Pro-Coca Cola investors often talk about intrinsic value. It is defined as "the actual value of a company or an asset based on an underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors."
In particular, intangible factors are why most investors like to buy coca cola companies, because they believe the financial report does not show the whole picture of what a "great" company coca cola is.
At the moment, CCA has the following financial figures.
P/E:17.2745
Price/Book:4.1154
In particular, looking at book value, a lot of coca cola value is intangible, such as its brand equity, history and its size of operation.
The question now is how much do you value coca cola brand 10xbook value, 1.5xbook value etc. In my opinion, I value well-known brand, because i believe it is a lot easier to sell product/service and retain its customers. But, at the moment, CCA is not. It's having troubles to sell products using its brand. For example, if there was coca cola brand dish-washing detergent, would you be more likely to buy it. I guess most people answer with "No".
The problem I have with CCA is that it's not using its brand to sell product or perhaps its product is just simply too hard to sell (i.e. decline in profit margin). I would still buy coca cola, only if it can continue to differentiate itself and grow its earning. P/E:17.2745 is just too high in my opinion.
