Open Daily: 10am - 10pm | Alley door pickup 10am - 7pm 3038 Hennepin Ave Minneapolis, MN
612-822-4611

  • Open Daily: 10am - 10pm
    Alley-side Pickup: 10am - 7pm

    3038 Hennepin Ave Minneapolis, MN
    612-822-4611

Open Daily: 10am - 10pm | Alley-side Pickup: 10am - 7pm
3038 Hennepin Ave Minneapolis, MN
612-822-4611
1988 Valuation of Coca-Cola

1988 Valuation of Coca-Cola

Labitan, Bud

Paperback

Business General

ISBN10: 1300916265
ISBN13: 9781300916260
Publisher: Lulu.com
Published: Apr 8 2013
Pages: 40
Weight: 0.26
Height: 0.08 Width: 8.50 Depth: 11.00
Language: English
For years, we have wondered how Warren Buffett valued Coca-Cola, (KO), stock at such a deep bargain in 1988. This book describes a simple two stage discounted cash flow model that delivers a close approximation. This exercise is our quantitative estimation of Coca Cola's Intrinsic Value Per Share in 1988. First, we describe our 2-stage discounted cash flow valuation model. Our estimating model is strict. It assumes a business will only live for 20 years. Within the model, we apply compounding growth to the first 10 years. Then, we assume a lower growth rate for years 11 till the end of year 20. Since intrinsic value is a highly subjective figure, readers can adjust their model to the quality of the business they wish to value. This book also describes the Warren Buffett secret of Yield On Cost when investing in a high quality business bargain.

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