Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Coca-Cola Co., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Net Cash Provided by Operating Activities
- The net cash provided by operating activities demonstrated a fluctuating trend over the five-year period. Starting at $9,844 million in 2020, there was a significant increase reaching its peak at $12,625 million in 2021. However, this was followed by a decline to $11,018 million in 2022. A modest recovery occurred in 2023 with an increase to $11,599 million. In 2024, the value fell sharply to $6,805 million, representing the lowest point within the period under review.
- Free Cash Flow to Equity (FCFE)
- Free cash flow to equity also exhibited notable variability throughout the timeframe. Beginning at $6,994 million in 2020, it rose substantially to $11,594 million in 2021. This was followed by a decline to $8,651 million in 2022. The figure then rebounded to a peak of $11,678 million in 2023, surpassing the previous high. Similar to operating cash flow, FCFE declined significantly in 2024, falling to $7,309 million, the lowest value recorded in the period analyzed.
- Overall Observations
- Both key cash flow metrics showed a pattern of sharp increases in 2021, subsequent declines in 2022, partial recoveries in 2023, and marked decreases in 2024. The pronounced drop in 2024 suggests potential challenges affecting cash generation from operations and the available free cash flow to equity holders. This downward shift may impact the company’s financial flexibility and shareholder returns if the trend continues.
Price to FCFE Ratio, Current
Coca-Cola Co., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 4,304,266,738 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 7,309) |
| FCFE per share | 1.70 |
| Current share price (P) | 71.35 |
| Valuation Ratio | |
| P/FCFE | 42.02 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Mondelēz International Inc. | 38.89 |
| PepsiCo Inc. | 22.56 |
| Philip Morris International Inc. | 30.43 |
| P/FCFE, Sector | |
| Food, Beverage & Tobacco | 31.89 |
| P/FCFE, Industry | |
| Consumer Staples | 37.25 |
Based on: 10-K (reporting date: 2024-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Coca-Cola Co., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 4,301,000,395 | 4,312,456,168 | 4,326,691,783 | 4,335,473,308 | 4,309,311,676 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | 7,309) | 11,678) | 8,651) | 11,594) | 6,994) | |
| FCFE per share3 | 1.70 | 2.71 | 2.00 | 2.67 | 1.62 | |
| Share price1, 4 | 70.04 | 60.70 | 59.80 | 62.28 | 50.17 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 41.22 | 22.42 | 29.91 | 23.29 | 30.91 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Mondelēz International Inc. | 32.34 | — | 14.10 | 30.57 | 20.76 | |
| PepsiCo Inc. | 23.92 | 17.88 | 47.17 | 77.00 | 10.51 | |
| Philip Morris International Inc. | 24.69 | 11.93 | 6.64 | 20.46 | 15.06 | |
| P/FCFE, Sector | ||||||
| Food, Beverage & Tobacco | 29.59 | 20.54 | 16.95 | 29.54 | 16.45 | |
| P/FCFE, Industry | ||||||
| Consumer Staples | 32.13 | 24.26 | 25.33 | 24.84 | 18.28 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 7,309,000,000 ÷ 4,301,000,395 = 1.70
4 Closing price as at the filing date of Coca-Cola Co. Annual Report.
5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 70.04 ÷ 1.70 = 41.22
6 Click competitor name to see calculations.
- Share Price Trend
- The share price demonstrated an overall upward trajectory from 2020 through 2024. Starting at $50.17 in 2020, it increased to a peak of $62.28 in 2021, experienced a mild decline in 2022 to $59.80, followed by a moderate rise to $60.70 in 2023, and then a more substantial increase to $70.04 in 2024. This reflects a generally positive market valuation over the five-year period.
- Free Cash Flow to Equity (FCFE) per Share
- FCFE per share exhibited considerable fluctuations across the years. It rose sharply from $1.62 in 2020 to $2.67 in 2021, then declined to $2.00 in 2022. Subsequently, it increased again to $2.71 in 2023 but decreased to $1.70 by 2024. These variations suggest some instability or volatility in the company's free cash flow generation available to equity shareholders during this timeframe.
- Price to FCFE (P/FCFE) Ratio
- The P/FCFE ratio moved inversely relative to FCFE per share and share price changes. It decreased from 30.91 in 2020 to 23.29 in 2021, indicating a market appreciation relative to cash flow improvement. In 2022, it rose to 29.91, which aligns with the decrease in FCFE per share and a declining share price. It dropped again to 22.42 in 2023 as FCFE improved and the share price saw minor increases. In 2024, the ratio sharply increased to 41.22, driven by a significant rise in the share price coupled with a decline in FCFE per share, signaling higher market valuation relative to cash flows and possibly heightened investor optimism or overvaluation.
- Summary of Financial Performance Trends
- Overall, the share price shows a positive growth pattern, indicating increased investor confidence or favorable market conditions over the period. However, the FCFE per share exhibits variability, reflecting fluctuations in cash flow generation for equity shareholders. The P/FCFE ratio's volatility aligns with these changes, suggesting corresponding shifts in market valuation relative to free cash flows. The marked increase in the P/FCFE ratio in 2024 may warrant further investigation to assess the underlying causes and sustainability of market valuations compared to the company’s cash flow performance.