The Coca-Cola Company (KO) — Quantitative Forecast & Factor Scores

KO currently carries a valuation grade of Hold. The trailing P/E of 25.0 is roughly in line with the Consumer Defensive sector median of 24.0x. Our discounted cash flow model suggests an intrinsic range of $70–$93, implying a +7% margin of safety at the current price of $75.97.

With a beta of 0.33, KO exhibits a low-volatility risk profile relative to the broad market. Net margins of 27.3% are significantly above the Consumer Defensive average of 12%, reflecting strong pricing power. Return on equity of 43.3% indicates highly efficient capital allocation. Leverage is moderate with debt-to-equity at 140%.

The company has beaten estimates in 67% of recent quarters, a moderate hit rate. The most recent quarter delivered a +14.6% earnings surprise. Analyst estimate revisions are trending accelerating.

Insiders have been net sellers to the tune of $118,826,485 recently. While routine dispositions are common, the magnitude bears watching. Short interest is low at 1.0% of float, suggesting limited bearish conviction.

The options market shows a put/call ratio of 1.26, reflecting a notably bearish skew in derivative positioning. Implied volatility of 29.3% exceeds realized volatility of 15.2% by 14 points, suggesting options are pricing in elevated risk.

As a Consumer Defensive constituent, KO's risk profile should be evaluated alongside sector peers when constructing diversified portfolios.