Trading Comps - Model 1: Free Tutorial and Video

Delve into the intricate process of calculating and interpreting value drivers and multiples statistics for major corporations like Coca-Cola, Monster Beverage Corporation, and PepsiCo. Gain insight on how these calculations are used to determine enterprise value and the implied EV range.

Key Insights

Three major companies, Coca-Cola, Monster Beverage Corporation, and PepsiCo, were analyzed for their share price, market cap (equity value), and enterprise value.
Value drivers such as Sales, EBITDA, EBIT, and EPS were calculated for each of these companies to help ascertain their worth.
Multiples statistics were calculated for a comprehensive understanding of the company's valuation.
The valuation of Coca-Cola was found to be in line with its peer group based on these calculations.
An implied enterprise value (EV) was calculated using EBITDA and the EV / LTM EBITDA ratio.
The implied EV range for Coca-Cola was found to be from $204B to $307B, providing a broad perspective on the company's potential value.

Explore our in-depth analysis of the financials and value drivers of three major beverage companies: Coca-Cola, Monster Beverage Corporation, and PepsiCo, with a specific focus on interpreting multiples statistics and implied enterprise value.

We have three comparable companies: Coca-Cola, Monster Beverage Corporation, and PepsiCo.

We calculated share price, market cap (equity value), and enterprise value for each company.

We also calculated value drivers such as Sales, EBITDA, EBIT, and EPS.

Let’s calculate multiples statistics:

E13==$D6/E6

Financial Modeling Bootcamp: Live & Hands-on, In NYC or Online, Learn From Experts, Free Retake, Small Class Sizes, 1-on-1 Bonus Training. Named a Top Bootcamp by Forbes, Fortune, & Time Out. Noble Desktop. Learn More.

I13=$D6/I6

M13=$D6/M6

Q13=$B6/Q6

Coca-Cola is just along the lines with its peer group.

From here we can interpret the outputs. The most convenient way is to put the highest and lowest multiples together with the mean and the company we are valuing.

E20=MAX(E14:E17)

E21=MIN(E14:E17)

E22=AVERAGE(E14:E17)

E23=E14

EBITDA of Coca-Cola: F26=H6

EV / LTM EBITDA: Max=F28=H20; Min=G28=H21; Mean=H28=H22

Implied EV = f29=F28*$F$26

Implied EV range is from $204B to $307B.

Screenshot of an Excel workbook titled 'Comparable Company Analysis Output' displaying financial metrics, multiples, and valuation figures for various companies in a tabular format.

How to Learn Financial Modeling