Comparing P-E ratio of Coca-Cola Co with major competitor

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For this question we will be using P/E ratio.

Coca-Cola P/E Ratio = 26.32

Competitors:

Dr. Pepper P/E Ratio = 36.68

Pepsi P/E Ratio = 28.27

Question 1: Comparing the P/E ratio of Coca-Cola Co with major competitors. Is there a difference between these numbers? Is the stock overvalued, undervalued, or properly valued? Why? is it reasonable to buy the stock?

Reference no: EM132462245

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