Coca-Cola FEMSA, S.A.B. de C.V.

COCSF ·Consumer Defensive, Beverages - Non-Alcoholic, Mexico
Valuation › AI Valuation

AI Valuation

AI-generated fair value estimate for this company.

AI Fair Value $111.61
Market Price $10.61
Undervalued By 90.5%

Method: 10-year unlevered FCF DCF (on the underlying Coca-Cola FEMSA business, whose NYSE ADR trades as KOF; COCSF is the OTC line on the same equity): FCF base ≈$1.1627B (LTM net income of Mex$23.9B x 90% FCF-conversion ratio typical for a mature bottler where capex roughly offsets D&A, converted at an assumed MXN/USD of 18.5); 6% annual FCF growth years 1-5; 4% years 6-10; 8% discount rate; 3% terminal growth; $5.11B gross debt (used as a net-debt proxy); ~207.75M ADS-equivalent shares (derived from market cap ÷ price).

Reasoning: Coca-Cola FEMSA is the world's largest Coca-Cola bottler with a long, stable history of mid-to-high-single-digit revenue growth and a durable franchise/distribution moat, making a standard unlevered FCF DCF with a low-single-digit-cost-of-capital discount rate the most appropriate method for this mature, profitable, cash-generative business.