AINVESTOR

Is KO a Buy? Coca-Cola Stock Analysis & Fair Value (2026)

Our model currently rates KO as a Sell.

Get the latest investment score, DCF valuation, and buy/sell/hold insights for Coca-Cola Co (KO).

Last Analyzed: 28/02/2026

Stock Analysis & Score Explanation

Coca-Cola Co (KO)
$81.56
Fundament Score Analysis
67.11/100
Fair Value Analysis
Current Price
$81.56
Fair Value
$48.63
Overvalued by 40.4%
Sell recommendation based on:
  • ✓Fundament Score Analysis
  • ✓Fair Value Analysis
  • ✓Industry Context:
Confidence Level: –/10

Fair Value Analysis

Weighted Fair Value

$48.63

Based on Multiple Valuation Methods (Weighted Average)

Current Price

$81.56

Overvalued by 40.38%

Individual Valuation Methods:

Discounted Cash FlowOpen Discounted Cash Flow definition
Available
$51.26
Peter Lynch Fair ValueOpen Peter Lynch Fair Value definition
Available
$33.85
Trading Multiples PEOpen Trading Multiples PE definition
Available
$60.77
Earnings Power ValueOpen Earnings Power Value definition
Insufficient data for this calculation
N/A

DCF Model Assumptions:

Growth Rate: 7.08%
Discount Rate: 8.6%
Terminal Growth: 3.5%
Projection: 5 years

Stock Analysis & Score Explanation

This stock receives a score of 67.11/100 with a Sell recommendation. Financial health scored 41.11/55, competitive position 13.75/25, macro risk assessment 8.34/10, and risk-adjusted returns 3.91/10. The analysis considers current market conditions and fundamental metrics. This score reflects the financial health, growth potential, and overall valuation of the stock, helping investors determine whether it may be overvalued or undervalued. Learn more about the AInvestor Score and how it is calculated. See how we convert scores and fair-value signals into actionable labels in the AInvestor Recommendation glossary entry.

Overvalued by 40.38%. Our detailed stock valuation analysis indicates that overvalued at current market prices by 40.38%. The weighted fair value of $48.63 is calculated using multiple proven valuation methods, including Discounted Cash Flow (DCF), Peter Lynch Fair Value, Trading Multiples P/E, and Earnings Power Value (EPV). This comprehensive stock analysis is designed to guide informed investment decisions.

Industry Context: Consumer Staples

Defensive
↔️ Neutral

2026 Trend: ↔️ Neutral

Defensive positive outlook from demand resilience during recessions, but muted by pricing power normalization and private label competition.

Bubble Watch: Margin Compression

Staples retailers may be defensively overvalued if investors pile in during recession fears while overlooking long-term growth limitations.

Key 2026 Outlook Points

  • →Premium and super-premium product lines growing faster than budget
  • →DTC channels and e-commerce displacing traditional distribution
  • →Sustainable packaging and circular economy becoming norms
  • →Health and wellness driving new product development
View full sector analysis & deep insights →