Is The Coca-Cola Co. overvalued or undervalued?

As of 22 July 2025, the valuation grade for The Coca-Cola Co. has moved from expensive to fair. Based on the current metrics, the company appears fairly valued. 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. In comparison, PepsiCo, Inc. has a P/E of 25.36, indicating it is very expensive, while Monster Beverage Corp. also shows a high P/E of 41.05, suggesting that Coca-Cola is relatively better positioned among its peers.
Despite the fair valuation, Coca-Cola's recent stock performance has lagged behind the S&P 500, with a 1-year return of -7.37% compared to the index's 17.14%. However, over the 5-year period, Coca-Cola has returned 31.73%, which is significantly lower than the S&P 500's 96.61%, indicating potential concerns about its growth relative to the broader market.