Jae Jun

Author mail questions or comments to: jjun0366@gmail.com

www.oldschoolvalue.com

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Nothing on Old School Value, related pages, emails, or other communications by the author, either written or oral, are intended to be a
recommendation to either buy, hold, or sell any specific security or group of securities. Likewise, nothing herein should be construed as an
endorsement of any financial adviser, investment manager, commercial information provider, transaction service, or brokerage firm.

The findings from this spreadsheet is merely a start to a means of further research and uncovering a great business and investment. Old
School Value holds no responsibility for any investment whatsoever.
Company Name ticker

Coca-Cola Co. KO
2/24/2009 all figures in $Mil
Financial Data
KO 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 TTM

Income Statement
Revenue $ 18,813.0 $ 19,805.0 $ 20,458.0 $ 20,092.0 $ 19,564.0 $ 21,044.0 $ 21,962.0 $ 23,104.0 $ 24,088.0 $ 28,857.0 $ 32,149.0
COGS $ 5,562.0 $ 6,009.0 $ 6,204.0 $ 6,044.0 $ 7,105.0 $ 7,762.0 $ 7,638.0 $ 8,195.0 $ 8,164.0 $ 10,406.0 $ 11,447.0
COGS (%) 29.6% 30.3% 30.3% 30.1% 36.3% 36.9% 34.8% 35.5% 33.9% 36.1% 35.6%

Gross Profit $ 13,251.0 $ 13,796.0 $ 14,254.0 $ 14,048.0 $ 12,459.0 $ 13,282.0 $ 14,324.0 $ 14,909.0 $ 15,924.0 $ 18,451.0 $ 20,702.0

Gross Profit (%) 70.4% 69.7% 69.7% 69.9% 63.7% 63.1% 65.2% 64.5% 66.1% 63.9% 64.4%

Operating Expenses
SG&A $ 8,284.0 $ 9,001.0 $ 9,120.0 $ 8,696.0 $ 7,001.0 $ 7,488.0 $ 8,146.0 $ 8,739.0 $ 9,431.0 $ 10,945.0 $ 12,069.0
SG&A (%) 44.0% 45.4% 44.6% 43.3% 35.8% 35.6% 37.1% 37.8% 39.2% 37.9% 37.5%
R&D $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
R&D (%) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Other $ - $ 813.0 $ 1,443.0 $ - $ - $ 573.0 $ 480.0 $ 85.0 $ 185.0 $ 254.0 $ 367.0
Other (%) 0.0% 4.1% 7.1% 0.0% 0.0% 2.7% 2.2% 0.4% 0.8% 0.9% 1.1%

Operating Income $ 4,967.0 $ 3,982.0 $ 3,691.0 $ 5,352.0 $ 5,458.0 $ 5,221.0 $ 5,698.0 $ 6,085.0 $ 6,308.0 $ 7,252.0 $ 8,266.0

Operating Income (%) 26.4% 20.1% 18.0% 26.6% 27.9% 24.8% 25.9% 26.3% 26.2% 25.1% 25.7%

Other Income and Expense

Net Int Inc & Other $ 172.0 $ 21.0 $ (3.0) $ 75.0 $ (343.0) $ (140.0) $ 524.0 $ 605.0 $ 270.0 $ 621.0 $ (354.0)
Earnings Before Taxes $ 5,198.0 $ 3,819.0 $ 3,399.0 $ 5,670.0 $ 5,499.0 $ 5,495.0 $ 6,222.0 $ 6,690.0 $ 6,578.0 $ 7,873.0 $ 7,912.0
Income Taxes $ 1,665.0 $ 1,388.0 $ 1,222.0 $ 1,691.0 $ 1,523.0 $ 1,148.0 $ 1,375.0 $ 1,818.0 $ 1,498.0 $ 1,892.0 $ 1,886.0
Earnings After Taxes $ 3,533.0 $ 2,431.0 $ 2,177.0 $ 3,979.0 $ 3,976.0 $ 4,347.0 $ 4,847.0 $ 4,872.0 $ 5,080.0 $ 5,981.0 $ 6,026.0
Acctg Changes $ - $ - $ - $ (10.0) $ (926.0) $ - $ - $ - $ - $ - $ -
Disc Operations $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Ext Items $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Net Income $ 3,533.0 $ 2,431.0 $ 2,177.0 $ 3,969.0 $ 3,050.0 $ 4,347.0 $ 4,847.0 $ 4,872.0 $ 5,080.0 $ 5,981.0 $ 6,026.0

Net Income (%) 18.8% 12.3% 10.6% 19.8% 15.6% 20.7% 22.1% 21.1% 21.1% 20.7% 18.7%
Diluted EPS, Cont Ops$ $ - $ 1.0 $ 0.9 $ 1.6 $ 1.6 $ 1.8 $ 2.0 $ 2.0 $ 2.2 $ 2.6 $ 2.6
Diluted EPS$ $ - $ 1.0 $ 0.9 $ 1.6 $ 1.2 $ 1.8 $ 2.0 $ 2.0 $ 2.2 $ 2.6 $ 2.6
Shares 0 2487 2487 2487 2483 2462 2429 2393 2350 2331 2342

