I am practicing my valuation on Coca Cola.
FCF per share
In this case, the CAGR varies from -2.5 to 9.5. Which CAGR should I be using to calculate PEG and the DCF?
Or should I be using a different valuation ratio for KO? Also what is your advise on investing in mature companies like KO? Good company but seems like there is limited growth prospects.
Hi Chui Ong,
Coca Cola is a well known company and most investor know about it. Hence, the company have a certain PE range that the investor are willing to tag a price to it. You have to find the average trading PE range of Coca Cola and buy it either at the average trading range which is fair value or below.
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