The Pepsi company has a price-to-earning ratio of about 30 with earnings of about $3.40 per share.

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The Pepsi company has a price-to-earning ratio of about 30 with earnings of about $3.40 per share. It currently trades at about $100/share. The Coca-Cola company has a price-to-earnings ratio of about 19 and makes about $2.50/share in earnings.

If Pepsi's valuation is correct, what can we infer about the valuation of Coca-Cola?

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Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

ISBN: 978-1337614689

9th edition

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

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Posted Date: Jun 22, 2023 04:33 AM

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The Pepsi company has a price-to-earning ratio of about 30 with earnings of about $3.40 per share.

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To infer the valuation of CocaCola based on the provided information we can use the concept of price... View the full answer

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

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