Balance Sheet

Assets
Cash and Equiv $ 1,648.0 $ 1,611.0 $ 1,819.0 $ 1,866.0 $ 2,126.0 $ 3,362.0 $ 6,707.0 $ 4,701.0 $ 2,440.0 $ 4,093.0 $ 7,797.0
Short-Term Investments $ 159.0 $ 201.0 $ 73.0 $ 68.0 $ 219.0 $ 120.0 $ 61.0 $ 66.0 $ 150.0 $ 215.0 $ 287.0
Accts Rec $ 1,666.0 $ 1,798.0 $ 1,757.0 $ 1,882.0 $ 2,097.0 $ 2,091.0 $ 2,171.0 $ 2,281.0 $ 2,587.0 $ 3,317.0 $ 3,674.0
Inventory $ 890.0 $ 1,076.0 $ 1,066.0 $ 1,055.0 $ 1,294.0 $ 1,252.0 $ 1,420.0 $ 1,424.0 $ 1,641.0 $ 2,220.0 $ 2,321.0
Other Current Assets $ 2,017.0 $ 1,794.0 $ 1,905.0 $ 2,300.0 $ 1,616.0 $ 1,571.0 $ 1,735.0 $ 1,778.0 $ 1,623.0 $ 2,260.0 $ 2,741.0

Total Current Assets $ 6,380.0 $ 6,480.0 $ 6,620.0 $ 7,171.0 $ 7,352.0 $ 8,396.0 $ 12,094.0 $ 10,250.0 $ 8,441.0 $ 12,105.0 $ 16,820.0
Net PP&E $ 3,669.0 $ 4,267.0 $ 4,168.0 $ 4,453.0 $ 5,911.0 $ 6,097.0 $ 6,091.0 $ 5,786.0 $ 6,903.0 $ 8,493.0 $ 8,527.0
Intangibles $ 547.0 $ 1,960.0 $ 1,917.0 $ 2,579.0 $ 3,553.0 $ 3,989.0 $ 3,836.0 $ 3,821.0 $ 5,135.0 $ 12,219.0 $ 12,787.0
Other Long-Term Assets $ 8,549.0 $ 8,916.0 $ 8,129.0 $ 8,214.0 $ 7,685.0 $ 8,860.0 $ 9,306.0 $ 9,570.0 $ 9,484.0 $ 10,452.0 $ 10,046.0

Total Assets $ 19,145.0 $ 21,623.0 $ 20,834.0 $ 22,417.0 $ 24,501.0 $ 27,342.0 $ 31,327.0 $ 29,427.0 $ 29,963.0 $ 43,269.0 $ 48,180.0

Liabilities & Stockholders' Equity

Accts Payable $ 3,141.0 $ 3,714.0 $ 3,905.0 $ 3,679.0 $ 3,692.0 $ 4,058.0 $ 4,283.0 $ 4,493.0 $ 929.0 $ - $ -
Short-Term Debt $ 4,462.0 $ 5,373.0 $ 4,816.0 $ 3,899.0 $ 2,655.0 $ 2,906.0 $ 6,021.0 $ 4,546.0 $ 3,268.0 $ 133.0 $ 536.0
Taxes Payable $ 1,037.0 $ 769.0 $ 600.0 $ 851.0 $ 994.0 $ 922.0 $ 667.0 $ 797.0 $ 567.0 $ 258.0 $ 281.0
Accrued Liabilities $ - $ - $ - $ - $ - $ - $ - $ - $ 4,126.0 $ - $ -
Other Short-Term
Liabilities $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 12,834.0 $ 15,770.0

Total Current Liabilities $ 8,640.0 $ 9,856.0 $ 9,321.0 $ 8,429.0 $ 7,341.0 $ 7,886.0 $ 10,971.0 $ 9,836.0 $ 8,890.0 $ 13,225.0 $ 16,587.0
Long-Term Debt $ 687.0 $ 854.0 $ 835.0 $ 1,219.0 $ 2,701.0 $ 2,517.0 $ 1,157.0 $ 1,154.0 $ 1,314.0 $ 3,277.0 $ 2,877.0
Other Long-Term
Liabilities $ 1,415.0 $ 1,400.0 $ 1,362.0 $ 1,403.0 $ 2,659.0 $ 2,849.0 $ 3,264.0 $ 2,082.0 $ 2,839.0 $ 5,023.0 $ 4,971.0

Total Liabilities $ 10,742.0 $ 12,110.0 $ 11,518.0 $ 11,051.0 $ 12,701.0 $ 13,252.0 $ 15,392.0 $ 13,072.0 $ 13,043.0 $ 21,525.0 $ 24,435.0
Total Equity $ 8,403.0 $ 9,513.0 $ 9,316.0 $ 11,366.0 $ 11,800.0 $ 14,090.0 $ 15,935.0 $ 16,355.0 $ 16,920.0 $ 21,744.0 $ 23,745.0

Total Liabilities & Equity $ 19,145.0 $ 21,623.0 $ 20,834.0 $ 22,417.0 $ 24,501.0 $ 27,342.0 $ 31,327.0 $ 29,427.0 $ 29,963.0 $ 43,269.0 $ 48,180.0
Cash Flows Statement

