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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 $ 53.86
Diluted Shares Outstanding 4,299.00
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 231,544.14
Total Capital 256,920.14
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 4,299.00
Equity Value Per Share 42.84

Results Unlevered DCF

Wacc / Long-term Growth -4 (%)-3 (%)-2 (%)-1 (%)0 (%)1 (%)2 (%)3 (%)4 (%)
8.32 (%) 19.86 Sell 21.21 Sell 22.98 Sell 25.42 Sell 28.99 Sell 34.71 Sell 45.35 Sell 72.14 Buy 266.30 Buy
7.82 (%) 19.14 Sell 20.31 Sell 21.82 Sell 23.85 Sell 26.72 Sell 31.09 Sell 38.55 Sell 54.23 Buy 108.15 Buy
7.32 (%) 18.51 Sell 19.53 Sell 20.82 Sell 22.53 Sell 24.88 Sell 28.31 Sell 33.82 Sell 44.07 Sell 69.85 Buy
6.82 (%) 17.95 Sell 18.84 Sell 19.96 Sell 21.42 Sell 23.37 Sell 26.13 Sell 30.34 Sell 37.53 Sell 52.62 Sell
6.32 (%) 17.44 Sell 18.23 Sell 19.21 Sell 20.46 Sell 22.10 Sell 24.36 Sell 27.67 Sell 32.97 Sell 42.84 Sell
5.82 (%) 16.99 Sell 17.69 Sell 18.55 Sell 19.63 Sell 21.03 Sell 22.91 Sell 25.57 Sell 29.62 Sell 36.55 Sell
5.32 (%) 16.58 Sell 17.20 Sell 17.96 Sell 18.91 Sell 20.11 Sell 21.69 Sell 23.87 Sell 27.06 Sell 32.16 Sell
4.82 (%) 16.20 Sell 16.77 Sell 17.44 Sell 18.27 Sell 19.31 Sell 20.66 Sell 22.47 Sell 25.03 Sell 28.94 Sell
4.32 (%) 15.86 Sell 16.37 Sell 16.97 Sell 17.71 Sell 18.62 Sell 19.78 Sell 21.30 Sell 23.40 Sell 26.47 Sell