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title: "Is Coca-Cola Stock a Good Buy in 2026? Full KO Analysis (Graham Number, Dividends, Moat)" description: "Is Coca-Cola stock a good buy right now? We run the Graham Number, calculate intrinsic value, analyze 64 years of dividends, and give you an honest bull/bear case for KO in 2026." keywords: ["is Coca-Cola stock a good buy", "KO stock good buy", "Coca-Cola stock analysis 2026", "KO stock buy or sell", "Coca-Cola dividend", "KO intrinsic value", "Coca-Cola Graham Number", "should I buy Coca-Cola stock"] date: "2026-03-06" category: "Stock Analysis" author: "Harper Banks"

Is Coca-Cola (KO) Stock a Good Buy in 2026?

Warren Buffett bought Coca-Cola in 1988. He has never sold a single share.

Thirty-eight years later, Berkshire Hathaway's 400 million shares generate over $800 million per year in dividend income — from a position that originally cost $1.3 billion. That's a 60%+ yield on his original investment.

But Buffett bought at different prices. In different market conditions. The question isn't whether KO was a good buy in 1988. The question is:

Is Coca-Cola stock a good buy right now, at $77.03, in March 2026?

Let's run every number and find out.

Disclaimer: This is not financial advice. All investments carry risk, including the potential loss of principal. Do your own research or consult a financial advisor before making investment decisions.

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Coca-Cola at a Glance: Key Metrics

| Metric | Value | |--------|-------| | Stock Price | $77.03 | | Market Cap | ~$332B | | Revenue (FY 2025) | $47.94B | | Net Income (FY 2025) | $13.11B | | EPS (Diluted) | $3.04 | | P/E Ratio | 25.69 | | Forward P/E | ~23.5 | | Dividend Per Share | $2.12 | | Dividend Yield | 2.75% | | Payout Ratio | 67.76% | | Book Value Per Share | $7.46 | | Free Cash Flow Per Share | $1.23 | | Consecutive Years of Dividend Growth | 64 |

Data sourced from StockAnalysis.com as of March 5-6, 2026.

→ View live KO data on our ticker page

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Test #1: The Graham Number

The Graham Number gives us the maximum price a value investor should pay, based on earnings and book value.

Graham Number = √(22.5 × EPS × Book Value Per Share)

Graham Number = √(22.5 × 3.04 × 7.46)
Graham Number = √(22.5 × 22.68)
Graham Number = √(510.30)
Graham Number = $22.59

Result: The Graham Number for Coca-Cola is $22.59.

The stock trades at $77.03 — that's 3.4x the Graham Number.

By this metric alone, KO is dramatically overvalued. But wait — there's important context.

Why KO Fails the Graham Number Test

The Graham Number uses book value per share, and Coca-Cola's book value is only $7.46. That's because KO has repurchased billions in stock over decades and carries significant intangible assets (brand value, distribution rights) that don't show up on the balance sheet.

Coca-Cola's brand alone was valued at $35 billion by Interbrand in 2025. That value isn't in the book value number.

Bottom line: The Graham Number is too conservative for asset-light, brand-heavy companies like Coca-Cola. It's useful for screening, but it shouldn't be the final word here.

→ Calculate Graham Number for any stock

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Test #2: Graham Intrinsic Value Formula

This accounts for growth and interest rates — a more nuanced tool.

V = EPS × (8.5 + 2g) × 4.4 / Y

Using:

• EPS: $3.04
• Growth rate (g): 5% (conservative for a mature Dividend King)
• AAA bond yield (Y): 5.0%

V = 3.04 × (8.5 + 10) × 4.4 / 5.0
V = 3.04 × 18.5 × 0.88
V = $49.49

Result: Graham's intrinsic value formula values KO at $49.49. The stock trades at $77.03 — a 55.6% premium.

Even with a more generous 7% growth assumption:

V = 3.04 × (8.5 + 14) × 0.88
V = 3.04 × 22.5 × 0.88
V = $60.19

Still below the current price.

What this means: By strict Graham standards, Coca-Cola is overvalued. The market is paying a significant premium for KO's quality, predictability, and dividend track record — a premium that Graham wouldn't pay, but Buffett clearly would.

→ Full guide: Benjamin Graham Intrinsic Value Formula explained

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Test #3: PE Ratio Analysis

KO's trailing PE of 25.69 needs context:

| Comparison | PE | |-----------|-----| | KO current | 25.69 | | KO 5-year average | ~24-26 | | Consumer Staples sector average | ~22-25 | | S&P 500 average | ~27-28 | | PepsiCo (PEP) | ~20.78 |

KO trades at the high end of its historical range and slightly above the consumer staples sector average. Compared to the broader market, it's actually below the S&P 500's PE.

Interesting comparison: PepsiCo trades at a lower PE (~20.78) despite similar business quality. KO commands a Buffett premium.

→ PE Ratio Explained: A Simple Guide

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Test #4: Dividend Analysis

This is where Coca-Cola truly shines.

64 Years of Consecutive Dividend Increases

Coca-Cola is a Dividend King — a company that has raised its dividend for 50+ years straight. Only about 50 companies in the entire market can claim this.

| Year | Annual Dividend | Yield at 2006 Price (~$20) | |------|----------------|---------------------------| | 2021 | $1.68 | 8.4% | | 2022 | $1.76 | 8.8% | | 2023 | $1.84 | 9.2% | | 2024 | $1.94 | 9.7% | | 2025 | $2.04 | 10.2% | | 2026 | $2.12 | 10.6% |

If you bought KO 20 years ago at ~$20/share, you're now earning a 10.6% yield on your original cost. Every year.