Cash Flows From Operating Activities

Net Income $ 3,533.0 $ 2,431.0 $ 2,177.0 $ 3,969.0 $ 3,050.0 $ 4,347.0 $ 4,847.0 $ 4,872.0 $ 5,080.0 $ 5,981.0 $ 6,026.0
Depr & Amort $ 645.0 $ 792.0 $ 773.0 $ 803.0 $ 806.0 $ 850.0 $ 893.0 $ 932.0 $ 938.0 $ 1,163.0 $ 1,312.0
Deferred Taxes $ (38.0) $ 97.0 $ 3.0 $ 56.0 $ 40.0 $ (188.0) $ 162.0 $ (88.0) $ (35.0) $ 109.0 $ (45.0)
Other $ (707.0) $ 563.0 $ 632.0 $ (718.0) $ 846.0 $ 447.0 $ 66.0 $ 707.0 $ (26.0) $ (103.0) $ 68.0

Cash from Operations $ 3,433.0 $ 3,883.0 $ 3,585.0 $ 4,110.0 $ 4,742.0 $ 5,456.0 $ 5,968.0 $ 6,423.0 $ 5,957.0 $ 7,150.0 $ 7,361.0

Cash Flows From Investing Activities

Cap Ex $ (863.0) $ (1,069.0) $ (733.0) $ (769.0) $ (851.0) $ (812.0) $ (755.0) $ (899.0) $ (1,407.0) $ (1,648.0) $ (1,927.0)
Purchase of Business $ (1,428.0) $ (1,876.0) $ (397.0) $ (651.0) $ (544.0) $ (359.0) $ (267.0) $ (637.0) $ (901.0) $ - $ -
Other $ 130.0 $ (476.0) $ (35.0) $ 232.0 $ 208.0 $ 235.0 $ 519.0 $ 40.0 $ 608.0 $ (5,071.0) $ (1,974.0)

Cash from Investing $ (2,161.0) $ (3,421.0) $ (1,165.0) $ (1,188.0) $ (1,187.0) $ (936.0) $ (503.0) $ (1,496.0) $ (1,700.0) $ (6,719.0) $ (3,901.0)

Cash Flows From Financing Activities

Net Issuance of Stock $ (1,261.0) $ 153.0 $ 198.0 $ (113.0) $ (584.0) $ (1,342.0) $ (1,546.0) $ (1,825.0) $ (2,268.0) $ (219.0) $ (42.0)
Net Issuance of Debt $ 1,818.0 $ 3,411.0 $ 3,671.0 $ 3,011.0 $ 1,622.0 $ 1,026.0 $ 3,030.0 $ 178.0 $ 617.0 $ 9,979.0 $ 8,193.0
Dividends $ (1,480.0) $ (1,580.0) $ (1,685.0) $ (1,791.0) $ (1,987.0) $ (2,166.0) $ (2,429.0) $ (2,678.0) $ (2,911.0) $ (3,149.0) $ (3,338.0)
Other $ (410.0) $ (2,455.0) $ (4,256.0) $ (3,937.0) $ (2,378.0) $ (1,119.0) $ (1,316.0) $ (2,460.0) $ (2,021.0) $ (5,638.0) $ (5,250.0)

Cash from Financing $ (1,333.0) $ (471.0) $ (2,072.0) $ (2,830.0) $ (3,327.0) $ (3,601.0) $ (2,261.0) $ (6,785.0) $ (6,583.0) $ 973.0 $ (437.0)
Currency Adj $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Change in Cash $ (89.0) $ (37.0) $ 208.0 $ 47.0 $ 260.0 $ 1,102.0 $ 3,345.0 $ (2,006.0) $ (2,261.0) $ - $ -

Free Cash Flow

Cash from Operations $ 3,433.0 $ 3,883.0 $ 3,585.0 $ 4,110.0 $ 4,742.0 $ 5,456.0 $ 5,968.0 $ 6,423.0 $ 5,957.0 $ 7,150.0 $ 7,361.0
Cap Ex $ (863.0) $ (1,069.0) $ (733.0) $ (769.0) $ (851.0) $ (812.0) $ (755.0) $ (899.0) $ (1,407.0) $ (1,648.0) $ (1,927.0)

Free Cash Flow $ 1,825.0 $ 2,154.0 $ 2,217.0 $ 2,679.0 $ 3,005.0 $ 4,385.0 $ 4,985.0 $ 4,905.0 $ 4,489.0 $ 5,496.0 $ 5,411.0
Book Value Per Share #DIV/0! $ 3.83 $ 3.75 $ 4.57 $ 4.75 $ 5.72 $ 6.56 $ 6.83 $ 7.20 $ 9.33 $ 10.14
Company Name ticker

