Using Coca-Cola (KO), a publicly-traded company, estimate their common stock price using the Dividend Discount Model (DDM).
Defend why DDM is best to use compared to other popular models and explain why it is appropriate to use for Coca-Cola's stock. Be sure to explain how you arrived at any assumptions regarding the values used in the model. Determine whether your company appears to be correctly valued, overvalued, or undervalued based on Coca-Cola's stock current price and model result. Check Yahoo Finance photo below current stock prices. Finally, explain why your company's stock appears to be over-, under-, or correctly valued.
The Coca-Cola Company (KO) ( NYSE - NYSE Delayed Price. Currency in USD Add to watchlist 88 Visitors trend zw 10W + 9MT Quote Lookup 58.40 -0.46 (-0.78%) Buy Sell At close: January 31 4:02PM EST Summary Company Outlook @ Chart Conversations Statistics Historical Data Profile Financial Analysis Options Holders Sustainability Previous Close 58.86 Market Cap 250.214B 1D 5D 1M 6M YTD 1Y SY Max Full screen 59.20 People Also Watch Open 58.97 Beta (5Y Monthly) 0.42 Symbol Last Price Change % Change 58.86 Bid 58.40 x 800 PE Ratio (TTM) 28.21 PG 124.62 Procter & Gamble Company (The) -1.33 -1.06% Ask 58.54 x 3100 EPS (TTM) 2.07 58.40 JNJ 148.87 Johnson & Johnson -1.49 -0.99% Day's Range 58.15 - 59.08 Apr 20, 2020- Apr 26, 2020 Earnings Date 58.00 +0.50 +0.36% 52 Week Range 44.42 - 59.08 Forward Dividend & Yield 1.60 (2.74%) DIS 138.31 Walt Disney Company (The) 142.02 Pepsico, Inc. Volume 16,078,322 Ex-Dividend Date Nov 29, 2019 -1.81 -1.26% 10 AM 12 PM 02 PM 0 PM Trade prices are not sourced from all markets Avg. Volume 12,025,563 1y Target Est 60.29 WMT Walmart Inc. 114.49 -2.09 -1.79% View more ideas HOLD Overvalued Analyst Recommendation by Argus Research Fair Value View details All Short Term Mid Term Long Tem Total ESG Risk score > 26.1 Medium 40th percentile All News Press Releases Research Reports The Coca-Cola Company (KO) ( NYSE - NYSE Delayed Price. Currency in USD Add to watchlist 88 Visitors trend zw 10W + 9MT Quote Lookup 58.40 -0.46 (-0.78%) Buy Sell At close: January 31 4:02PM EST Summary Company Outlook @ Chart Conversations Statistics Historical Data Profile Financial Analysis Options Holders Sustainability Previous Close 58.86 Market Cap 250.214B 1D 5D 1M 6M YTD 1Y SY Max Full screen 59.20 People Also Watch Open 58.97 Beta (5Y Monthly) 0.42 Symbol Last Price Change % Change 58.86 Bid 58.40 x 800 PE Ratio (TTM) 28.21 PG 124.62 Procter & Gamble Company (The) -1.33 -1.06% Ask 58.54 x 3100 EPS (TTM) 2.07 58.40 JNJ 148.87 Johnson & Johnson -1.49 -0.99% Day's Range 58.15 - 59.08 Apr 20, 2020- Apr 26, 2020 Earnings Date 58.00 +0.50 +0.36% 52 Week Range 44.42 - 59.08 Forward Dividend & Yield 1.60 (2.74%) DIS 138.31 Walt Disney Company (The) 142.02 Pepsico, Inc. Volume 16,078,322 Ex-Dividend Date Nov 29, 2019 -1.81 -1.26% 10 AM 12 PM 02 PM 0 PM Trade prices are not sourced from all markets Avg. Volume 12,025,563 1y Target Est 60.29 WMT Walmart Inc. 114.49 -2.09 -1.79% View more ideas HOLD Overvalued Analyst Recommendation by Argus Research Fair Value View details All Short Term Mid Term Long Tem Total ESG Risk score > 26.1 Medium 40th percentile All News Press Releases Research Reports
