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Apply the regression method to evaluate the relative valuation of Coca-Cola, Pepsi, and other firms in the beverage sector. The data file (RV of
Apply the regression method to evaluate the relative valuation of Coca-Cola, Pepsi, and other firms in the beverage sector. The data file (RV of CocaCola - Data) Excel's Regression analysis: Install "Data Analysis" using Add-ins (under File > Options) for Analysis ToolPak. Estimate regression: PE = a + *Expected Growth + 8*Std Dev Calculate predicted PE using estimated regression equation. Compare Actual PE to Predicted PE. How are Coca-Cola, Pepsi and other firms valued relatively?|| Company Name Trailing PE Expected Growth Standard Dev Coca-Cola Bottling 29.2 9.5% 20.6% Molson Inc. Ltd. 'A' 43.7 15.5% 21.9% Anheuser-Busch 24.3 11.0% 22.9% Corby Distilleries Ltd. 16.2 7.5% 23.7% Chalone Wine Group L 21.8 14.0% 24.1% Andres Wines Ltd. 'A' 9.0 3.5% 24.7% Todhunter Int'l 8.9 3.0% 25.7% Brown-Forman 'B' 10.1 11.5% 29.4% Coors (Adolph) 'B' 23.0 10.0% 29.5% PepsiCo, Inc. 33.0 10.5% 31.4% Coca-Cola 44.3 19.0% 35.5% Boston Beer 'A' 10.6 17.1% 39.6% Whitman Corp. 25.2 11.5% 44.3% Mondavi (Robert) 'A' 16.5 14.0% 45.8% Coca-Cola Enterprises 37.1 27.0% 51.3% Hansen Natural Corp 9.7 17.0% 62.5% Average = 22.7 median = 22.4
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