Coca-Cola Co. KO
2/24/2009 User Growth all figures in $Mil

Desired MOS Growth Discount % Price Share Value Buy under Actual D/C % 52Wk High 52Wk Low
User Input Params
50% 14.5% 9.0% $ 43.06 $ 54.75 $ 27.37 21% $61.90 $40.28
Financial Data
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Income Sheet Data
Revenue $ 18,813.0 $ 19,805.0 $ 20,458.0 $ 20,092.0 $ 19,564.0 $ 21,044.0 $ 21,962.0 $ 23,104.0 $ 24,088.0 $ 28,857.0
Gross Profit $ 13,251.0 $ 13,796.0 $ 14,254.0 $ 14,048.0 $ 12,459.0 $ 13,282.0 $ 14,324.0 $ 14,909.0 $ 15,924.0 $ 18,451.0
Operating Income $ 4,967.0 $ 3,982.0 $ 3,691.0 $ 5,352.0 $ 5,458.0 $ 5,221.0 $ 5,698.0 $ 6,085.0 $ 6,308.0 $ 7,252.0
Net Income $ 3,533.0 $ 2,431.0 $ 2,177.0 $ 3,969.0 $ 3,050.0 $ 4,347.0 $ 4,847.0 $ 4,872.0 $ 5,080.0 $ 5,981.0
Diluted EPS $ - $ 1.0 $ 0.9 $ 1.6 $ 1.2 $ 1.8 $ 2.0 $ 2.0 $ 2.2 $ 2.6

Cash Flow Data

Cash from Operations $ 3,433.0 $ 3,883.0 $ 3,585.0 $ 4,110.0 $ 4,742.0 $ 5,456.0 $ 5,968.0 $ 6,423.0 $ 5,957.0 $ 7,150.0
Free Cash Flow $ 1,825.0 $ 2,154.0 $ 2,217.0 $ 2,679.0 $ 3,005.0 $ 4,385.0 $ 4,985.0 $ 4,905.0 $ 4,489.0 $ 5,496.0

Balance Sheet Data

Current Assets $ 6,380.0 $ 6,480.0 $ 6,620.0 $ 7,171.0 $ 7,352.0 $ 8,396.0 $ 12,094.0 $ 10,250.0 $ 8,441.0 $ 12,105.0
Current Liabilities $ 8,640.0 $ 9,856.0 $ 9,321.0 $ 8,429.0 $ 7,341.0 $ 7,886.0 $ 10,971.0 $ 9,836.0 $ 8,890.0 $ 13,225.0
Total Liabilities $ 10,742.0 $ 12,110.0 $ 11,518.0 $ 11,051.0 $ 12,701.0 $ 13,252.0 $ 15,392.0 $ 13,072.0 $ 13,043.0 $ 21,525.0
Tangible Shareholder Equity $ 7,856.0 $ 7,553.0 $ 7,399.0 $ 8,787.0 $ 8,247.0 $ 10,101.0 $ 12,099.0 $ 12,534.0 $ 11,785.0 $ 9,525.0

Margins
Gross Margin 70.4% 69.7% 69.7% 69.9% 63.7% 63.1% 65.2% 64.5% 66.1% 63.9%
Operating Margin 26.4% 20.1% 18.0% 26.6% 27.9% 24.8% 25.9% 26.3% 26.2% 25.1%
Net Margin 18.8% 12.3% 10.6% 19.8% 15.6% 20.7% 22.1% 21.1% 21.1% 20.7%
Current Assets>1.5 times 73.8% 65.7% 71.0% 85.1% 100.1% 106.5% 110.2% 104.2% 94.9% 91.5%

Efficiency & Profitability

CROIC 18.3% 22.0% 23.1% 23.5% 22.1% 28.4% 30.2% 31.1% 28.2% 30.8%
FCF/Sales 9.7% 10.9% 10.8% 13.3% 15.4% 20.8% 22.7% 21.2% 18.6% 19.0%
Inventory Turnover 624.9% 558.5% 582.0% 572.9% 549.1% 620.0% 537.9% 575.5% 497.5% 468.7%
Return On Assets (ROA) 0.0% 11.9% 10.3% 18.4% 13.0% 16.8% 16.5% 16.0% 17.1% 16.3%
Retun On Equity (ROE) 0.0% 27.1% 23.1% 38.4% 26.3% 33.6% 32.3% 30.2% 30.5% 30.9%

Debt Related
Debt to Equity 127.8% 127.3% 123.6% 97.2% 107.6% 94.1% 96.6% 79.9% 77.1% 99.0%
Capitalization Ratio 7.6% 8.2% 8.2% 9.7% 18.6% 15.2% 6.8% 6.6% 7.2% 13.1%
FCF to Debt 17.0% 17.8% 19.2% 24.2% 23.7% 33.1% 32.4% 37.5% 34.4% 25.5%

