**The Coca-Cola Company**
*Coca-Cola:* ROI 12%

Projected Growth Rate: 13% for 20 years

*This estimate is less than the 15% growth of the last ten years, and is comparable to the 13% growth of the last twenty years and the 13% growth of the last thirty years.*

Projected EPS: $17 in 2019

*This estimate is based on $1.50 in earnings per share in the next twelve months with growth of 13% per year for 20 years.*

P/E Multiple: 30x

*This estimate assumes that the average stock, as represented by the S&P500 Index, will sell at 18x earnings. Therefore, at 30x, Coca-Cola is projected to sell at a 2/3 premium to the S&P500 P/E multiple — if anything, this is a conservative assumption since Coca-Cola is not just a better than average company, it is a *much* better company.*

Projected Price: 510 in 2019

*$17 in earnings per share times a P/E multiple of 30*

Current Price: 64

Projected Capital Gain: 11% annually over twenty years

Dividend Yield: 1%

*Current dividend of $.65 divided into the current stock price*

Projected ROI: 12% over twenty years

**The S&P500 Index**

*S&P500 Index:* ROI 8%

Projected Growth Rate: 8% for 20 years

*This estimate is based on an assumption of 3% economic growth plus 2% productivity growth plus 3% inflation; 8% has been the historical growth rate, as well.*

Projected EPS: $240 in 2019

*This estimate is based on $52 in earnings per share in the next year with growth of 8% per year for 20 years.*

P/E Multiple: 18x

*This estimate — that the average stock, as represented by the S&P500 Index, will sell at 18x earnings — is based on past history and current interest rates.*

Projected Price: 4320 in 2019

*$240 in earnings per share times a P/E multiple of 18*

Current Price: 1400

Projected Capital Gain: 6% annually over twenty years

Dividend Yield: 2%

*Current dividend yield of the S&P500*

Projected ROI: 8%

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