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Discounted Cash Flow (DCF) Analysis Unlevered


Coca-Cola Company (The)

Coca-Cola Company (The) (KO)

Consumer Defensive

Operating Data

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 46,854.0045,996.5744,294.7041,862.9235,411.8431,856.4929,534.1627,381.1225,385.0323,534.4621,818.80
Revenue (%)
EBITDA 13,873.4711,756.7212,415.8010,633.188,909.6210,063.478,139.617,546.246,996.126,486.106,013.26
EBITDA (%)
EBIT 11,896.239,778.8710,444.698,845.637,648.968,977.166,949.396,442.785,973.105,537.665,133.96
EBIT (%)
Depreciation 1,977.241,977.851,971.111,787.551,260.661,086.311,190.231,103.461,023.02948.44879.30
Depreciation (%)

Balance Sheet Data

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Total Cash 20,269.0421,673.5819,901.6122,199.9120,673.4316,116.2014,634.1713,567.3412,578.2811,661.3310,811.22
Total Cash (%)
Account Receivables 4,872.824,466.273,942.233,855.573,668.673,685.802,959.322,743.592,543.582,358.152,186.24
Account Receivables (%)
Inventories 3,275.093,100.172,901.302,675.042,655.893,070.972,155.991,998.821,853.111,718.021,592.77
Inventories (%)
Accounts Payable 9,576.969,236.119,660.679,490.328,746.739,531.466,872.606,371.595,907.105,476.475,077.24
Accounts Payable (%)
Capital Expenditure -2,441.09-2,184.84-2,467.21-2,114.08-1,572.29-1,102.23-1,399.92-1,297.86-1,203.25-1,115.53-1,034.21
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 54.35
Diluted Shares Outstanding 4,259.00
Cost of Debt
Tax Rate 20.14
After-tax Cost of Debt -0.96
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.57
Total Debt 25,376.00
Total Equity 231,476.65
Total Capital 256,852.65
Debt Weighting 9.88
Equity Weighting 90.12
Wacc

Build Up Free Cash

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 46,854.0045,996.5744,294.7041,862.9235,411.8431,856.4929,534.1627,381.1225,385.0323,534.4621,818.80
EBITDA 13,873.4711,756.7212,415.8010,633.188,909.6210,063.478,139.617,546.246,996.126,486.106,013.26
EBIT 11,896.239,778.8710,444.698,845.637,648.968,977.166,949.396,442.785,973.105,537.665,133.96
Tax Rate 24.93%23.67%23.35%19.55%81.67%20.14%32.22%32.22%32.22%32.22%32.22%
EBIAT 8,930.247,464.298,006.147,116.411,402.167,168.804,710.414,367.024,048.663,753.523,479.89
Depreciation 1,977.241,977.851,971.111,787.551,260.661,086.311,190.231,103.461,023.02948.44879.30
Accounts Receivable -406.55524.0486.65186.91-17.13726.47215.73200.01185.43171.91
Inventories -174.93198.87226.2619.15-415.08914.97157.17145.71135.09125.24
Accounts Payable --340.85424.56-170.35-743.60784.74-2,658.87-501.01-464.49-430.63-399.23
Capital Expenditure --256.26282.38-353.14-541.79-470.05297.68-102.05-94.61-87.72-81.32
UFCF 10,907.479,426.5111,407.108,693.391,583.498,137.595,180.905,240.324,858.304,504.134,175.78
WACC
PV UFCF 4,872.934,635.834,042.403,524.933,073.71
SUM PV UFCF 55,642.75

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.32
Free cash flow (t + 1) 4,342.81
Terminal Value 187,190.07
Present Value of Terminal Value 137,786.91

Intrinsic Value

Enterprise Value 193,429.66
Net Debt 9,259.80
Equity Value 184,169.86
Shares Outstanding 4,259.00
Equity Value Per Share 43.24