Multi-Year Performance
1998-2005 1999-2006 2000-2007 1998-2003 1999-2004 2000-2005 2001-2006 2002-2007 Median
Shareholder Equity 6.9% 6.6% 3.7% 5.2% 9.9% 11.1% 6.0% 2.9% 6.3%
Free Cash Flow 15.2% 11.1% 13.8% 19.2% 18.3% 17.2% 10.9% 12.8% 14.5%
CROIC 23.3% 25.8% 28.3% 22.6% 23.3% 25.9% 28.3% 29.3% 25.9%
FCF/Sales 14.3% 17.0% 18.8% 12.1% 14.3% 18.1% 19.7% 19.9% 17.5%
ROA 14.5% 16.3% 16.4% 12.5% 14.8% 16.3% 16.6% 16.4% 16.3%
ROE 28.7% 30.4% 30.7% 26.7% 29.7% 31.2% 31.4% 30.7% 30.5%
Revenue Growth 3.0% 2.8% 5.0% 2.3% 2.1% 2.5% 3.7% 8.1% 2.9%
Gross Margin 67.4% 65.7% 64.9% 69.7% 67.4% 64.9% 64.9% 64.2% 65.3%
Operating Margin 26.1% 26.1% 26.1% 25.6% 25.4% 26.1% 26.3% 26.1% 26.1%
Net Margin 19.3% 20.2% 20.7% 17.2% 17.7% 20.2% 20.9% 20.9% 20.2%
Earnings Growth 0.0% 12.0% 16.5% 0.0% 15.3% 18.3% 6.2% 15.9% 13.6%
Cash from Ops Growth 9.4% 6.3% 10.4% 9.7% 9.0% 12.4% 7.7% 8.6% 9.2%

Projection of future Free Cash Flow

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Growing at 14.5% $ 6,293 $ 7,207 $ 8,252 $8,979.55 $10,152.11 $11,477.79 $12,976.58 $13,369.03 $14,940.21 $16,696.03
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Growing at 3% $ 17,197 $ 17,713 $ 18,244 $ 18,792 $ 19,355 $ 19,936 $ 20,534 $ 21,150 $ 21,785 $ 22,438

Company Valuation Free Cash Flow and Tangible Shareholder Equity Trend
Total Value $ 127,620 $14,000.0 $12,099.0$12,534.0$11,785.0
Shares Outstanding 2331 $12,000.0 FCF Shareholder Equity
$10,101.0
Per Share Value $ 54.75 $9,525.0
$10,000.0 $8,787.0
Margin of Safety 50% $7,856.0 $7,553.0 $7,399.0 $8,247.0
Purchase Price $ 27.37 $8,000.0
Current Price $ 43.06 $6,000.0 $4,985.0 $4,905.0 $4,489.0 $5,496.0
$4,385.0
Actual Discount 21% $4,000.0 $2,679.0 $3,005.0
$1,825.0 $2,154.0 $2,217.0
$2,000.0
$-
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
 Multi-Year Performance Graph
200.0%
Gross Margin Operating Margin Net Margin Earnings Growth ROA ROE

180.0%

160.0% 30.7% 31.2% 30.7%

30.4% 29.7%
31.4%
140.0% 28.7%
16.4% 26.7% 16.3% 16.4%
16.3% 14.8%
16.6%
120.0% 14.5% 12.0% 16.5% 12.5% 15.3% 18.3% 15.9%
0.0% 0.0% 6.2%
19.3% 20.2% 20.7% 17.2% 17.7% 20.2% 20.9% 20.9%
100.0%

80.0% 26.1% 25.6% 25.4%

26.1% 26.1% 26.1% 26.3% 26.1%

60.0%

40.0%
67.4% 65.7% 64.9% 69.7% 67.4% 64.9% 64.9% 64.2%
20.0%

0.0%
1998-2005 1999-2006 2000-2007 1998-2003 1999-2004 2000-2005 2001-2006 2002-2007

Margin Percentages
80.0%
70.4% 69.7% 69.7% 69.9%
70.0% 65.2% 64.5% 66.1% 63.9%
63.7% 63.1%

60.0%
Gross Margin

50.0% Operating Margin

Net Margin
40.0%
26.4% 26.6% 27.9% 25.9% 26.3% 26.2%
30.0% 24.8% 25.1%
20.1% 20.7% 22.1% 21.1% 21.1% 20.7%
18.8% 18.0% 19.8%
20.0% 15.6%
12.3% 10.6%
10.0%

0.0%
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Efficiency & Profitability Debt

45.0%
CROIC FCF/Sales ROA ROE 140.0% Debt to Equity Capitalization Ratio FCF to Debt
40.0%
120.0%
35.0%
100.0%
30.0%

25.0% 80.0%

20.0%
60.0%
15.0%
40.0%
10.0%
20.0%
5.0%

0.0% 0.0%
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Sales, Receivables, Inventory

$35,000.0
Sales Accts Receivable Inventory

$30,000.0

$25,000.0

$20,000.0

$15,000.0

$10,000.0

$5,000.0

$-
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 TTM
Company Name ticker
Coca-Cola Co. KO
2/24/2009 all figures in $Mil
Desired MOS Growth Discount % Price Share Value Buy under Actual D/C % 52Wk High 52Wk Low
50% 14.5% 9% $ 43.06 $ 54.75 $ 27.37 21% $ 61.90 $ 40.28

Historical Stock Price Vs Intrinsic Value Per Share

80

Historical Price Intrinsic Value Buy Price Linear (Historical Price)

70

60

50

40

30

20

10

0
3/9/1998 3/9/1999 3/9/2000 3/9/2001 3/9/2002 3/9/2003 3/9/2004 3/9/2005 3/9/2006 3/9/2007 3/9/2008
Company Name ticker
Coca-Cola Co. KO
2/24/2009 all figures in $Mil