Dividend Safety

• Payout ratio: 67.76% — Well within safe territory. KO earns $3.04/share and pays out $2.12. Plenty of room to keep growing the dividend.
• Dividend growth rate: ~5% annually — Consistent, predictable increases. Not explosive, but relentless.
• Free cash flow coverage: FCF per share of $1.23 is actually below the dividend per share of $2.12. This is a yellow flag — but Coca-Cola's FCF was depressed in FY 2025 compared to prior years (FY 2023 FCF was $2.25/share). It's worth monitoring.

What $10,000 in KO Generates

If you invest $10,000 in KO today at $77.03:

• Shares purchased: ~129.8
• Annual dividend income: $275.33
• Monthly income: $22.94
• In 10 years (at 5% growth): ~$448/year ($37/month)
• In 20 years: ~$730/year ($61/month)

Not life-changing on its own. But as part of a diversified dividend portfolio, KO is the anchor that never breaks.

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Test #5: The Moat

Warren Buffett's favorite concept. Does Coca-Cola have a sustainable competitive advantage?

Brand Power

Coca-Cola is consumed 2.2 billion times per day across 200+ countries. The brand alone is worth $35 billion. No competitor can replicate 130+ years of brand building.

Distribution Network

Coca-Cola doesn't just sell drinks — it has the largest beverage distribution network on earth. Partnered with bottlers worldwide, it can get a product into a remote village in Africa and a vending machine in Tokyo. This network is essentially unreplicable.

Pricing Power

When Coca-Cola raises prices 3-5%, consumers grumble but keep buying. That's pricing power — and it's the ultimate inflation hedge. Revenue grew from $38.7B (2021) to $47.9B (2025) largely through pricing.

Portfolio Diversification

Beyond Coke: Sprite, Fanta, Minute Maid, Dasani, Powerade, Costa Coffee, Topo Chico, Fairlife Milk, BodyArmor. They own or license 200+ brands across water, juice, sports drinks, tea, and coffee.

Moat rating: Wide. As wide as it gets. This business isn't going anywhere.

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The Bull Case for Coca-Cola

1. Unshakeable dividend track record. 64 years of increases. If you need income reliability, there's nothing better.
2. Global exposure. 80%+ of revenue comes from outside the U.S. As emerging market middle classes grow, consumption follows.
3. Inflation hedge. Pricing power means revenue grows with (or ahead of) inflation.
4. Low volatility. Beta of 0.57 — KO moves about half as much as the market. In crashes, it holds up better than most.
5. Buffett's continued confidence. Berkshire still holds 400 million shares. That's a $31B+ endorsement.

The Bear Case for Coca-Cola

1. Overvalued by Graham standards. At 25.69x earnings and 3.4x its Graham Number, you're paying a steep premium for quality.
2. Slow growth. Revenue grew 1.87% in FY 2025. EPS grew nicely (23.6%), but that was partly from a weak prior year. Sustainable growth is 5-7%.
3. Health trends. Sugar-sweetened beverages face increasing regulatory and consumer headwinds. GLP-1 weight loss drugs may reduce consumption long-term.
4. FCF pressure. Free cash flow per share dropped from $2.25 (2023) to $1.23 (2025). That needs to recover.
5. Currency risk. With 80%+ international revenue, a strong dollar reduces earnings when converted back to USD.
6. Better value elsewhere. PepsiCo trades at a lower PE with similar quality. Why pay more for KO?

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So... Is KO a Good Buy?

Here's my honest assessment:

At $77 — It's a HOLD, not a BUY

Coca-Cola is one of the finest businesses ever built. The brand is untouchable. The dividend is as close to guaranteed as anything in the stock market. If you already own KO, keep it — there's no reason to sell a Dividend King.

But at $77 and 25.7x earnings, new money isn't getting a bargain. You're paying full price for quality. Graham wouldn't buy here. Even Buffett bought at much lower valuations relative to earnings.

I'd Consider Buying Below $65

At $65, the PE drops to roughly 21.4x — closer to the sector average and KO's own historical floor. The dividend yield would jump to 3.26%. That's when the math starts looking attractive for new positions.

Already Own It? DRIP and Hold

If you bought KO years ago, your yield on cost is probably much higher than 2.75%. Keep reinvesting dividends. This is a 30-year hold, not a trade.

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The Bottom Line

Coca-Cola is a great company at a fair-to-expensive price. It's not overvalued enough to avoid entirely, but it's not cheap enough to back up the truck.

The smart play: add KO to your watchlist, set a price alert at $65, and buy if the market gives you a pullback. In the meantime, there are dividend stocks with better valuations available today.

For 64 years, Coca-Cola has raised its dividend through wars, recessions, pandemics, and market crashes. That track record earns patience. Wait for your price, and when it comes — buy aggressively.

→ Check KO's live Graham Number and valuation → View our full Dividend Kings list → Learn how to build a dividend portfolio from $1,000

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All stock data sourced from StockAnalysis.com as of March 5-6, 2026. Stock prices, earnings, and dividends change daily. This analysis reflects a specific moment in time and should be verified before making any investment decisions. This article is for educational purposes only and should not be considered financial advice.