KO
KO
Hold 2026-04-14
Model
DDM
Price at Report
$75.90
Base IV
$70.27
Bear IV
$53.70
Bull IV
$91.09
Entry Zone: 51-65 · Sell Above: 81
Bore Family Office
Valuation Report — Coca-Cola Co (KO) • April 14, 2026
3-Stage DDM (Ke) • Discount Rate: 6.30% • Current Price: $75.90
Prepared by Lurch • Bore Family Office • Data: Finnhub, StockAnalysis.com, S&P Global Market Intelligence
📊 Business Lifecycle Stage
Stage 1
Startup
Startup
Stage 2
Hyper Growth
Hyper Growth
Stage 3
Self Funding
Self Funding
Stage 4
Operating Leverage
Operating Leverage
Stage 5
Capital Return
Capital Return
Stage 6
Decline
Decline
Stage 5 — Maturity/Stability: Mature business returning capital via dividends and buybacks. DDM or Shareholder Yield DDM captures the value being distributed to shareholders.
Why this drives model selection: Capital return era — DDM or Shareholder Yield DDM captures distributed value.
📈 DDM Scenarios
$54
🔴 Bear
$70
📊 Base
$91
🚀 Bull
$75.90
Current Price
| Scenario | Stage 1 (Yrs 1–5) | Stage 2 (Yrs 6–10) | Terminal g | Ke | Intrinsic Value | vs Price |
|---|---|---|---|---|---|---|
| 🔴 Bear | 3.7% | 1.9% | 2.0% | 6.30% | $54 | ▼29.2% |
| 📊 Base | 6.2% | 3.7% | 2.5% | 6.30% | $70 | ▼7.4% |
| 🚀 Bull | 8.7% | 4.8% | 3.0% | 6.30% | $91 | ▲20.0% |
📋 Full 10-Year Projection Tables
Bear Scenario
Stage 1: 3.7% | Stage 2: 1.9% | Terminal: 2.0%
| Period | Stage | DPS / Dist. | PV of DPS | Cumulative IV |
|---|---|---|---|---|
| Year 1 | Stage 1 | $2.184 | $2.055 | $2.05 |
| Year 2 | Stage 1 | $2.265 | $2.005 | $4.06 |
| Year 3 | Stage 1 | $2.350 | $1.956 | $6.02 |
| Year 4 | Stage 1 | $2.437 | $1.909 | $7.92 |
| Year 5 | Stage 1 | $2.528 | $1.863 | $9.79 |
| Year 6 | Stage 2 | $2.575 | $1.785 | $11.57 |
| Year 7 | Stage 2 | $2.623 | $1.710 | $13.28 |
| Year 8 | Stage 2 | $2.671 | $1.639 | $14.92 |
| Year 9 | Stage 2 | $2.721 | $1.570 | $16.49 |
| Year 10 | Stage 2 | $2.772 | $1.505 | $18.00 |
| Terminal | — | TV=$65.77 | PV(TV)=$35.71 (66% of IV) | $53.70 |
| Intrinsic Value | — | — | PV(Divs) $18.00 + PV(TV) $35.71 | $53.70 |
How the price per share is derived: Each year's projected dividend is discounted back at Ke (6.30%) to get its present value. After Year 10, dividends are assumed to grow at the terminal rate (2.0%) in perpetuity — the Gordon Growth formula gives a terminal value of DPS11 / (Ke − gT) = $65.77. That terminal value is then discounted back 10 years to today's dollars (PV of TV = $35.71). Intrinsic value = PV of all dividends ($18.00) + PV of terminal value ($35.71) = $53.70 per share.
Base Scenario
Stage 1: 6.2% | Stage 2: 3.7% | Terminal: 2.5%
| Period | Stage | DPS / Dist. | PV of DPS | Cumulative IV |
|---|---|---|---|---|
| Year 1 | Stage 1 | $2.236 | $2.104 | $2.10 |
| Year 2 | Stage 1 | $2.375 | $2.102 | $4.21 |
| Year 3 | Stage 1 | $2.522 | $2.100 | $6.31 |
| Year 4 | Stage 1 | $2.679 | $2.098 | $8.40 |
| Year 5 | Stage 1 | $2.845 | $2.096 | $10.50 |
| Year 6 | Stage 2 | $2.951 | $2.045 | $12.55 |
| Year 7 | Stage 2 | $3.060 | $1.996 | $14.54 |
| Year 8 | Stage 2 | $3.174 | $1.947 | $16.49 |
| Year 9 | Stage 2 | $3.292 | $1.900 | $18.39 |
| Year 10 | Stage 2 | $3.415 | $1.854 | $20.24 |
| Terminal | — | TV=$92.15 | PV(TV)=$50.03 (71% of IV) | $70.27 |
| Intrinsic Value | — | — | PV(Divs) $20.24 + PV(TV) $50.03 | $70.27 |
How the price per share is derived: Each year's projected dividend is discounted back at Ke (6.30%) to get its present value. After Year 10, dividends are assumed to grow at the terminal rate (2.5%) in perpetuity — the Gordon Growth formula gives a terminal value of DPS11 / (Ke − gT) = $92.15. That terminal value is then discounted back 10 years to today's dollars (PV of TV = $50.03). Intrinsic value = PV of all dividends ($20.24) + PV of terminal value ($50.03) = $70.27 per share.