Desired MOS Growth Price Actual DC% Share Value Buy under P/B Ratio Net Net Working Capital
User Input Params
66% 14.5% $ 43.06 47% $ 81.35 $ 27.66 4.62 $ (5.33)

Earnings
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
$ - $ 0.98 $ 0.88 $ 1.60 $ 1.23 $ 1.77 $ 2.00 $ 2.04 $ 2.16 $ 2.57
Diluted EPS
2008 2009 2010 2011
$ 2.85 $ 3.13 $ 3.50 $ 3.86

Multi-Year Performance
1998-2003 1999-2004 2000-2005 2001-2006 2002-2007 1998-2001 1999-2002 2000-2003
Earnings Growth 0.0% 15.3% 18.3% 6.2% 15.9% 0.0% 7.9% 26.2%
EPS Weighted Average $ 1.08 $ 1.41 $ 1.59 $ 1.80 $ 1.96 $ 0.87 $ 1.17 $ 1.37
2001-2004 2002-2005 2003-2006 2004-2007 Median (1998-2007)
Earnings Growth 7.72% 18.37% 6.86% 8.72% 8.3%
EPS Weighted Average $ 1.65 $ 1.76 $ 1.99 $ 2.19 $1.62

Company Stats $3.50

Normal Earnings $ 2.71 EPS $3.13
$3.00 Linear (EPS) $2.85
Expected 5 Year Growth 14.51%
$2.57
20 yr AA Corp Bond Rate 5.94
$2.50
Book Value Per Share 9.33 $2.16
$2.00 $2.04
Price to Book Ratio 4.62 $2.00 $1.77
$1.60
Enterprise Value Per Share 50.45
$1.50 $1.23
$0.98 $0.88
Company Valuation $1.00
Per Share Value $ 81.35
$0.50
Desired MOS 66.00%
$-
Purchase Price $ 27.66 $-
Current Price $ 43.06 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Actual Discount 47%
Company Name ticker
Coca-Cola Co. KO
2/24/2009 Enter Competitor Tickers Into Boxes Below all figures in $Mil
KO PEP Industry Ranking
Stock Price 43.06 51.68 Error Error Error Error NA NA
Market Cap (millions) 99,550 80,430 #VALUE! #VALUE! #VALUE! #VALUE! NA NA

Valuation Ratios
P/E Ratio (TTM) 16.94 15.66 Error Error Error Error 9.27 1
Price to Sales (TTM) 3.05 1.8 Error Error Error Error 0.88 1
Price to Book (MRQ) 4.75 6.38 Error Error Error Error 2.45 2
Price to Tangible Book (MRQ) 12.21 15.24 Error Error Error Error 4.42 2
Price to Cash Flow (TTM) 13.83 11.79 Error Error Error Error 5.44 1
Price to Free Cash Flow (TTM) 32.81 38.8 Error Error Error Error 119.28 2

Dividends
Dividend Yield 3.9 3.39 Error Error Error Error 1.12 1
Dividend Yield - 5 Year Avg. 0 2 Error Error Error Error 1.41 2
Dividend 5 Year Growth Rate 0 21.24 Error Error Error Error 8.09 2
Payout Ratio (TTM) 0 50.36 Error Error Error Error 9.82 2

Growth Rates
Sales (MRQ) vs Qtr. 1 Yr. Ago -2.8 3.1 Error Error Error Error -0.07 2
Sales (TTM) vs TTM 1 Yr. Ago 3.05 1.8 Error Error Error Error 0.88 1
Sales - 5 Yr. Growth Rate 8.9 9.91 Error Error Error Error 7.71 2
EPS (MRQ) vs Qtr. 1 Yr. Ago -17.12 -40.7 Error Error Error Error -59.78 1
EPS (TTM) vs TTM 1 Yr. Ago -3.16 -6.21 Error Error Error Error 0 1
EPS - 5 Yr. Growth Rate 7.08 9.44 Error Error Error Error -12.16 2
Capital Spending - 5 Yr. Growth Rate 19.37 12.71 Error Error Error Error 16.3 1

Financial Strength
Quick Ratio (MRQ) 0.77 0.94 Error Error Error Error 1.69 2
Current Ratio (MRQ) 0.94 1.23 Error Error Error Error 2.09 2
LT Debt to Equity (MRQ) 13.58 64.91 Error Error Error Error 20.05 2
Total Debt to Equity (MRQ) 45.49 67.96 Error Error Error Error 27.92 2

Profitability
Gross Margin (TTM) 64.39 52.95 Error Error Error Error 18.79 1
Gross Margin - 5 Yr. Avg. 64.69 54.92 Error Error Error Error 47.16 1
EBITD Margin (TTM) 30.28 19.47 Error Error Error Error 0 1
EBITD - 5 Yr. Avg. 30.02 21.39 Error Error Error Error 12.91 1
Operating Margin (TTM) 26.44 16.03 Error Error Error Error 6.24 1
Operating Margin - 5 Yr. Avg. 26.04 17.69 Error Error Error Error 9.03 1
Pre-Tax Margin (TTM) 23.29 16.23 Error Error Error Error 5.67 1
Pre-Tax Margin - 5 Yr. Avg. 26.83 18.68 Error Error Error Error 9.1 1
Net Profit Margin (TTM) 18.18 11.89 Error Error Error Error 4.3 1
Net Profit Margin - 5 Yr. Avg. 20.49 13.74 Error Error Error Error 6.32 1

