COCA COLA CO

Where It Passes

Where It Falls Short

• Valuation0% pass✓ 1✗ 27▾

  No clean pass — all 13 investors flag at least one valuation criterion

  Price / 3-yr avg EPS37.4x

  ✗Graham<= 15x

  Price-to-Book Ratio13.3x

  ✗Graham<= 1.5x

  P/E x P/B495.80

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)2.92

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value3.0%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=3.0%, ROC=151.1%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS32.6x

  ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price / (CFO / Shares)57.6x

  ✗Dreman< 8x

  Price / Book Value per Share13.3x

  ✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Valuation ReasonablenessP/E=32.6x, OE Yield=2.8%

  ✗MungerP/E < 25 or Owner Earnings Yield > 5%

  P/E or FCF YieldP/E=32.6x, FCF Yield=1.2%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=32.6x, P/B=13.3x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value-149.1% (IV=$39.85 vs Price=$99.25)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share80.6x

  ✗Ackman<= 25

  Price vs. Trailing Low156% of trailing low ($63.48)

  ✗Templeton<= 120% of trailing low (certified split-adjusted live window)

  Net income / market capitalization+3.43%; #2234/6340 (top 35.2%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive book equity / market capitalization+0.0875; #4817/6449 (top 74.7%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS32.6x

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E0.41

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per Share25.60x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change+66.9%

  ✓SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+0.1196; #4230/5247 (top 80.6%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+3.35%; #1972/4519 (top 43.6%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+26.02%; #1135/6202 (top 18.3%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Valuation models0% pass✗ 11▾

  KO overvalued: all 11 models price fair value below $99.25 (median $29.33)

  Graham fair value$22.62

  ✗Graham-338.8% margin vs $99.25

  Buffett fair value$33.58

  ✗Buffett-195.6% margin vs $99.25

  Lynch fair value$33.97

  ✗Lynch-192.2% margin vs $99.25

  Greenblatt fair value$21.47

  ✗Greenblatt-362.3% margin vs $99.25

  Dreman fair value$39.85

  ✗Dreman-149.1% margin vs $99.25

  Munger fair value$14.01

  ✗Munger-608.4% margin vs $99.25

  Pabrai fair value$23.70

  ✗Pabrai-318.8% margin vs $99.25

  Akre fair value$80.56

  ✗Akre-23.2% margin vs $99.25

  Marks fair value$29.33

  ✗Marks-238.4% margin vs $99.25

  Ackman fair value$17.93

  ✗Ackman-453.5% margin vs $99.25

  Templeton fair value$37.23

  ✗Templeton-166.6% margin vs $99.25
• Debt & Leverage17% pass✓ 2✗ 13▾

  10 of 12 flag KO's debt & leverage — Graham, Buffett, Lynch +7 more

  LT Debt vs Net Current Assets

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 1.11, IC: 10.0x

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity1.11

  ✗Lynch< 0.33

  Cash - Long-term Debt

  ✗LynchPositive preferred

  LT Debt / Total Assets Change0.00% -> 0.00%

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities1.38

  ✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)

  Total Debt / Shareholders' Equity1.11

  ✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x

  Debt Levels1.11

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=10.0x, D/EBITDA=2.5x

  ✓MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity1.11

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-1.1117; #3332/4210 (top 79.1%)

  ✗AsnessTop 30% of eligible cross-section
• Verdicts36% pass✓ 5✗ 9▾

  Split decision: 8 FAIL · 3 NEUTRAL · 3 PASS · 2 BUY

  Overall verdict

  ✗GrahamFAIL (3/9)•BuffettNEUTRAL (6/9)✗LynchFAIL (4/7)✗GreenblattRank #801•PiotroskiNEUTRAL (F-Score 7)✗DremanFAIL (3/11)✓MungerPASS (2/4)✗PabraiFAIL (0/3)✗AkreFAIL (2/6)✗MarksFAIL (3/5)✓AckmanPASS (5/9)✓TempletonPASS (4/8)✓SleepBUY (5/6)✓AsnessBUY (Rank #680/2370 (Top 28.7%))•NeffNEUTRAL (4/6)✗SchlossFAIL (3/7)✗OshaughnessyFAIL (Rank #628/963 (Top 65.2%))
• Profitability38% pass✓ 22✗ 13▾

