Highly Regarded

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

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

In Line TTM fundamentals · sector averages from covered peers

KO trades at 31.5× TTM earnings — roughly in line with its Consumer Staples sector average of 36.9×.

The Numbers

P/E (TTM)

31.5×

Sector avg: 36.9×

P/S (TTM)

8.1×

Sector avg: 1.6×

Market Cap

$381.64B

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 $88.72 31.5×
WMT $104.83 36.7×
COST $943.80 50.6×
PEP $140.33 23.4×

Is the Multiple Justified?

August 9, 2026

The Coca-Cola Company (KO) currently exhibits a trailing twelve-month (TTM) Price/Earnings (P/E) multiple of 30.9x, which is below the Consumer Staples sector average of 36.0x. This valuation may reflect a market balancing the company's consistent performance with broader sector dynamics. Coca-Cola delivered robust Q2 2026 results, surpassing revenue and earnings expectations, driven by an 11% organic revenue growth and strong unit case volume across its diverse portfolio. The company's strategic focus on revenue growth management and expanding into new categories beyond traditional sodas, such as water and coffee, continues to support its performance. Despite its strong brand equity and extensive global distribution, the slight discount to the sector average could be influenced by investor considerations regarding the pace of innovation, evolving consumer preferences, or potential macroeconomic headwinds impacting discretionary spending within the broader consumer staples landscape. The company's raised full-year guidance indicates confidence in its ongoing strategy.

Sources

Frequently Asked Questions

Is KO overvalued or undervalued?
On trailing-twelve-month earnings, KO trades at 31.5x versus a Consumer Staples sector average of 36.9x in our coverage — a 14.7% 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

PG WMT PEP COST