Management Effectiveness
Return On Assets (TTM) 13.86 14.56 Error Error Error Error 3.92 2
Return On Assets - 5 Yr. Avg. 15.82 15.94 Error Error Error Error 6.91 2
Return On Investment (TTM) 20.17 19.02 Error Error Error Error 5.44 1
Return On Investment - 5 Yr Avg 23.22 21.19 Error Error Error Error 9.64 1
Return On Equity (TTM) 27.51 34.77 Error Error Error Error 7.79 2
Return On Equity - 5 Yr. Avg. 30.13 33.86 Error Error Error Error 12.53 2

Efficiency
Revenue/Employee (TTM) 0 218439 Error Error Error Error 51149 NA
Net Income/Employee (TTM) 0 25970 Error Error Error Error 4850 NA
Receivable Turnover (TTM) 9.97 9.54 Error Error Error Error 4.11 NA
Inventory Turnover (TTM) 5.16 8.46 Error Error Error Error 2.68 NA
Asset Turnover (TTM) 0.76 1.22 Error Error Error Error 0.35 2
Company Name ticker
Coca-Cola Co. KO
2/24/2009

Net Profit Margin Cash Flow (Continuing Operations)

21% 21% 22%
21% 21% 20% 7992
18% 18% 7571 7150
16% 6423
5957 5968
5456
12% 4742
11% 4110
3585 3883

TTM 2008/12 2007/12 2006/12 2005/12 2004/12 2003/12 2002/12 2001/12 2000/12 1999/12 TTM 2008/12 2007/12 2006/12 2005/12 2004/12 2003/12 2002/12 2001/12 2000/12 1999/12
18% 18% 21% 21% 21% 22% 21% 16% 20% 11% 12% 7992 7571 7150 5957 6423 5968 5456 4742 4110 3585 3883
% Change -12.3% -1.7% 0.0% -4.5% 6.8% 32.5% -21.1% 85.6% -13.3% -- % Change 5.9% 20.0% -7.3% 7.6% 9.4% 15.1% 15.4% 14.6% -7.7% --

Magic Formula Investing -- Return on Capital Magic Formula Investing -- Earnings Yield

0.96 9.7%
8.9%
0.76 0.76 0.79 8.2%
0.71 0.74 7.0% 7.4% 7.2%
0.66 0.66 0.66 0.63 6.1% 6.7%
0.51 5.5%
3.6% 3.8%

Now 2008/12 2007/12 2006/12 2005/12 2004/12 2003/12 2002/12 2001/12 2000/12 1999/12 Now 2008/12 2007/12 2006/12 2005/12 2004/12 2003/12 2002/12 2001/12 2000/12 1999/12
0.71 0.66 0.66 0.76 0.66 0.51 0.63 0.76 0.96 0.74 0.79 9.7% 8.9% 6.1% 7.0% 8.2% 7.4% 5.5% 7.2% 6.7% 3.6% 3.8%
% Change 0.6% -13.9% 14.8% 29.7% -19.1% -16.5% -21.3% 30.8% -6.2% -- % Change 44.2% -11.8% -14.6% 10.1% 34.9% -23.4% 7.3% 85.5% -4.9% --

Return on Assets (ROA) Return on Equity (ROE)

17% 18% 33.7% 35.0%
17% 16% 16%
16% 30.0% 29.8% 30.4% 30.9%
14% 27.5%
25.6%
11% 23.4%
10%

0% 0% 0.0% 0.0%
2008/12 2008/12 2007/12 2006/12 2005/12 2004/12 2003/12 2002/12 2001/12 2000/12 1999/12 2008/12 2008/12 2007/12 2006/12 2005/12 2004/12 2003/12 2002/12 2001/12 2000/12 1999/12
0% 0% 14% 17% 17% 16% 16% 16% 18% 10% 11% 0.0% 0.0% 27.5% 30.0% 29.8% 30.4% 30.9% 33.7% 35.0% 23.4% 25.6%
% Change -100.0% -18.8% 2.4% 7.1% -2.5% -1.9% -8.5% 70.2% -7.1% -- % Change -100.0% -8.3% 0.7% -2.0% -1.6% -8.3% -3.7% 49.6% -8.6% --

Current Ratio Quick Ratio

1.0 1.1 1.1

0.9 0.9 0.9 1.0 1.0
0.9 0.9 0.9 0.9
0.8 0.8 0.8 0.8
0.7 0.7 0.7
0.7
0.6 0.5

2008/12 2008/12 2007/12 2006/12 2005/12 2004/12 2003/12 2002/12 2001/12 2000/12 1999/12 2008/12 2008/12 2007/12 2006/12 2005/12 2004/12 2003/12 2002/12 2001/12 2000/12 1999/12
0.9 0.9 0.9 0.9 1.0 1.1 1.1 1.0 0.9 0.7 0.7 0.8 0.8 0.7 0.8 0.9 1.0 0.9 0.8 0.7 0.6 0.5
% Change 2.4% -3.6% -8.9% -5.5% 3.5% 6.3% 17.7% 19.8% 8.0% -- % Change 2.9% -2.3% -14.8% -7.8% 7.4% 9.8% 13.7% 21.8% 8.7% --
Company Name ticker
Coca-Cola Co. KO
2/24/2009

