Category: 3. Business

• Wondering if Coca Cola at around $70 a share is still a sweet deal or if most of the upside has already been poured out? You are not alone, and that is exactly what we are going to unpack here.

• Despite a recent 3.3% pullback over the last week, the stock is still up 2.6% over 30 days, 13.9% year to date, and 54.4% over 5 years. This suggests the long term story has remained resilient even as short term sentiment wobbles.

• Much of the recent share price action has been shaped by shifting expectations around consumer staples as investors weigh sticky inflation against the appeal of defensive, cash generating brands. Coca Cola continues to feature in discussions about companies with strong pricing power and global diversification. At the same time, commentary around changing consumer preferences, from sugar free beverages to ready to drink coffee and energy drinks, has kept the debate alive about how much growth runway the company still has.

• On our numbers, Coca Cola scores a 3/6 valuation score, meaning it screens as undervalued on half of our checks. This makes it a useful case study to compare classic valuation methods, and later on we will look at a more nuanced way to think about what this stock may be worth.

Coca-Cola delivered 15.3% returns over the last year. See how this stacks up to the rest of the Beverage industry.

A Discounted Cash Flow (DCF) model estimates what a business is worth today by projecting the cash it can generate in the future and then discounting those cash flows back into today’s dollars.

For Coca Cola, the latest twelve month free cash flow is about $5.6 billion. Analysts and our model expect this to rise steadily, with projections reaching roughly $11.9 billion in 2026 and continuing to climb to around $19.4 billion by 2035. Only the first few years are based on analyst forecasts, with the later years extrapolated using Simply Wall St growth assumptions.

When all those future cash flows are discounted back using a 2 Stage Free Cash Flow to Equity model, we arrive at an intrinsic value of about $89.90 per share. Compared with a market price near $70, the DCF suggests Coca Cola is trading at roughly a 21.6% discount, indicating potential upside if these cash flow projections occur as expected.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Coca-Cola is undervalued by 21.6%. Track this in your watchlist or portfolio, or discover 914 more undervalued stocks based on cash flows.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Coca-Cola.

For consistently profitable companies like Coca Cola, the price to earnings ratio is a practical way to gauge how much investors are paying for each dollar of current profits. It naturally blends expectations for future growth with perceptions of risk, since faster growing, lower risk companies usually command higher PE ratios, while slower or riskier businesses tend to trade on lower multiples.

Coca Cola currently trades on a PE of about 23.26x. That is above the Beverage industry average of roughly 17.50x, but below the broader peer group average of around 27.23x. This suggests investors see it as higher quality than the typical beverage stock but not as aggressively valued as some peers. Simply Wall St’s proprietary Fair Ratio for Coca Cola is 23.08x, which reflects what the multiple should be given its growth outlook, profitability, industry, market cap and risk profile. Because this Fair Ratio is tailored to the company’s fundamentals, it provides a more precise anchor than broad peer or industry comparisons alone.

With the actual PE only slightly above the Fair Ratio, Coca Cola’s valuation looks very close to fair value on this measure.

Result: ABOUT RIGHT

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1441 companies where insiders are betting big on explosive growth.

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, a simple way to connect your view of Coca Cola’s business with a set of numbers like future revenue, earnings, margins and a fair value estimate, then compare that to today’s share price.

A Narrative is your story behind the numbers, a concise explanation of how you think the company will grow, how profitable it can be, what risks matter most and therefore what you believe the stock is actually worth.

On Simply Wall St’s Community page, millions of investors use Narratives as an accessible tool that links a company’s story to a financial forecast and then to a fair value. This helps them quickly see whether their view suggests buy, hold or sell when set against the current price. Those Narratives are dynamically updated as new earnings, news or guidance is released.

For Coca Cola, for example, one investor Narrative might see fair value closer to $67 per share based on modest growth and a cautious view on regulation. Another might argue for a value around $78 per share by assuming stronger emerging market demand and higher long term margins. By comparing each of these fair values to the live market price, both investors get a clear, actionable signal that fits their own perspective.

For Coca-Cola, however, we will make it really easy for you with previews of two leading Coca-Cola Narratives:

🐂 Coca-Cola Bull Case

Fair value: $71.00 per share

Implied discount: -0.8%

Revenue growth assumption: 6.64%

• Sees Coca-Cola as a resilient, recession tested global brand with a decades-long dividend track record that appeals to conservative, income-focused investors.

• Expects steady growth driven by emerging markets and digital initiatives, while acknowledging risks from FX volatility, tariffs, regulation and sustainability controversies.

• Assumes stable mid 20s profit margins, ongoing buybacks and a premium P/E multiple, leading to a fair value close to today’s price and a broadly fairly valued stance.

