KO is now overvalued and could go down -31%

Based on our analysis, Coca-Cola Company (KO) has received an overvalued rating of 1 out of 5 stars. This assessment is primarily driven by several financial ratios that suggest the company's valuation may be inflated compared to its sector peers. The Price-to-Earnings (PE) ratio for Coca-Cola stands at 28.81, significantly higher than the sector average of 19.43. A higher PE ratio indicates that investors are paying more for each dollar of earnings, which can signal overvaluation if not supported by strong growth prospects. Additionally, Coca-Cola's Price-to-Book (PB) ratio is 10.79, while the sector average is just 2.17. The PB ratio compares a company's market value to its book value, and a higher ratio can indicate overvaluation, especially if the underlying assets do not justify such a premium. Despite Coca-Cola's impressive Net Profit Margin of 22.59, which is well above the sector's -9.39, the company’s high valuation ratios raise concerns about sustainability. The Return on Assets (ROA) ratio of 10.57 also exceeds the sector's -10.32, but it does not alleviate concerns about the overall valuation metrics. In summary, while Coca-Cola demonstrates strong profitability and returns compared to the sector averages, its elevated valuation ratios indicate that it may be overpriced in the current market environment. This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.