Bull Scenario
Stage 1: 8.7% | Stage 2: 4.8% | Terminal: 3.0%
| Period | Stage | DPS / Dist. | PV of DPS | Cumulative IV |
|---|---|---|---|---|
| Year 1 | Stage 1 | $2.289 | $2.153 | $2.15 |
| Year 2 | Stage 1 | $2.487 | $2.201 | $4.35 |
| Year 3 | Stage 1 | $2.703 | $2.251 | $6.60 |
| Year 4 | Stage 1 | $2.938 | $2.301 | $8.91 |
| Year 5 | Stage 1 | $3.193 | $2.353 | $11.26 |
| Year 6 | Stage 2 | $3.347 | $2.320 | $13.58 |
| Year 7 | Stage 2 | $3.509 | $2.288 | $15.87 |
| Year 8 | Stage 2 | $3.679 | $2.257 | $18.12 |
| Year 9 | Stage 2 | $3.857 | $2.226 | $20.35 |
| Year 10 | Stage 2 | $4.043 | $2.195 | $22.54 |
| Terminal | — | TV=$126.26 | PV(TV)=$68.55 (75% of IV) | $91.09 |
| Intrinsic Value | — | — | PV(Divs) $22.54 + PV(TV) $68.55 | $91.09 |
How the price per share is derived: Each year's projected dividend is discounted back at Ke (6.30%) to get its present value. After Year 10, dividends are assumed to grow at the terminal rate (3.0%) in perpetuity — the Gordon Growth formula gives a terminal value of DPS11 / (Ke − gT) = $126.26. That terminal value is then discounted back 10 years to today's dollars (PV of TV = $68.55). Intrinsic value = PV of all dividends ($22.54) + PV of terminal value ($68.55) = $91.09 per share.
🔲 Sensitivity Table
| Ke \ gT | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% |
|---|---|---|---|---|---|
| 4.3% | $104 | $122 | $150 | $200 | $312 |
| 4.8% | $88 | $100 | $117 | $144 | $192 |
| 5.3% | $76 | $84 | $96 | $113 | $138 |
| 5.8% | $67 | $73 | $81 | $92 | $108 |
| 6.3% | $59 | $64 | $70 | $78 | $89 |
| 6.8% | $54 | $57 | $62 | $68 | $75 |
| 7.3% | $49 | $52 | $55 | $60 | $65 |
| 7.8% | $45 | $47 | $50 | $53 | $58 |
| 8.3% | $41 | $43 | $46 | $48 | $52 |
Green = >10% above current price. Red = >10% below. Gold = within ±10%.
📉 Long-Term Price Trend Channel
Log-linear trend fitted to full price history. ±1.5σ bands. Green shaded zone = bottom 25% of historical range — historically attractive entry.
👔 Management Quality & Culture
CEO: Succession Planning · Tenure: Since 1996 (~30 yrs)
Net Insider Buys (12m)
+581,531 shares
Incentive Alignment
⚠️ Moderate
Compensation: Equity-based compensation present
CEO Background & Track Record
The Coca-Cola Company - Wikipedia
J. Paul Austin, the chairman and CEO of Coca-Cola, and Mayor Ivan Allen summoned key Atlanta business leaders to the Commerce Club's eighteenth-floor dining room, where Austin told them flatly, 'It is embarrassing for Coca-Cola to
J. Paul Austin, the chairman and CEO of Coca-Cola, and Mayor Ivan Allen summoned key Atlanta business leaders to the Commerce Club's eighteenth-floor dining room, where Austin told them flatly, 'It is embarrassing for Coca-Cola to
James Quincey - Wikipedia
James Robert B. Quincey (born 8 January 1965) is a British businessman based in the United States. After starting his career at Bain & Co, he joined The Coca-Cola Company in 1996 and was later named chief operating officer (COO).
James Robert B. Quincey (born 8 January 1965) is a British businessman based in the United States. After starting his career at Bain & Co, he joined The Coca-Cola Company in 1996 and was later named chief operating officer (COO).
