COCA COLA

VALUATION
By Ashish Sabharwal –
Ashesh Mathur –
Praful Jain -
Sahaj Sharma - 80303190118
METHODS OF VALUATION
• DCF
• DDM
• Relative Valuation
Prior Assumptions and Calculations

C:\Users\amit sharma\Desktop\Coca Cola Case Sol.xlsx

VALUATION USING FCFF – Two Factor Model
Inputs
• FCFF -
• WACC – 6.47%
• Terminal Growth Rate – 5.07%
Outputs

• Enterprise Value - 530498.7899

• Equity Value - 525660.7899
• Value Per Share - 225.7023572 - undervalued (56.54)
VALUATION USING FCFF – Constant Growth Model
Inputs
• FCFF -
• WACC – 6.47%
• Terminal Growth Rate – 5.07%
Outputs

• Enterprise Value - 466024.9726

• Equity Value - 461186.9726
• Value Per Share - 198.0193099 - undervalued (56.54)
VALUATION USING FCFF – Zero Growth Model
Inputs
• FCFF -
• WACC – 6.47%
• Terminal Growth Rate – 0
Outputs

• Enterprise Value - 95773.85814

• Equity Value - 90935.85814
• Value Per Share - 39.04502282 - undervalued (56.54)
VALUATION USING DDM - DCF
Inputs
• WACC – 6.61%
• Terminal Growth Rate – 5.07%
Outputs
Using Dividend Discount Model,
And assuming the above values

• Terminal Value is undervalued (56.54)

VALUATION USING DDM – Two Stage Growth Model
Inputs
• WACC – 6.61%
• Terminal Growth Rate – 5.07%
Outputs
Using Dividend Discount Model,
And assuming the above values
• Terminal Value – 164.02 is undervalued (56.54)
VALUATION USING DDM – Zero Growth Model

Inputs
• WACC – 6.61%
• Terminal Growth Rate – 0
Outputs
Using Dividend Discount Model,
And assuming the above values
• Terminal Value – 24.816 is overvalued (56.54)
VALUATION USING RELATIVE VALUATION
SENSITIVITY ANALYSIS OF FCFF
THANK YOU
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