Highly Regarded

Is The Coca-Cola Company (KO) Stock Undervalued or Overvalued?

Trailing-twelve-month multiples vs Consumer Staples sector peers in our coverage

23% Discount TTM fundamentals · sector averages from covered peers

KO trades at 28.9× TTM earnings — a 23% discount to its Consumer Staples sector average of 37.7× in our coverage.

The Numbers

P/E (TTM)

28.9×

Sector avg: 37.7×

P/S (TTM)

7.5×

Sector avg: 1.6×

Market Cap

$350.75B

EPS (TTM): $2.82

Revenue (TTM)

$47.06B

Net income: $12.20B

Consumer Staples Peer Comparison

How KO's multiples stack up against sector peers we cover. Click any peer for its own valuation breakdown.

Stock Price P/E (TTM)
KO This page $81.54 28.9×
WMT $114.22 39.9×
COST $940.79 50.4×
PEP $137.10 22.8×

Is the Discount Justified?

July 6, 2026

The Coca-Cola Company's P/E ratio of 29.5x sits below its sector average of 35.7x, potentially reflecting a market view on its growth trajectory relative to the broader consumer staples sector. Recent results indicate solid performance, with Q1 2026 net revenues increasing 12% and organic revenue growing 10%. The company also achieved a 3% global unit case volume growth and expanded its operating margin to 35.0%, driven by revenue growth and cost management. Coca-Cola's consistent dividend increases and strong brand presence provide stability. While demonstrating robust operational execution and market share gains, the valuation discount might suggest investor caution regarding long-term growth acceleration compared to some peers within the sector.

Sources

Frequently Asked Questions

Is KO overvalued or undervalued?
On trailing-twelve-month earnings, KO trades at 28.9x versus a Consumer Staples sector average of 37.7x in our coverage — a 23.4% discount. Whether that's justified depends on growth, margins, and risk; see the context above.
What does the P/E ratio tell you?
Price-to-earnings compares a company's share price with its per-share profits. A higher multiple means investors pay more per dollar of earnings — often for faster expected growth — while a lower one can signal slower growth or higher perceived risk.
Why compare against the sector average?
Valuation multiples vary structurally between industries — software typically trades richer than banks or energy. Comparing KO with its own Consumer Staples peers is more informative than comparing against the whole market.
Is a cheap stock automatically a good buy?
No. A discount can be justified by weak growth or elevated risk (a "value trap"), and a premium can be earned by quality and consistency. Valuation is one input — pair it with the fundamentals and the AI context on this page.

Methodology

Multiples are computed from trailing-twelve-month fundamentals (from company filings) and the latest share price: P/E is price ÷ diluted EPS, and P/S is market cap ÷ revenue. Sector averages use the Consumer Staples names in our 50-stock coverage with positive earnings — a deliberately like-for-like, if imperfect, benchmark.

Stocks with negative trailing earnings are compared on price-to-sales instead. Multiples update with prices and fundamentals; AI context refreshes weekly.

Not Financial Advice

This page is for education and information only. Indicators are mechanical calculations, AI commentary can contain errors, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a qualified financial advisor. See our full disclaimer.

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Same question, Consumer Staples peers

COST PG PEP WMT