Roberto Goizueta - Wikipedia
Roberto Críspulo Goizueta Cantera (November 18, 1931 – October 18, 1997) was a Cuban-born American business executive who served as the chairman, president, and chief executive officer (CEO) of The Coca-Cola Company from August 1980
Roberto Críspulo Goizueta Cantera (November 18, 1931 – October 18, 1997) was a Cuban-born American business executive who served as the chairman, president, and chief executive officer (CEO) of The Coca-Cola Company from August 1980
Capital Allocation & Strategy
What is Growth Strategy and Future Prospects of Coca-Cola Co
The company extended its multi‑decade dividend increase streak through 2024 and into 2025, backed by an investment‑grade balance sheet and disciplined capital allocation. Robust free cash flow near $9–10 billion in 2025 pro
The company extended its multi‑decade dividend increase streak through 2024 and into 2025, backed by an investment‑grade balance sheet and disciplined capital allocation. Robust free cash flow near $9–10 billion in 2025 pro
Financial Ambition - Coca-Cola Investor Relations
(a) Return on Invested Capital (ROIC) = Comparable Net Operating Profit After Tax (NOPAT) divided by two-year average of invested capital; Non-GAAP; (b) as of 12/31/2024 · In addition to our commitment to reinvest back into our business and
(a) Return on Invested Capital (ROIC) = Comparable Net Operating Profit After Tax (NOPAT) divided by two-year average of invested capital; Non-GAAP; (b) as of 12/31/2024 · In addition to our commitment to reinvest back into our business and
Employee Ratings
Overall Rating
3.8/5 ★★★★☆
Reviews
6,383
Culture Signal
Positive
✅ Strengths
- good benefits
- work-life balance
- recommend
Employee Review Excerpts
The Coca-Cola Company Reviews (7,380): Pros & Cons of Workin
How satisfied are employees working at The Coca-Cola Company?83% of The Coca-Cola Company employees would recommend working there to a friend based on Glassdoor reviews. Employees also rated The Coca-Cola Company 3.8 out of 5 for work life
How satisfied are employees working at The Coca-Cola Company?83% of The Coca-Cola Company employees would recommend working there to a friend based on Glassdoor reviews. Employees also rated The Coca-Cola Company 3.8 out of 5 for work life
Working at The Coca-Cola Company: 6,383 Reviews | Indeed.com
6,383 reviews from The Coca-Cola Company employees about The Coca-Cola Company culture, salaries, benefits, work-life balance, management, job security, and more.
6,383 reviews from The Coca-Cola Company employees about The Coca-Cola Company culture, salaries, benefits, work-life balance, management, job security, and more.
The Coca-Cola Company "leadership" Reviews | Glassdoor
Jun 3, 2025 · Anonymous employee · Current employee · Recommend · CEO approval · Business Outlook · Pros · Good benefits, good leadership and good culture · Cons · No specific cons in this company · Show more · Helpful · Sh
Jun 3, 2025 · Anonymous employee · Current employee · Recommend · CEO approval · Business Outlook · Pros · Good benefits, good leadership and good culture · Cons · No specific cons in this company · Show more · Helpful · Sh
Sources: Finnhub insider data · Brave Search (Glassdoor, Indeed, Comparably, news) · Earnings surprise data from analyst forecasts · Qualitative signals are directional only.
⚖️ DDM Verdict: Hold — Coca-Cola Co (KO)
Current price: $75.90
$54
🔴 Bear
$70
📊 Base
$91
🚀 Bull
| Tier | Price | Action |
|---|---|---|
| Tier 1 — Starter | ≤$65 | Begin position |
| Tier 2 — Add | ≤$62 | Add on weakness |
| Tier 3 — Full | ≤$51 | Full allocation |
| Sell Alert | ≥$81 | Above fair value — consider trimming |
How tiers are set: Tier 1 = Base IV × 0.92 (8% discount to base case). Tier 2 = midpoint of Bear & Base IV (building on meaningful weakness). Tier 3 = Bear IV × 1.05 (just above worst-case — maximum margin of safety). Sell alert = Bull IV × 0.85 (15% discount to bull case — above fair value range).
Verdict: Hold. At $75.90, the shares sit in a reasonable range relative to the base-case value of $70. Add only on weakness toward the entry tiers below.
Bore Family Office • Analysis generated by Lurch • Not investment advice.
Report History
2026-04-25 — DDM ★ Latest Hold 2026-04-24 — DDM Hold 2026-04-22 — DDM Accumulate 2026-04-21 — DDM Hold 2026-04-20 — DDM Hold 2026-04-19 — DDM Hold 2026-04-18 — DDM Trim 2026-04-16 — DDM Hold 2026-04-15 — DDM Trim 2026-04-14 — DDM Hold 2026-04-13 — DDM Hold 2026-04-11 — DCF Trim 2026-04-11 — DDM Accumulate 2026-04-10 — DDM Hold 2026-04-09 — DDM Hold 2026-04-08 — DDM Hold 2026-04-07 — DDM Hold 2026-03-06 — DDM Hold