KO Research Update — September 16, 2026
Updated Thesis
The Coca-Cola Company is a global non-alcoholic beverage concentrate, brand-management and bottling-system business with products sold in more than 200 countries and territories, supported by powerful trademarks, 2.2 billion daily servings and an entrenched distribution network. Business quality is high: TTM gross, operating and net margins are 61.9%, 29.6% and 28.6%, respectively, ROE is 43.0%, and revenue and earnings grew 6.7% and 16.1% year over year in the most recent quarter. KO appears undervalued versus the $102.44 fair-value estimate, implying 15.5% upside from $88.71, but the market is appropriately assigning caution because the shares trade in a very expensive historical valuation regime at 26.66x trailing earnings, 26.69x free cash flow, 7.61x sales and 20.79x EV/EBITDA.
The investment grade as of this refresh is C — average business quality. A-tier business, C-tier valuation; fair value implies 15.5% upside to $102.44, but very expensive historical multiples and limited 6.8% upside to the $94.73 average analyst target constrain conviction.
Grade Change
In this research cycle, the investment grade for The Coca-Cola Company moved from B to C. A-tier business, C-tier valuation; fair value implies 15.5% upside to $102.44, but very expensive historical multiples and limited 6.8% upside to the $94.73 average analyst target constrain conviction.
Key Metrics at a Glance
- Revenue growth: +6.7% year over year
- Net margin: 28.6%
- Fair value upside: +15.5% to our estimate of $102
Current price: $88.71
These figures reflect our most recent data pull and are one input into a multi-factor valuation framework.
Our 12–18 Month Outlook
Quality companies held over a multi-year horizon benefit from compounding fundamentals and the patience to ride through short-term volatility. The Coca-Cola Company remains in our covered universe with a average-quality assessment. We update research when material data changes — earnings revisions, management shifts, or regime changes in valuation — not on every price fluctuation.
Long-term accumulation of quality businesses at fair or better prices is the core of the Patient Accumulator approach. Research updates like this one inform whether to add, hold, or wait for a better zone — not whether to react to short-term price moves.
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