Equity valuation of the Coca-Cola company

Abstract

This dissertation has taken the perspective of an Investment Bank with the purpose of valuing the equity of The Coca-Cola Company, one of the leading companies in the non-alcohol beverage industry and one of the most recognised brands in the world. Several methods and articles from prestigious authors are discussed to end up with the most accurate result. The valuation is carried through using a discounted cash flow model of the Company’s free cash flow to firm. To challenge or strengthen the result of the discounted cash flow valuation, it is accompanied by a relative valuation model using multiples. The multiples are based on Coca-Cola’s top competitors, as well as companies with similar characteristics. The result of the valuation is a fair price of $53.82 and a HOLD recommendation. Lastly, the result is compared to the valuation done by Barclays, an internationally recognised investment bank. The result ends up being below the recommendation of the investment bank. Potential explanations being different assumptions of growth rates in revenues.

Date of Award	30 Jun 2021
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	António Borges de Assunção (Supervisor) & José Carlos Tudela Martins (Co-Supervisor)