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  • December 2012
  • Case
  • HBS Case Collection

Coca-Cola: Residual Income Valuation

By: Suraj Srinivasan, Beiting Cheng and Edward J. Riedl
  • Format:Print
  • | Language:English
  • | Pages:4
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Abstract

The case illustrates the use of the residual income (also known as the abnormal earnings) valuation approach. Students are asked to provide a valuation of Coca-Cola Company using the residual income valuation methodology and understand how it maps into the discounted cash flow method. Students learn how forecasts of sales, performance, dividends, and other valuation inputs feeds into a valuation model. Students also learn the modified Dupont decomposition technique and how to reclassify financial statements to perform the modified Dupont analysis.

Keywords

Business Earnings; Valuation; Financial Statements; Equity; Food and Beverage Industry

Citation

Srinivasan, Suraj, Beiting Cheng, and Edward J. Riedl. "Coca-Cola: Residual Income Valuation." Harvard Business School Case 113-056, December 2012.
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About The Author

Suraj Srinivasan

Accounting and Management
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Related Work

    • April 2013
    • Faculty Research

    Coca Cola Valuation Spreadsheet (CW)

    By: Suraj Srinivasan
    • April 2013
    • Faculty Research

    Coca Cola Valuation Spreadsheet for Students (CW)

    By: Suraj Srinivasan
    • May 2013
    • Faculty Research

    Coca-Cola: Residual Income Valuation

    By: Suraj Srinivasan and Edward J. Riedl
Related Work
  • Coca Cola Valuation Spreadsheet (CW) By: Suraj Srinivasan
  • Coca Cola Valuation Spreadsheet for Students (CW) By: Suraj Srinivasan
  • Coca-Cola: Residual Income Valuation By: Suraj Srinivasan and Edward J. Riedl
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