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  • Chirag Coke

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    Chirag Laxman
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    Coca-Cola has a large global market share with products sold in over 200 countries and 1.9 billion daily servings. In 2018, the company had $44 billion in net operating revenues and $7.4 billion in net income, with a market capitalization of $176 billion. Over the past 18 years, Coca-Cola has grown earnings per share at a compound annual growth rate of 6.9% through improving business metrics, and has provided strong returns for shareholders exceeding the S&P 500 index.

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    Coca-Cola has a large global market share with products sold in over 200 countries and 1.9 billion daily servings. In 2018, the company had $44 billion in net operating revenues and $7.4 billion in net income, with a market capitalization of $176 billion. Over the past 18 years, Coca-Cola has grown earnings per share at a compound annual growth rate of 6.9% through improving business metrics, and has provided strong returns for shareholders exceeding the S&P 500 index.

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    © All Rights Reserved
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    16 views2 pages

    Chirag Coke

    Uploaded by

    Chirag Laxman
    Coca-Cola has a large global market share with products sold in over 200 countries and 1.9 billion daily servings. In 2018, the company had $44 billion in net operating revenues and $7.4 billion in net income, with a market capitalization of $176 billion. Over the past 18 years, Coca-Cola has grown earnings per share at a compound annual growth rate of 6.9% through improving business metrics, and has provided strong returns for shareholders exceeding the S&P 500 index.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    Market share

    • Products sold in more than 200 countries

    • More than 1.9 billion daily servings of Coca-Cola products

    • $44 billion of net operating revenues

    • $7.4 billion of net income

    • $176 billion market capitalization (as of January 12, 2018)

    • Coke has 20 brands with over 1 billion USD Per Year in Sales.

    Stock Analysis

    • Fundamentally, Coca-Cola has done a fantastic job at improving metrics that are commonly
    associated with business success.

    • Between 2000-2018 the company has grown earnings-per-share from $0.74 to $2.00, which is
    equivalent to a CAGR of 6.9%.

    • Looking back even further, Coca-Cola’s EPS in 1985 was $5.51. However, due to a series of stock
    splits, each shareholder of Coca-Cola stock in 1985 would effectively own 48 shares today. This
    means that 1985’s EPS measured in today’s number of shares would be $0.11 (which is $5.51
    divided by 48). Doing the math, Coca-Cola has compounded EPS at a CAGR of 10.2%, a very high
    rate of earnings growth.

    • This growth in the underlying business has translated to phenomenal returns for Coca-Cola’s
    shareholders. Historically, the company has been a tremendous investment, delivering returns
    well in excess of the S&P 500 Index.

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