Yesterday, Coca-Cola reported its third quarter financial results. Sales came in under the street estimates and the Company announced a $3 billion cost-cutting plan. We take a look at Coca-Cola to highlight that their financial performance metrics have been decreasing for some time. 
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Coca-Cola currently trades at a 16% premium to its intrinsic value. This reflects the regular decrease of its return on capital over the last 5 years (from 19.2% in September 2010 to 11.8% in September 2014). A decrease in over 40% of EVA in the last 3 years also reflects the challenges that Coca-Cola has been facing. For now, Coca-Cola continues to trade within its historical FGV/Market value range. FGV has remained relatively stable in light of the decline of these other metrics.
One bright spot in Coca-Cola’s latest quarter remains the acquisition of the 16.7% stake in Monster Beverage.
