Company Name

ticker

The Coca-Cola Company in 1988

KO

7/17/2007

all figures in $Mil except per share data and percentages

1978
Balance Sheet Data
Current Liabilities
Total Liabilities
Shareholder Equity
Cash Flow Data
Free Cash Flow
Management
CROIC

Shareholder Equity
Free Cash Flow
CROIC

1979

1980

Financial Data
1982
1983

1981

1984

1985

1986

1987

$
$
$

744
843
1,740

$
$
$

884
1,019
1,919

$
$
$

1,062
1,331
2,075

$
$
$

1,006
1,294
2,271

$
$
$

1,327
2,145
2,779

$
$
$

1,391
2,307
2,921

$
$
$

2,023
3,180
2,778

$
$
$

2,004
3,919
2,979

$
$
$

852
4,196
3,479

$
$
$

2,086
5,419
3,187

139

119

238

243

265

346

448

440

739

764

7.56%

5.79%

10.15%

9.50%

7.37%

9.02%

11.38%

8.99%

10.83%

Multi-Year Performance
1978-1985 1979-1986 1980-1987 1978-1983 1979-1984 1980-1985 1981-1986 1982-1987
8.0%
8.9%
6.3%
10.9%
7.7%
7.5%
8.9%
2.8%
17.9%
29.8%
18.1%
20.0%
30.4%
13.1%
24.9%
23.6%
9.0%
9.5%
9.5%
9.0%
9.5%
9.0%
9.0%
10.8%

Growing at 21.8%

Growing at 5%

1988
931
1998
5,763

$
$

1989
1,133
1999
6,051

$
$

1990
1,380
2000
6,354

$
$

Projection of future Free Cash Flow

1991
1992
1993
1994
1,681 $
2,048 $
2,494 $
3,038
2001
2002
2003
2004
6,672 $
7,005 $
7,355 $
7,723

Company Valuation
$ 22,318
Total Value
$ 59.16
Per Share Value
25%
Desired Discount
$ 44.37
Target Purchase Price
$ 35.00 - $ 45.25
1988 Price Range
23.5% to 40.8%
Actual Discount
www.FWallStreet.com
Chart Legend
Shareholder Equity
Free Cash Flow

$
$

1995
3,700
2005
8,109

Median
7.8%
21.8%
9.3%

$
$

Free Cash Flow and Shareholder Equity Trend

$4,000
$3,500
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$-

11.72%

1996
4,506
2006
8,515

$
$

1997
5,489
2007
8,941