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QuestionsCategory: Stock ScreeningCoca cola amatil
Peifeng Xu asked 8 years ago

coca coal amatil has been declining 30% for its high due. One time write off and increase price competition is this an opportunity for value invested to invest a well branding company for long term?
between which valuation method can be use?

1 Answers
Rusmin Ang answered 8 years ago

Hi Peifeng,    
What a good spot you have!     
Before you determine whether a business is a good long-term investment, have you done your homework on Coca-Cola Amatil (listed on the ASX)? If yes, here are some questions you may want to ask yourself:   

  1. What are the reasons for the decline in share price? If it is attributed by poor fundamentals, check which division contributed poorly to the group and determine if it is a long-term structural impact or a temporary setback?
  2. With the intense price competition, do you think Coca-Cola Amatil has pricing power in its industry? 

  I’ve not looked at this company before, but you can refer to the valuation table here.