FAST Graph for your enjoyment:
As you can see from the charts above, the PE for KO never gets much lower than 20. KO is not undervalued today, but it rarely is. I'd say its trading at a "normal" multiple, and should give steady growth in share price and dividends dang near forever ;-) Buy it, then forget about it.
** See the nice write up below from Paul Price on Coke (one day after my post above). Great minds think alike I suppose.....
Buying a Coke for the Value Portfolio
Market Shadows’ Virtual Value Portfolio pulled the trigger and purchased 107 shares of beverage giant Coca-Cola (KO) this morning at $37.27 per share.
The $3,988 investment amount came out of our cash reserve fund.
KO is a conservative position with a greater than 3% dividend yield. We expect to see an increased payout announcement in the near future.
Risk appears low as the absoulte and relative Price to earnings ratios are both near the low points of the past 15 – 20 years. While the company’s rate of growth has slowed, its fundamentals have never been stronger.