Is The Coca-Cola Co. overvalued or undervalued?

As of 9 August 2024, The Coca-Cola Co. has moved from an expensive to a very expensive valuation grade. The company is currently overvalued based on its financial metrics. Key ratios include a P/E ratio of 45, a Price to Book Value of 19.13, and an EV to EBITDA of 42.55, all of which significantly exceed industry averages.
In comparison to peers, PepsiCo, Inc. has a P/E ratio of 22.78 and an EV to EBITDA of 15.53, while Coca-Cola Europacific Partners plc is valued fairly with a P/E of 32.21. These comparisons highlight that Coca-Cola's valuation is not justified relative to its peers. Additionally, while Coca-Cola has shown a year-to-date return of 12.01%, it has underperformed the S&P 500's 2.44% during the same period, reinforcing the notion that the stock is overvalued.