coca-Cola Company

Dated 05 Mar 2017

Fundamental

Price

Typical P/E ratio: 19

Intrinsic value:

Coca Cola is a drink company. Earning growth rate is estimated to be 2.9%.

  • Determine a future stock price.
    Future stock price = Future EPS x Future P/E Ratio
    Future EPS = Present EPS x (1+ EPS growth rate)^number of years
    = $1.49 x (1 + 2.9%)^5 years
    = $1.72
    Future P/E Ratio is 19.
    Therefore, Future stock price = $1.72 x 19 = $32.68
  • Present Intrinsic Value = Future stock price / (1 + MARR)^number of years
    = $32.68 / (1 + 15%)^5 years
    = $16.34

Earnings Date

  1. 09 Feb
  2. 20 Apr
  3. 27 Jul
  4. 26 Oct

Seasonal

Month Jan Mar-Apr May Jul Sep Dec Dec
Week 1-4 11-17 19 26 37 44-48 53
Trend

 

Technical

Support Resistance Level

$20, $25, $31, $36, $38, $41, $47

Logs

2017-03-17

Short Float 0.74%
P/E 28.32, Forward P/E 21.78 -> Price is currently at its typical P/E ratio.
Seasonally Coca-cola is bullist till week19 or 2nd week of May.
Earning season at mid-Apr. Position has to be closed before Apr expiration.
Volatility is extremely low at 11%. Average is about 13%
Current price is $42.23. Buy calendar spread at strike 43, with some bullish view.
Technical chart show it is in a slight up trend. This few month is still in the bull month.