Is Coca-Cola stock cheap at a 23x P/E?

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.

What is the current KO price target and implied upside?

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.

How attractive is the dividend yield and is it sustainable?

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.

How do interest rates affect Coca-Cola valuation and returns?

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.

What should UK investors check before buying Coca-Cola stock?

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.

Global Market Insights

KO Stock Today: December 22 — Wall Street Buy Consensus vs Fair-Value Debate Near $70

ByHuzaifa Zahoor December 23, 2025December 23, 2025

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.