Coca-Cola Company

Analyst Listing

The following analysts provide coverage for the subject firm as of May 2016:

Broker Analyst Analyst Email
William Blair Bhavan Suri bsuri@williamblair.com
Stifel Nicolaus Brad R. Reback rebackb@stifel.com
Pacific Crest Securities-KBCM Brent Bracelin bbracelin@pacific-crest.com
Drexel Hamilton Brian J. White bwhite@drexelhamilton.com
JMP Securities Greg Mcdowell gmcdowell@jmpsecurities.com
Cowen & Company Gregg Moskowitz gregg.moskowitz@cowen.com
DA Davidson Jack Andrews jandrews@dadco.com
Jefferies John DiFucci jdifucci@jefferies.com
SunTrust Robinson Humphrey John Rizzuto john.rizzuto@suntrust.com
Stephens Inc Jonathan B. Ruykhaver jonathan.ruykhaver@stephens.com
Atlantic Equities Josep Bori j.bori@atlantic-equities.com
Deutsche Bank Research Karl Keirstead karl.keirstead@db.com
BMO Capital Markets Keith Bachman keith.bachman@bmo.com
Evercore ISI Kirk Materne kirk.materne@evercoreisi.com
RBC Capital Markets Matthew Hedberg matthew.hedberg@rbccm.com
Raymond James Michael Turits michael.turits@raymondjames.com
Maxim Group Nehal Chokshi nehalchokshi@techinsightsresearch.com
Credit Suisse Philip Winslow philip.winslow@credit-suisse.com
Canaccord Genuity Richard Davis Jr. rdavis@canaccordgenuity.com
Guggenheim Securities Ryan Hutchinson ryan.hutchinson@guggenheimpartners.com
Needham Scott Zeller szeller@needhamco.com
Oppenheimer Shaul Eyal shaul.eyal@opco.com
FBN Securities Shebly Seyrafi sseyrafi@fbnsecurities.com
Mitsubishi UFJ Securities (USA) Stephen D. Bersey sbersey@us.sc.mufg.jp
Wedbush Securities Steve Koenig steve.koenig@wedbush.com
Northland Securities Tim Klasell tklasell@northlandcapitalmarkets.com
Bernstein Research Ali Dibadj  ali.dibadj@bernstein.com
BMO Capital Markets Amit Sharma amit.sharma@bmo.com
Deutsche Bank Research Bill Schmitz Jr. william.schmitz@db.com
Wells Fargo Securities Bonnie Herzog bonnie.herzog@wellsfargo.com
Consumer Edge Research Brett Cooper bcooper@consumeredgeresearch.com
Jefferies Kevin Grundy kgrundy@jefferies.com
Stifel Nicolaus Mark D. Swartzberg mswartzberg@stifel.com
RBC Capital Markets Nik Modi nik.modi@rbccm.com
Susquehanna Financial Group Pablo Zuanic pablo.zuanic@sig.com
Evercore ISI Robert Ottenstein robert.ottenstein@evercoreisi.com
Cowen & Company Vivien Azer vivien.azer@cowen.com
SunTrust Robinson Humphrey William B. Chappell Jr. bill.chappell@suntrust.com

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Primary Input Data

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Derived Input Data

Derived Input

Label

2015 Value

2016
Value

Equational Form

Net Operating Profit Less Adjusted Taxes NOPLAT 6,313 2,226 NOPLAT\, =\, EBIT\, x\, (1 \,-\, Avg \,\,Tax\,\, Rate\,\, on\,\, EBIT)
Free Cash Flow FCF 7,975 6,534 FCF\,=NOPLAT\,+\,Non-Cash\,Expenses-\Delta NWC\,-\,NCS
Tax Shield TS 196 154 TS\,=\,Interest\,\,Paid\,\,x\,\, Avg \,\,Tax\,\,Rate\,\, on\,\, Pre-Tax\,\, Income
Invested Capital IC 63,163 60,738 IC\,=\,Fixed\,\,Operating\,\,Assets\,\,+\,\,Net\,\, Working\,\, Capital
Return on Invested Capital ROIC 9.99% 3.66% ROIC\,=\,\frac { NOPLAT }{ IC }
Net Investment NetInv 5,484 (1,690) NetInv\,=\,{ {IC}_{1}}-{{IC}_{0}}+Depreciation
Investment Rate IR 86.87% -75.93% IR\,=\,\frac {NetInv}{NOPLAT}
Weighted Average Cost of Capital
WACCMarket 13.42% 10.59% WACC\,=\,\frac { E }{ V } { R }_{ E }\,+\,\frac { P }{ V } { R }_{ P }\,+\,\frac { D }{ V } { R }_{ D }\left( 1- Avg\,\, Tax\,\,Rate\,\,on\,\,Pre-Tax\,\,Income \right)
 WACCBook  6.60%  6.31%
Enterprise value
EVMarket 193,295  185,455 EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash
 EVBook  191,965  185,263
Long-Run Growth
g = IR x ROIC
8.68%  -2.78% Long-run growth rates of the income variable are used in the Continuing Value portion of the valuation models.
g = % \Delta GDP   2.50%  2.50%
Margin from Operations M  22.25%  24.28% M\,\,=\,\,\frac{EBIT}{SALES}
Depreciation/Amortization Rate D  16.86%  17.67% D\,\,=\,\,\frac{D+A}{EBITDA}

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Valuation Multiple Outcomes

The outcomes presented in this study are the result of original input data, derived data, and synthesized inputs.

Equational Form

Observed Value

Single-stage

multiple g solution

Two-stage valuation

model g solution

12/31/2015 12/31/2016 12/31/2015 12/31/2016 12/31/2015 12/31/2016

EV/SALES 

\frac {EV}{Sales} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(M)

 4.43  13.15  15.08%  13.96%  14.56%  12.80%

EV/EBITDA

\frac {EV}{EBITDA} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(1\,-\,D)

16.55 44.59 15.08% 13.96% 14.56% 12.80%

EV/NOPLAT

\frac {EV}{NOPLAT} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}

30.62 83.33 15.08% 13.96% 14.56% 12.80%

EV/FCFOPS

\frac {EV}{FCF_{OPS}} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)

24.24 28.38 15.08% 13.96% 14.56% 12.80%

EV/EBIT

\frac {EV}{EBIT} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)

19.90 54.16 15.08% 13.96% 14.56% 12.80%

EV/IC

\frac {EV}{IC} \,= \,\frac{ROIC\,  -\,  g}{WACC\,-\,g}

3.06 3.05 15.08% 13.96% 14.56% 12.80%

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