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 32.6× TTM earnings — roughly in line with its Consumer Staples sector average of 38.3×.

The Numbers

P/E (TTM)

32.6×

Sector avg: 38.3×

P/S (TTM)

8.4×

Sector avg: 1.6×

Market Cap

$395.49B

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 $91.94 32.6×
WMT $117.86 41.2×
COST $977.89 52.4×
PEP $128.40 21.4×

Is the Multiple Justified?

October 11, 2026

The Coca-Cola Company's P/E ratio of 31.2x is positioned below the consumer staples sector average of 35.5x. As a mature, global beverage leader with strong brand recognition and consistent dividends, its valuation reflects a stable business model. The slight discount to the sector average could be attributed to its mature growth profile compared to some faster-growing niche players or specific market dynamics. However, Coca-Cola is actively pursuing a bold growth strategy, emphasizing digital transformation, innovation in its product portfolio, and optimizing its ecosystem to attract new consumers and expand in developing markets. These efforts aim to sustain long-term growth and reinforce its defensive characteristics.

Sources

Frequently Asked Questions

Is KO overvalued or undervalued?
On trailing-twelve-month earnings, KO trades at 32.6x versus a Consumer Staples sector average of 38.3x in our coverage — a 14.9% 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 WMT PG PEP