🐻 Coca-Cola Bear Case

Fair value: $67.50 per share

Implied premium: 4.4%

Revenue growth assumption: 5.23%

• Frames Coca-Cola as a high-quality, cash-generative dividend aristocrat whose valuation is highly sensitive to small moves in discount rates.

• Models solid but moderating growth over 3, 5 and 10 year horizons, with strong free cash flow and sustained premium margins but gradually compressing valuation multiples.

• Concludes that, on a DCF view with a 6.25% discount rate, KO is trading modestly above intrinsic value, leaving only limited upside at current levels.

Do you think there’s more to the story for Coca-Cola? Head over to our Community to see what others are saying!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include KO.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Sow Good

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Sow Good

The project will involve fieldwork using biometric equipment and artificial intelligence to detect brain responses and emotional wellbeing associated with preparing food at home; eating ready meals; dining alone, with others, or while using mobile devices.

An innovative approach to studying everyday life

This newly launched research, expected to deliver results in the first quarter of 2026, will explore a previously unexamined area from a scientific perspective: the behaviours and emotions Spanish people experience around cooking, eating, and mealtime habits at home.

Two studies will be conducted: one led by SEN and URJC, analysing brain responses in different food preparation and consumption scenarios using biometric equipment and artificial intelligence; and another by CIBEROBN, exploring eating patterns and screen use during meals. For IKEA, understanding how people live in their homes is a priority, using both in-house research and collaborations with specialist partners to delve into less explored areas.

“This public-private collaboration project aims to provide scientific evidence on how the home environment and lifestyle habits influence our health. Understanding these dynamics can help us build awareness and improve our wellbeing,” says Dr Fernando Fernández-Aranda, researcher at CIBEROBN.

“For SEN, it is a pleasure to collaborate with CIBEROBN, URJC, and IKEA to explore the important implications of an act as human as cooking and enjoying food, allowing us to analyse the emotional and neuroscientific elements behind it,” adds Jesús Porta-Etessam, President of SEN.

Two complementary studies

The two new studies will run in parallel, aiming to provide a clear picture of people’s habits, behaviours, emotions, and feelings around cooking and dining.

SEN and URJC will conduct fieldwork using biometric equipment and artificial intelligence to detect brain responses and emotional wellbeing linked to cooking at home, eating ready meals, dining alone, with company, or while using mobile devices.

“From the Spanish Society of Neurology and the field of neuroscience, we know that cooking and sharing meals activate brain areas related to reward, empathy, and wellbeing. Analysing how these responses change in digital or solitary settings will help us better understand the impact of today’s lifestyle on brain health,” explains Dr Jesús Porta-Etessam.

“We are more connected than ever, yet increasingly isolated. This pioneering study combines artificial intelligence and biometric technology to explore how cooking and related habits can help us emotionally reconnect in a hyperconnected world,” says Ana Reyes, Professor of Marketing and Market Research at URJC.

In parallel, researchers from CIBEROBN will analyse eating patterns through interviews and surveys.

“We’ll not only examine what foods are consumed and how they are prepared, but also the conditions under which these activities take place—including time, environment, social or family rituals, and how screen use influences them,” says Dr Fernández-Aranda, who highlights “the importance of integrating environmental, social, and cultural factors into the study of eating habits.”

This approach could deepen our understanding of human behaviour and open new research avenues in brain and mental health and lifestyle patterns.

Public–private collaboration to open new scientific questions

The project highlights the importance of collaboration between public and private entities—businesses, scientific societies, universities, and research centres—to achieve outcomes that are meaningful for society.

From the Swedish company’s point of view: “This partnership allows us to apply scientific rigour to the study of everyday life in a field that has been largely unexplored—the intersection between food, social experience, and brain response.”

Results will be shared in the first quarter of 2026, offering what is expected to be an unprecedented snapshot of Spaniards’ habits and emotions around the table.

 

About Ingka Group 

With IKEA retail operations in 31 markets, Ingka Group is the largest IKEA retailer and represents 87% of IKEA retail sales. It is a strategic partner to develop and innovate the IKEA business and help define common IKEA strategies. Ingka Group owns and operates IKEA sales channels under franchise agreements with Inter IKEA Systems B.V. It has three business areas: IKEA Retail, Ingka Investments and Ingka Centres. Read more on Ingka.com.

Press Release:
09:29 CET • 05 Dec 2025

News release from Vestas Mediterranean
Madrid, 5 December 2025

Vestas has received a 10 MW order for a wind project from Cementeria Costantinopoli Srl, a leading manufacturer of construction materials, to deliver renewable energy directly to their cement factory in the Basilicata region in Italy.

The wind farm will be located next to the factory and enable Cementeria Costantinopoli to supply energy on-site, covering approximately one-third of its electricity needs with secure, affordable and sustainable power.

