Reasons why Coca-Cola is a Great CompanyCoca-Cola Company (The)BATS:KOCapitalist_ZachI'm going to do a deep dive into why I think Coca Cola is a great stock to buy and hold, or trade whatever really you want to do with it is up to you. I hope you enjoy my idea, I always start off my ideas discussing the intrinsic value of the stock in question as that is a very fundamentally important aspect of buying stocks! I prefer the dividend discount model because it assumes a 28% upside! However I did account for the discounted cash flow as well which represents an upside of 12% which I think is more reasonable to expect this year. Overall I would like to think this company will be worth at least $77 sometime this year or next. Coca Cola has made significant capital investments in their business over the last few years. These investments support growth by funding projects like expanding its bottling operations and placing more cold-drink equipment in outlets worldwide to drive sales. Historically, Coca-Cola has acquired other beverage companies to diversify its portfolio, although it also focuses on inorganic growth through other opportunities. In 2024, the company made progress toward refranchising some of its company-owned bottling operations to shift towards a more asset-light model. The company has a great track record of returning capital to its shareholders. Coca-Cola has a long history of paying and growing dividends, having increased its dividend for 62 consecutive years. In 2024, it paid out $8.4 billion in dividends. The company repurchases its own shares to return capital to shareholders, with net share repurchases of $1.1 billion in 2024. Coca-Cola manages a mix of debt and equity to finance its operations, with debt representing approximately 37.5% and cash and equivalents making up about 15.0% of its total capital in a recent analysis. This balanced approach is used to support growth while managing financial risk and optimizing overall performance. Coca-Cola focuses on producing and marketing high-margin beverage concentrates, while largely outsourcing the capital-intensive bottling and distribution processes to partners. This efficient model helps maintain high profit margins and financial resilience. In essence, Coca-Cola acts as an anchor in a diversified portfolio, providing stability and downside protection when other growth-oriented investments may be struggling.