Is The Coca-Cola Company (KO) Undervalued?
Based on the current stock price of $69.87 and a P/E ratio of 23.14,The Coca-Cola Company has a PEG ratio of 6.15.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 6.15, KO appears to be potentially overvalued relative to its growth rate of 3.76%.
Based on a PEG ratio of 3.46 (adjusted for dividends).
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How we analyzed KO
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 23.14and dividing it by the annual growth rate of 3.76%.
PEG = 23.14 (P/E) ÷ 3.76 (Growth) = 6.15
Frequently Asked Questions about KO
What is the current PEG Ratio for The Coca-Cola Company (KO)?+
The current PEG Ratio for The Coca-Cola Company is 6.15. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is KO stock undervalued right now?+
Based on the PEG ratio of 6.15, The Coca-Cola Company appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for KO?+
The PEGY ratio for The Coca-Cola Company is 3.46. This metric accounts for dividend yield (2.92%), providing a more complete valuation picture.