The contract includes the supply and installation of three V117-3.45 MW turbines and it includes a 10-year Active Output Management 4000 (AOM 4000) service agreement.

“This project marks a milestone for Vestas in Italy as it is the first of its kind in the country to exclusively power an energy-intensive cement factory with clean wind energy, setting a precedent for industrial decarbonisation in the region. We are proud to deliver the technology solution that will reduce the plant’s environmental footprint and reliance on external power”, says Francesco Amati, General Manager, Vestas Italy.

“For Cementeria, the activation of the first wind farm for self-consumption in Italy, realised with Vestas technology, is not only an energy milestone, but also a tangible demonstration of our deep commitment to environmental sustainability. This strategic investment strengthens our leadership in the decarbonisation of the sector and underscores our commitment to building a productive future with reduced impact,” adds Rabasco Roberto, Chief Sustainability Officer of Cementeria Costantinopoli Srl.

Turbine delivery and commissioning are expected in fourth quarter of 2026. The order also reinforces Vestas’ leadership in the country’s wind energy sector, where it has installed over 6 GW since 1991.

For more information, please contact:
Fernando Iwan Glazer
Senior Director Strategy, Marketing & Communication
Vestas Mediterranean
M +34 682 00 34 12
Email: feigl@vestas.com

About Vestas
Vestas is the energy industry’s global partner on sustainable energy solutions. We design, manufacture, install, and service onshore and offshore wind turbines across the globe, and with more than 197 GW of wind turbines in 88 countries, we have installed more wind power than anyone else. Through our industry-leading smart data capabilities and unparalleled more than 159 GW of wind turbines under service, we use data to interpret, forecast, and exploit wind resources and deliver best-in-class wind power solutions. Together with our customers, Vestas’ more than 37,000 employees are bringing the world sustainable energy solutions to power a bright future.

For updated Vestas photographs and videos, please visit our media images page on: https://www.vestas.com/en/media/images

We invite you to learn more about Vestas by visiting our website at www.vestas.com and following us on our social media channels:

Warner Bros Discovery has entered exclusive talks to sell its streaming and Hollywood studio business to Netflix, a move that would dramatically change the established film and TV landscape.

Netflix is in competition with Paramount Skydance and Comcast, which owns assets including Universal Studios and Sky, to buy the owner of the Hollywood studio Warner Bros, HBO and the HBO Max streaming service.

Netflix is offering a $5bn (£3.7bn) breakup fee if the deal fails to gain regulatory approval in the US, according to Bloomberg, which first reported the exclusive talks.

Warner Brothers Discover shares are currently about $24, giving it a market value of about $60bn. Netflix has reportedly offered between $28 and $30 a share, suggesting its bid could be worth between $70bn and $75bn.

Analysts have warned that the deal could spark competition concerns as it would result in the combination of two of the biggest streaming services in the US.

Netflix has given assurances that it will continue to allow the Warner Bros film studio, home to franchises such as Harry Potter and Batman, to continue to have wide cinematic releases.

Prior to the closing of any deal, Warner Bros Discovery will complete a planned spin-off of its cable channels, which include CNN, TBS and TNT.

A deal would result in Netflix becoming the owner of HBO, the maker of hit shows including Succession, The White Lotus, The Sopranos and Game of Thrones, as well as an extensive TV archive that includes classics such as Friends, which is soon to be unavailable on Netflix.

Warner Bros formally put itself up for sale in October after receiving interest from several parties.

Earlier this week, James Cameron, the director of Titanic and the Terminator and Avatar series, warned that a sale to Netflix would cause a “catastrophic loss of long-term value” for the entertainment industry.

Paramount, run by David Ellison and bankrolled by his billionaire father and Oracle founder, Larry, had been seen as the early frontrunner.

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Paramount, which owns assets including Channel 5 in the UK, had also offered a $5bn termination fee if a deal is agreed but fails to get regulatory clearance.

Earlier this week, Paramount argued in a letter to Warner Bros that its bid was most likely to gain regulatory clearance.

Paramount accused Warner Bros of operating an unfair auction process that favoured Netflix. In the letter from litigation counsel the company called the process “tainted”.

Warner Bros, Netflix, Comcast and Paramount declined to comment.

Leonardo and the Italian National Armaments Directorate have signed a multi-year contract to provide Logistics Support for the Italian Air Force’s fleet of C-27J “Spartan” tactical transport aircraft and for the Full Motion Simulator of the International Training Centre (ITC) at the Air Base in Pisa, headquarters of the 46th Air Brigade.

The contract will run from 2026 to 2028 under a Performance-Based model, ensuring high levels of efficiency for the Italian Air Force’s fleet of 12 aircraft operating out of the Pisa and Pratica di Mare (Rome) bases. During the same period, Leonardo will provide technical and administrative management services for operations at the Air Force’s International Training Center in Pisa and, above all, technical and maintenance support services for the ITC’ flight simulator in Pisa.

