| Valuation method | Value, CHF | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 39.90 | -20 |
| Intrinsic value (DCF) | 28.17 | -43 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 21.50 | -57 |
The Coca-Cola Company (KO.SW) is a global leader in the non-alcoholic beverage industry, renowned for its iconic Coca-Cola brand and a diverse portfolio of over 200 brands. Headquartered in Atlanta, Georgia, Coca-Cola operates in more than 200 countries, offering sparkling soft drinks, flavored waters, sports drinks, juices, dairy alternatives, teas, coffees, and energy drinks. The company's business model relies on a vast network of independent bottling partners, distributors, and retailers, ensuring widespread market penetration. As a dominant player in the consumer defensive sector, Coca-Cola benefits from strong brand loyalty, extensive distribution channels, and consistent demand for its products. With sustainability initiatives and innovation in low- and no-sugar beverages, Coca-Cola remains a resilient investment in the evolving beverage market.
Coca-Cola presents a stable investment opportunity due to its strong brand equity, global reach, and consistent dividend payouts. With a market cap of $213.8 billion and a beta of 0.62, it is a low-volatility stock suitable for conservative investors. The company reported $47.1 billion in revenue and $10.6 billion in net income for the latest fiscal year, with an EPS of $2.46. However, its high total debt of $44.5 billion and reliance on sugary beverages in a health-conscious market pose risks. Long-term growth depends on successful diversification into healthier alternatives and emerging markets.
Coca-Cola maintains a competitive edge through its unparalleled brand recognition, extensive distribution network, and economies of scale. Its global presence allows it to leverage regional preferences while maintaining a consistent core product lineup. The company’s direct-to-consumer and bottler-partner model ensures efficient logistics and market penetration. However, Coca-Cola faces increasing competition from health-focused beverage companies and private-label brands. Its reliance on carbonated soft drinks, which are declining in some markets, is a vulnerability. To counter this, Coca-Cola has expanded into water, sports drinks, and plant-based beverages through acquisitions like Topo Chico and fairlife. While its marketing prowess and innovation pipeline are strengths, regulatory pressures on sugar content and plastic waste remain challenges. Competitors like PepsiCo benefit from a more diversified snack and beverage portfolio, while niche players like Monster Beverage dominate the energy drink segment.