  10 of 16 flag KO's profitability — Graham, Buffett, Lynch +7 more

  Positive EPS (10 years)18/18 years positive

  ✓GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)18/18 years positive

  ✓BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)41.4%

  ✓Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)28.7% (latest)

  ✓BuffettStable or rising over 10 years

  Free Cash Flow Proxy$12.2B

  ✓BuffettPositive and growing

  Earnings Variance (10-yr CoV)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)2.92

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR11.2%

  ✓Lynch15-30% (Fast Grower); > 0% to pass

  ROE39.1%

  ✓Lynch> 15%

  EBIT / Enterprise Value3.0%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=3.0%, ROC=151.1%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets12.50%

  ✓PiotroskiROA > 0

  ROA Change YoY10.57% -> 12.50% (delta: +1.93%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=7.07%, ROA=12.50%

  ✗PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY61.1% -> 61.6%

  ✓PiotroskiImproved YoY

  Pre-Tax Income / Revenue35.0%

  ✓Dreman>= 8%

  Net Income / Shareholders' Equity39.1%

  ✓Dreman> 12%

  Margin of SafetyP/E=32.6x, P/B=13.3x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity41.6% (3-yr avg)

  ✓AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value-149.1% (IV=$39.85 vs Price=$99.25)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency18/18 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue30.0%

  ✓Ackman>= 15%

  Net Income / Shareholders Equity39.1%

  ✓Ackman>= 15%

  5-Year EPS CAGR11.2% CAGR over 5 years

  ✓Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend24.7% (2023) -> 28.7% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 59.5% -> 61.6%, operating margin 24.7% -> 28.7%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  Net income / market capitalization+3.43%; #2234/6340 (top 35.2%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Gross profit / total assets+29.47%; #1470/3702 (top 39.7%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity+39.14%; #303/5226 (top 5.8%)

  ✓AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0082; #705/5884 (top 12.0%)

  ✓AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR11.2% over 5 years

  ✓Neff7%-20% annualized

  Positive Diluted-EPS Years10/10 years positive

  ✓Schloss>= 70% positive over 5-10 observed years (app rule)
• Growth38% pass✓ 7✗ 6▾

  5 of 8 flag KO's growth — Graham, Lynch, Dreman +2 more

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)2.92

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR11.2%

  ✓Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthInv: -8.2% vs Rev: 7.1%

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency18/18 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth2.9%

  ✗Ackman>= 5%

  Positive EPS Growth Frequency3/5 years with positive EPS growth

  ✓AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR11.2% CAGR over 5 years

  ✓Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendgross margin 59.5% -> 61.6%, operating margin 24.7% -> 28.7%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR7.7%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR11.2% over 5 years

  ✓Neff7%-20% annualized
• Cash Flow50% pass✓ 6✗ 6▾

  5 of 10 pass — Piotroski, Dreman, Pabrai +2 more object

  Free Cash Flow Proxy$12.2B

  ✓BuffettPositive and growing

  FCF Positive and Growing$14.3B

  ✓LynchPositive and growing

  Operating Cash Flow$7.4B

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=7.07%, ROA=12.50%

  ✗PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)57.6x

  ✗Dreman< 8x

  P/E or FCF YieldP/E=32.6x, FCF Yield=1.2%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive18/18 years FCF positive

  ✓MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap3.3%

  ✗Ackman>= 4%

  Price / FCF per Share80.6x

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency18/18 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$14.3B

  ✓Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization+3.35%; #1972/4519 (top 43.6%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Efficiency50% pass✓ 6✗ 5▾

  4 of 8 pass — Graham, Piotroski, Dreman +1 more object

  Current Ratio1.38

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)15.8%

  ✓Buffett> 10%

  ROIC - WACC+5.8%

  ✓BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)151.1%

  ✓Greenblatt> 25%

  Current Ratio Change YoY1.03 -> 1.46

  ✓PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.47x -> 0.46x

  ✗PiotroskiImproved YoY

  Current Assets / Current Liabilities1.38

  ✗Dreman> 1.5

  Return on Invested Capital15.4%

  ✓Munger> 15%

  ROIC (high and growing)FY2023: ROIC=14.1%; FY2024: ROIC=11.6%; FY2025: ROIC=14.3%

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROIC3.6% (RR=23% x ROIC=15.4%)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)4/5 years above 12% (latest 14.3%)

  ✓SleepROIC > 12% in a majority of years