Valuation of Coca Cola Amatil

This is actually a students assignment. But I think it could be useful to anyone interested in Coca Cola.  Coca-Cola Amatil (ASX: CCL) is the one of the biggest non-alcoholic beverage companies in the Asia- Pacific region and listed in Australian Securities Exchange. The company operates and manufactures in Australia, New Zealand, Indonesia, and PNG with a variety of product lines and brands (Coca-Cola Amatil 2013).

The purpose of this report is to value the CCL and provide the 12-month rating. We provide a “HOLD” recommendation for investors with $13.4 target price, whereby a profound evaluation of company performance under current industry and economic circumstances.

Firstly, macro

economic background, industry environment and SWOT analysis are conducted to make key assumptions in forecasting the future performance of company. With that valuable information, pro-forma statement for 5 years is modelled using sales driven model and developed by reflecting the inside operating and financial condition. To determine the short to medium and terminal growth rate, several variables are considered including real economic, population, generic growth, risks, and operating performance in 4 countries. To assess the CCL’s value comparing to peer companies, 3 companies are selected based on industry sector and financial performance, and appropriate multiples are used. Lastly, sensitivity and scenario analysis are used to examine which variables affect on terminal growth and WACC of CCL and how variable changes the company’s value within 4 scenario cases.

See full report here  FINC6021GroupAssignment2013S1