By Bud Labitan,Scott Thompson

For years, now we have questioned how Warren Buffett valued Coca-Cola, (Ko), inventory at this sort of deep discount in 1988. This e-book describes an easy degree discounted money circulation version that supplies an in depth approximation. This workout is our quantitative estimation of Coca Cola's Intrinsic price in line with percentage in 1988. First, we describe our 2-stage "discounted money movement" valuation version. when you consider that intrinsic price is a hugely subjective determine, readers can alter their version to the standard of the company they need to price. KO is now at $41/share... are looking to examine a old valuation that now yields an eighty five% in step with 12 months go back to Berkshire Hathaway? ( capital appreciation + dividends / purchase-adjusted-price of $3.25 ) that's the mystery of compounding in a top quality company like Coca-Cola. the assumption is to examine KO as a bond and practice the fundamental math of "Yield On rate" or "Yield in keeping with share_cost."

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1988 Valuation of Coca-Cola by Bud Labitan,Scott Thompson


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