In this analysis, I will be using the Discounted Cash Flow Formula to create a stock price target for Coca-Cola Company (NYSE:KO). Using different metrics to find a stock price target is a valuable ingredient in stock research.
I believe using the Discounted Cash Flow valuation model for Coca-Cola to be fair because DCF analysis can help one see where the company’s value is coming from and one can generate an opinion based on that.
The Discounted Cash Flow valuation
Continue reading Is Coca-Cola Undervalued At These Levels? $KO
Understanding Coca-Cola’s Company’s (NYSE:KO) cost of debt, cost of equity and WACC is an important factor in stock research. Using these formulas an investor will understand how much the shareholder should expect in return for the stock over the long-term, how much the company pays for its debt and how much the company needs in return to break even on its investments.
Cost of Debt
The cost of debt is the effective rate that a company pays on its total
Continue reading Coca-Cola: Fundamental Analysis WACC, Cost of Debt and Cost of Equity $KO
Even with uncertainty in the economy, and continued pressure to compete for market share, Lowe’s (LOW) strategy of “investing in ways that will better position itself for success” has had, and will continue to have a positive impact on sales, and profits going into fiscal year 2012.
For the period ending February 3rd, 2012, Lowe’s revenue increased 11.0% to $11.6 billion, up from $10.5 billion in Q4 2010. Lowe’s reported earnings of $322 million, or 26 cents per share, is
Continue reading Lowes: A Solid Strategy For Success (NYSE:LOW)
Looking at profitability is a very important step in understanding a company. Profitability is essentially why the company exists, and a key component of deciding to invest or to remain invested in a company. There are many metrics involved in calculating profitability, but for this article, I will look at PepsiCo’s (PEP) earnings and earnings growth, profit margins, profitability ratios, and cash flow.
Through the above-mentioned four main metrics, we will be able to understand more about the company’s profitability.
Continue reading PepsiCo Inc. – (NYSE: PEP) Profitability Analysis
1. Estimated Sales = $49.63 billion
2. Estimated Profit Margin = 18.30%
3. Earnings = $9.085 billion
4. Shares Outstanding = 2.26 billion
5. Estimated EPS = $4.02
6. Forward P/E = 18.6
KO – The Coca-Cola Company – Stock Price Target for 2012 = $74.77 USD
Action Analyst Rating Price Date Maintain S&P Research Strong Buy $87.00 06/13/12 Downgrade JP Morgan Neutral $76.00 06/07/12 Target S&P Research Strong Buy $87.00 « $86.00 05/11/12
Continue reading KO – Coca-Cola Company – Stock Price Target 2012