Company Assessment: Quantitative

Valuation Criteria over 10yrs Value Points User Points

> 25% or 50% depending on
DCF Valuation Discount 21% 1 1
moat
Graham Intrinsic Value Discount > 66% 47% 1 1

Margins, Profit and Growth Criteria over 10yrs Value Points User Points
Median Revenue growth 10% 2.9% 0
Median Gross Margin 30% 65.3% 2
Median Operating Margin 15% 26.1% 1
Median Net Margin 10% 20.2% 2
Median EPS growth 10% 8.3% 0

Business and Management Performance Criteria over 10yrs Value Points User Points
Cash growth from Operations 15% 9.2% 0
CROIC is postive and capable of paying off financing 13% 25.9% 2
Median FCF growth positive and consistent 10% 14.5% 1
Median FCF/Sales 7% 17.5% 2
Consistent ROE (manually check) Consistent over 10yrs N/A N/A
Consistent ROA (manually check) Consistent over 10yrs N/A N/A

Balance Sheet Criteria for TTM Value Points User Points

Current assets > 1.5 x current liabilities > 1.5 x current liabilities 0.9 1 1
Price to Book ratio < 2 N/A 4.62 N/A N/A
Debt to Equity < 100% 99.0% 1
FCF to Debt > 10% 25.5% 2
Capitalization Ratio < 30% 13% 2
Intangibles % of assets < 15% of assets 26.5% 1 1

Company Assessment: Qualitative

The Coca-Cola Company is a manufacturer, distributor and marketer of nonalcoholic beverage concentrates and syrups in the world.
Finished beverage products bearing its trademarks are sold in more than 200 countries. The Company markets nonalcoholic sparkling
brands, which includes Diet Coke, Fanta and Sprite. Its business is nonalcoholic beverages, principally sparkling beverages, but also a
variety of still beverages. The Company manufactures beverage concentrates and syrups, which it sells to bottling and canning
operations, fountain wholesalers and some fountain retailers, as well as finished beverages, which it sells primarily to distributors. The
Company owns or licenses more than 450 brands, including diet and light beverages, waters, enhanced waters, juices and juice drinks,
teas, coffees, and energy and sports drinks.

Competitive Advantage Comment User Points Max Points

Stable market share? 2 max 2
Dominant company in industry, segment? 2 max 2
Low barriers to entry and exit? 2 max 2
Experience goods (brand effect, trademarks) 2 max 2
High switching costs? 1 max 2
Network effect? E.g. eBay 1 max 2

Business Model Comment User Points Max Points

Growth due to:
a) No
a) existing product / existing market (yes/no)
b) Yes
b) existing product / new market (yes/no) 1 max 2
c) Yes
c) new product / existing market (yes/no)
d) Yes
d) new product / new market (yes/no)

Able to increase prices and retain customers? 1 max 1

Compete on price? (1 for no, 0 for yes) 1 max 1
Barriers of entry to the business? 1 max 1
Diverse customers? (1 for diverse, 0 for concentrated) 1 max 1
Involved in competition? Monopoly, duopoly, crowded 2 max 2
Company has a recurring revenue stream? 1 max 1
Capital intensive company? (1 for no, 0 for yes) 1 max 1
Management Comment User Points Max Points
High insider ownership? 1 max 1
Candid management on positives and negatives? 1 max 1
Management performance at previous jobs? 1 max 1
Compensation levels compared to sales? 1 max 1

Industry Comment User Points Max Points

Boring industry? (1 for slow, 0 for fast industry) 1 max 1
Can company adapt to changing industry environment? 1 max 1
Industry leader or lagger? (1 for leader, 0 for lagger) 1 max 1

Psychological Factors to Consider. Not Weighted. Comment

Recency bias? no
Hindsight bias? no
Framing issues correctly and in different manners? DCF, graham, compare to peers
Is there a data framing bias? maybe
Am I too overconfident on the situation? no
Performed probability analysis for -ve factors? no
Too much loss aversion? no
Sunk cost mentality? no
Slow in changing opinion? no
Psychological denial ? no
Bias from commitment and consistency tendency? no
Pavlovian association? no
Social proof bias? no
Status quo bias? no
False consensus bais? no

Category Total Points out of 5

Valuation 2.0
Margins, Profit and Growth 2.5
Business and Management Performance 2.5
Balance Sheet 3.5
Competitive Advantage 4.2
Business Model 4.5
Management 5.0

Low Risk High Growth Under Valued Well Managed Good Financial Health Strong Moat
3.0 2.5 2.0 4.8 3.5 4.2

Low Risk
5.0

4.0

3.0
Strong Moat High Growth
2.0

1.0

0.0

Good Financial Health Under Valued

Well Managed