Coca-Cola Performance Suffering From Chronic Overvaluation

Even though Coca-Cola has produced an exemplary record of earnings growth and accompanying dividend increases, shareholder performance has suffered since calendar year 1998 due to their shares trading at an excessive valuation. Therefore, even with earnings consistently growing, Coca-Cola’s share price had nowhere to go but down based on fundamentals. By late February 2009, Coca-Cola’s share price has once again become aligned with its earnings justified valuation level.

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