The Coca-Cola Company (NYSE:KO) kept active in under and overvalue discussion, KO holds price to book ratio of 7.03 that presents much better indicator to find market price of a share price over its book value of equity for investment valuation. In addition, the firm has price to earnings ratio of 24.94, which is authentic method to judge but not universal for all situation.
Fundament/ News Factor in Focus
The Coca-Cola Firm and its global bottling partners reported on Monday that they have met their goal to replenish, or in other words balance, the equivalent amount of water used in their global sales volume back to nature and communities. Based on this achievement, Coca-Cola is the first Fortune 500 firm to publicly claim achieving such an aggressive water replenishment target.
“This achievement marks a moment of pride for Coca-Cola and our partners. A goal that started as aspiration in 2007 is recently a reality and a global milestone we plan to maintain as our business grows,” stated Muhtar Kent, Chairman and CEO, The Coca-Cola Firm.
Taking look on ratio analysis, KO has forward price to earnings ratio of 21.57, compare to its price to earnings ratio of 24.94. Adding one more ration to find detail valuation of security, price to earnings growth ration that stands at 8.31. The co is presenting price to cash flow as 7.83 and while calculating price to free cash flow it concluded at 228.46, the low single digit may indicate stock is undervalued and vise versa. On other hand, keeping in mind stable cash flows but few growth prospects make traders to value lower.
The firm has price volatility of 0.76% for a week and 0.73% for a month. Its beta stands at 0.58 times. Narrow down four to firm performance, its weekly performance was -1.37% and monthly performance was -0.76%.
Tesla Motors, Inc. (NASDAQ:TSLA) runs in leading trade, it are easing down -0.44% to traded at $219.99. TSLA attains analyst recommendation of 2.90 on scale of 1-5 with week’s performance of -2.23%.
Tesla Motors, Inc. TSLA has secured antitrust approval from the Federal Trade Commission (FTC) for its deal to acquire SolarCity Corporation SCTY. In fact, the deal has obtained early termination, which means that the waiting period for the acquisition will conclude before the statutory period expires, per the FTC.
Tesla revealed the agreement to acquire SolarCity for $2.6 billion in an all-stock purchase on Aug 1. Per the deal, SolarCity stockholders will receive 0.11 Tesla shares for each stock of SolarCity. When considering the weighted average price for Tesla stock over the week before the announcement, the deal ends up valuing each SolarCity share at $25.37. The figure represents a discount compared to Tesla’s previous offer to buy SolarCity for $26.50–$28.50 per share.
EPS estimates indicating constrictive facts, the current year from sell-side analysts, Price to current year EPS stands at -193.60%, and looking further price to next year’s EPS is 303.60%. While take a short look on price to sales ratio, that was 7.19.