Leonardo’s C-27J “Spartan” is the most effective and versatile multi-mission tactical transport aircraft in its class available on the market today. Equipped with two powerful turboprop engines, it offers outstanding performance with extraordinary operational flexibility and economical use. Its ability to operate from unprepared runways and under extreme environmental conditions is unmatched by any other transport aircraft in its category. These exceptional features are taken even further in the enhanced C-27J Spartan Next Generation version, introducing new equipment and aerodynamic solutions.

Thanks to its exceptional structural robustness and the redundancy of its systems, the “Spartan” offers unique reliability, resilience and manoeuvrability, demonstrated during more than 275,000 hours in flight. Ordered and deployed by some of the world’s most important air forces, the C-27J has been extensively tested under the most challenging operational circumstances and continues to prove that it can effectively carry out a wide range of missions every day. Typical tasks of the C-27J include not only transport and airlift operations supporting troops close to the front line (“last tactical mile”), but disaster relief and firefighting missions.

The cabin of the C-27J can be quickly converted into 11 main configurations, each designed to carry out a specific type of mission. The five basic configurations (Cargo Transport, Troop Transport, Medical Evacuation, Cargo Raid, Parachute Raid) are produced using standard kits, and can each be set up in less than 30 minutes. The six optional configurations, requiring additional modules or equipment available to customers on request, are: VIP Transportation, Passenger Transportation, Special Medevac, Biocontainment, Basic and Advanced Firefighting.

Like many of Porsche’s technical inventions, PTM’s roots can be traced back to Ferdinand Porsche. The ingenious engineer laid the foundation for the brand’s sporty all-wheel drive as early as 1900, using the means available at the time. The idea, now in series production at Porsche for almost 40 years, has been continuously developed.

Today, a particularly powerful drive system called Porsche Traction Management (PTM) is installed in many of the sports car manufacturer’s all-wheel-drive models. This active system ensures rapid distribution of drive torque between the rear and front axles, enhancing driving dynamics, safety, traction and therefore delivering even greater driving pleasure. In other words, everything that constitutes the core philosophy of the brand.

PTM makes optimal use of the physical conditions to improve driving dynamics. Depending on the driving situation, axle loads change. This dynamic load transfer causes the tyres to transmit different forces depending on the axle and position during driving. For example, when driving straight uphill, the rear wheels are more heavily loaded and can transmit higher forces. In this case, PTM reduces the torque transferred to the front axle.

How does the ePTM work?

During the development of the Macan Electric, the engineers completely reimagined the system and created the electronically controlled Porsche Traction Management (ePTM). Through power electronics, the two electric motors of the all-wheel-drive Macan models are controlled individually and almost in real time. The ePTM reacts around five times faster than a conventional hang-on part-time all-wheel-drive system and can respond to slip within 10 milliseconds. Additionally, the all-wheel distribution depends on the selected driving mode.

In Normal mode, the drive distribution is optimised for high efficiency and range, meaning rear-wheel drive is used as often as possible. In Sport and Sport Plus modes, the focus of the ePTM is on optimal traction, with the front axle drive engaged more frequently. In Offroad mode, the Macan switches to all-wheel drive with off-road specifications. In this case, a virtual longitudinal lock limits the differential speed between the front and rear axles, improving traction. The ride height is also adjusted, increasing by 20 millimetres or 40 mm in special terrain mode.

In the Macan Turbo, Porsche Torque Vectoring Plus (PTV Plus), an electronically controlled rear-axle differential lock, contributes to traction, driving stability, and lateral dynamics. Macan models with air suspension are generally equipped with Porsche Active Suspension Management (PASM), an electronic damper control system. This system can also be combined with steel suspension.

New to PASM are dampers with two-valve technology. Thanks to the expanded damper characteristic map, there is a wider spectrum of adjustments between comfort and performance settings. This is especially noticeable when driving over rough asphalt as well as on winding mountain roads. The latter can be taken with precision and excellent tracking even at high speeds. On rough terrain, shocks and jolts are filtered so that passengers in the electric Macan hardly feel them. And that’s the appeal: the interplay of suspension systems ensures safety, comfort and driving pleasure. It’s the power of all four wheels – reinterpreted.

Info

Text first published in the Porsche Fahrer Special Edition: Porsche E-Performance.

Text: Wolfgang Schäffer
Images: Porsche AG

Copyright: All images, videos and audio files published in this article are subject to copyright. Reproduction in whole or in part is not permitted without the written consent of Dr. Ing. h.c. F. Porsche AG. Please contact newsroom@porsche.com for further information.