KO stock verdict - Avoid
KO
Coca-Cola Company (The)
AVOIDConsumer Defensive
$87.71
Overvalued (≥ exit)
$87.71
Heavy$47.25Buy$57.38Fair$67.50Exit$74.25
FUNDAMENTAL56
TECHNICAL85
TRUST SCORE
100High
confidence in this read — data completeness, earnings quality & coverage
Uptrend · EMA20 86.03 · EMA50 83.87 · EMA200 78.1 · RSI 61.7 · MACD below signal
PROS
- Strong return on equity of 41.0% (TTM)
- TTM EPS grew 17.6% year-over-year
- Balance sheet holds net cash (cash exceeds total debt)
- Converts 29% of revenue into free cash flow
- High gross margin of 61% (3-yr avg)
CONS
- Trades above the model's exit level ($74.25) — overvalued on this framework
- Rich for its growth rate (PEG 3.7)
✳ Pros and cons are machine-generated from the latest fundamentals and technicals.
EARNINGS QUALITY · we check the accounting so you don't have to
✓Operating cash flow is 57% of net income — profit is backed by real cash
✓Low accruals — reported profit tracks the cash actually generated
✓Receivables growing in line with sales
Analysis as of 2026-08-16 · price live, fundamentals from latest filings
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FAQ
Why is KO rated Avoid?
KO (Coca-Cola Company (The)) is rated Avoid because the model combines fundamentals, price action, and earnings-quality checks. The current signal is Overvalued (≥ exit). Strong return on equity of 41.0% (TTM) and TTM EPS grew 17.6% year-over-year
Is KO overvalued right now?
KO is trading at $87.71 versus an estimated fair value of $67.50. That puts the stock in avoid territory on this framework. Trades above the model's exit level ($74.25) — overvalued on this framework and Rich for its growth rate (PEG 3.7)
What should I watch before acting on KO?
Watch the trust score of 100, the earnings-quality checks, and any red flags. Trades above the model's exit level ($74.25) — overvalued on this framework and Rich for its growth rate (PEG 3.7)