KO Stock Today: December 22 — Wall Street Buy Consensus vs Fair-Value Debate Near $70
Coca-Cola stock is steady near $70.21 today as the Street keeps an average Buy and a $79 KO price target. That implies about 12.5% upside while some models say shares trade close to fair value at a 23.24 P/E. Income seekers eye the 2.9% dividend yield and the brand’s strong cash profile. UK investors should also weigh FX, US withholding tax, and rates. We review the split in views, today’s levels, and what could move KO into 2026.
Street targets and implied upside
Coca-Cola stock carries 8 Buy ratings and a consensus $79 target, with a $76 to $82 range. From $70.21, that points to roughly 12.5% potential upside. Broker surveys still flag the name as a defensive compounder with high brand equity, as echoed by recent coverage of an average Buy stance source.
Targets are set in USD, so returns for UK holders depend on GBP/USD moves as well as price gains. Dividends are paid in dollars and typically face 15% US withholding for UK investors who file W-8BEN. With KO price target debates ongoing, position sizing should account for FX swings, tax drag, and the role of Coca-Cola stock within a diversified income sleeve.
Is KO near fair value at 23x earnings?
At $70.21 and EPS of $3.02, Coca-Cola valuation stands at a 23.24 P/E, with EV/EBITDA at 18.17 and a PEG near 3.29. Price to free cash flow is high at 54.40, implying a 1.84% FCF yield. These marks support the view that shares sit near fair value rather than deep value, after a recent run near $70 noted by coverage on upside limits source.
Quality is the counterpoint. Net margin is 27.34%, ROE is 47.01%, and interest coverage is 8.85x. Operating margin runs near 30.69%, and brand strength supports pricing. Debt to equity is 1.52, which needs monitoring, but cash generation and global scale give resilience. For many, Coca-Cola valuation reflects durable returns through cycles rather than aggressive growth expectations.
Income case and the rate backdrop
Coca-Cola stock offers a 2.90% dividend yield on a $2.04 TTM payout and a 65.0% payout ratio. That is supported by stable cash flows, though the FCF yield of 1.84% suggests limited room for large hikes without growth. The company’s record of annual increases matters for income planning, but reinvestment needs and FX for UK holders should be considered alongside the headline dividend yield.
Lower policy rates into 2026 could lift staples’ valuations and support income strategies. If bond yields drift down, equity yield gaps can widen, which may help a steady payer like KO. Conversely, if yields stay firm, a 23x multiple can face pressure. UK investors may compare after-tax cash flow from Coca-Cola stock with GBP income options, keeping sector mix and risk budget in view.
Price action and levels to watch
Price sits at $70.21, day range $69.66 to $70.22, versus a 52-week $60.62 to $74.38. It trades around both the 50-day $70.13 and 200-day $69.92 averages. RSI is 47 (neutral), ADX 21.91 suggests a weak trend, and MACD is slightly below signal. Bollinger mid sits at 71.03 and lower at 68.72. ATR is 0.98, pointing to moderate daily swings. Volume is 12.4m vs a 19.2m average.
The next earnings date is 10 February 2026. Watch pricing power, mix, and any commentary on cost inputs. UK read-through from Costa Coffee trends can matter for local sentiment. Model paths show a 1-year level near $71.99, 3-year $83.30, and 5-year $94.61. For traders, a sustained break above $71 with rising volume would be constructive, while $68.7 is near first support.
Final Thoughts
Here is the trade-off we see. Wall Street’s average Buy and $79 target signal confidence in brand strength and cash generation. A 2.9% yield, robust margins, and high ROE add support. On the other hand, a 23x P/E, a high price to free cash flow, and rate sensitivity limit rerating without clean earnings beats. For UK investors, returns hinge on USD exposure and US dividend withholding. A practical plan is to scale entries near support, reinvest dividends, and review FX effects quarterly. If your goal is steady income and lower volatility, Coca-Cola stock can fit a core consumer defensive slot, provided you accept valuation risk and keep position sizes disciplined.
FAQs
At $70.21 and EPS of $3.02, KO trades at a 23.24 P/E. That is not cheap versus cash flow, with price to free cash flow at 54.40 and a PEG near 3.29. The multiple reflects brand strength, pricing power, and high margins. If earnings grow mid single digits, returns should lean on dividends plus modest expansion. Value buyers may prefer pullbacks near support. Quality-focused investors may accept today’s Coca-Cola valuation for stability.
Broker surveys show an average 12-month KO price target of $79, with a range of $76 to $82. From $70.21, that implies around 12.5% upside. The Street lists 8 Buy ratings and no Holds or Sells in the latest tally. Remember that targets are in USD and change with new results. For UK investors, final returns also depend on GBP/USD moves, transaction costs, and dividend reinvestment outcomes.
Coca-Cola stock offers a 2.90% dividend yield on a $2.04 TTM payout with a 65.0% payout ratio. Net margin at 27.34% and strong ROE support the distribution, though price to free cash flow at 54.40 signals a low FCF yield of 1.84%. The company’s dividend growth record is a plus, but future increases likely track earnings growth. UK holders should factor in 15% US withholding and GBP/USD effects on income received.
Rate paths shape equity multiples. If policy rates fall into 2026, income assets can gain support, and staples like KO may see better relative demand. If yields stay firm, a 23x P/E leaves less room for expansion, and price returns may rely on earnings growth and dividends. For UK investors, compare after-tax dividend yield with GBP income options and consider duration of your equity income sleeve before adding exposure.
Confirm your account setup for US shares, complete a W-8BEN to access treaty withholding rates, and review FX costs. Compare Coca-Cola valuation and yield with your existing holdings and UK income assets. Set alerts around $68.7 to $71 technical levels, and track the 10 February 2026 earnings date. Reassess position size if macro news shifts rate expectations, since consumer staples multiples are sensitive to bond yields.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
