KO - Embedded Expectations Analysis - 2018 12 12
The Coca-Cola Company (KO:USA) is currently trading above corporate averages relative to UAFRS-based (Uniform) Earnings, with a 23.5x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about their recent acquisitions and investments, scaling new brands, and the challenging currency environmentSpecifically, management is confident that they will see some volatility in the recovery of their emerging markets segment. They may also lack confidence in their ability to adjust their price/pack architecture in Argentina to maintain price points and affordability, and may have concerns about their recent acquisitions and investments, specifically their investments in global Venturing & Emerging Brands. Moreover, they may lack confidence in their ability to scale their newly acquired brands, and may be exaggerating the recovery of some of their struggling markets. Additionally, they may be exaggerating the success they have seen from their price increase strategy in the U.S. over recent years, and might have concerns about continued currency headwinds going forward
Coca-Cola is a nonalcoholic beverage company. The company owns or licenses and markets nonalcoholic beverage brands, which it groups into the following category clusters: sparkling soft drinks; water, enhanced water and sports drinks; juice, dairy and plant-based beverages; tea and coffee; and energy drinks. The company's nonalcoholic sparkling soft drink brands are Coca-Cola, Diet Coke, Fanta and Sprite. The company markets, manufactures and sells beverage concentrates and syrups, including fountain syrups; and finished sparkling soft drinks and other nonalcoholic beverages. The company's segments are Europe, Middle East and Africa; Latin America; North America; Asia Pacific; Global Ventures; and Bottling Investments.
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