Fundamental Analysis of Coca-Cola, Inc.

Min Wang

Master's thesis

Abstract:

The main purpose of this thesis is to evaluate the stock intrinsic value of Coca-Cola Company and to help investors to measure whether stock of Coca-Cola Company is worth to buy, hold or sell. It means that the result of this thesis is analysis recommendation for the investors. The thesis is divided into six chapters. The chapter I is the introduction of this thesis which mainly introduces the reasons why we select this theme of fundamental analysis of Coca-Cola Company, the purpose of writing paper and the general framework of paper. The chapter II is the description of fundamental analysis methodology including financial analysis methods, financial equity valuation models and SWOT analysis. In the chapter III, we focus on describing current world economic situation and analyzing the U.S. economy environment using some basic economic indicators and further measuring their influence on the Coca-Cola Company stock price. In chapter IV, we mainly separate four parts to analyze the Coca-Cola Company's industry environment including introducing basic situation, positioning industry type, analyzing industry life cycle and measuring the company-owned industry competitive environment using Porter five forces analysis model to further analyze the influence of industry environment on the Coca-Cola Company stock price. Chapter V is the company analysis of Coca-Cola Company from 2009 to 2013. This chapter is divided into five parts. Firstly, we use financial analysis method to measure company financial situation. Secondly, we use special financial equity valuation models to determine the company stock intrinsic value. Thirdly, we summarize the estimated equity intrinsic value and help the investors to analyze whether Coca-Cola Company stock is worth to buy, hold or sell. Then we use SWOT analysis to analyze the situation of Coca-Cola Company during these years and find out possible solutions for its problems. At the end of this section, we give the investment recommendation for investors based on company analysis. The chapter VI is the conclusion of the thesis which mainly contains the description of fundamental analysis, the summary of macroeconomic environment, industry conditions and company own financial position and influence of these factors on the Coca-Cola Company stock price, results of the intrinsic value of Coca-Cola Company stock, opinion on company development and investment recommendation on the Coca-Cola Company stock price.

Abstract:

The main purpose of this thesis is to evaluate the stock intrinsic value of Coca-Cola Company and to help investors to measure whether stock of Coca-Cola Company is worth to buy, hold or sell. It means that the result of this thesis is analysis recommendation for the investors. The thesis is divided into six chapters. The chapter I is the introduction of this thesis which mainly introduces the reasons why we select this theme of fundamental analysis of Coca-Cola Company, the purpose of writing paper and the general framework of paper. The chapter II is the description of fundamental analysis methodology including financial analysis methods, financial equity valuation models and SWOT analysis. In the chapter III, we focus on describing current world economic situation and analyzing the U.S. economy environment using some basic economic indicators and further measuring their influence on the Coca-Cola Company stock price. In chapter IV, we mainly separate four parts to analyze the Coca-Cola Company's industry environment including introducing basic situation, positioning industry type, analyzing industry life cycle and measuring the company-owned industry competitive environment using Porter five forces analysis model to further analyze the influence of industry environment on the Coca-Cola Company stock price. Chapter V is the company analysis of Coca-Cola Company from 2009 to 2013. This chapter is divided into five parts. Firstly, we use financial analysis method to measure company financial situation. Secondly, we use special financial equity valuation models to determine the company stock intrinsic value. Thirdly, we summarize the estimated equity intrinsic value and help the investors to analyze whether Coca-Cola Company stock is worth to buy, hold or sell. Then we use SWOT analysis to analyze the situation of Coca-Cola Company during these years and find out possible solutions for its problems. At the end of this section, we give the investment recommendation for investors based on company analysis. The chapter VI is the conclusion of the thesis which mainly contains the description of fundamental analysis, the summary of macroeconomic environment, industry conditions and company own financial position and influence of these factors on the Coca-Cola Company stock price, results of the intrinsic value of Coca-Cola Company stock, opinion on company development and investment recommendation on the Coca-Cola Company stock price.

Keywords

Fundamental Analysis, Financial analysis, Macroeconomic Analysis, Industry Analysis, Company Analysis, Investment recommendations, Coca-Cola Company, Stock current price, Stock intrinsic value

Keywords

Fundamental Analysis, Financial analysis, Macroeconomic Analysis, Industry Analysis, Company Analysis, Investment recommendations, Coca-Cola Company, Stock current price, Stock intrinsic value

Language used: English

Date on which the thesis was submitted / produced: 25. 4. 2015

Thesis defence

• Date of defence: 28. 5. 2015
• Supervisor: Kateřina Kořená
• Reader: Martina Novotná

VŠB - Technical University of Ostrava

Ekonomická fakulta

Master programme / field:
Hospodářská politika a správa / Finance