CHAPTER 6

Valuing Coca-Cola

Chapter 6 shows calculation of free cash flow to equity (FCFE) for Coca-Cola. In this chapter, we calculate the value of Coca-Cola from the input data that we have calculated in chapters 3 to 5. Table 6.1 displays the FCFE and the present value of FCFE for Coca-Cola, 2013 to 2017. The columns represent the following:

Column 1 Year for which FCFE is estimated from 2011 to 2015.

Column 2 Projected FCFE for years 2011 to 2015, assuming a growth rate of 14.99 percent1 from Chapter 3.

Column 3 Present value of FCFE for years 2011 to 2015 discounted at the required rate of return for equity for Coca-Cola of 10.77 percent.2

Table 6.1 Free cash flow to equity (FCFE) and the present value of FCFE for Coca-Cola, 2013 to 2017 ...

Get Corporate Valuation Using the Free Cash Flow Method Applied to Coca-Cola now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.