Now that we've got the enterprise value, we just need the EBITDA to get us down to the EV EBITDA calculation.

But for the ebitda, we're going to have to do a bit of work.

We're firstly going to start off with the company's adjusted operating profit.

After that, we'll see if there are any adjustments we want to make ourselves to get down to a cleaned EBIT.

Then we'll add back depreciation and amortization to get to ebitda.

But that will be just the annual set of accounts.

I want to get to the last 12 months number, which means we need to subtract off the old 10 Q or the old quarterly information and add on the new 10 Q or quarterly information, and that would give us the most recent or last 12 months.

So let's go and find Coca-Cola's adjusted operating profits.

Let's go to Felix. Here we are in Felix.

I'm looking at the Coca-Cola page.

I'm on the categorized tab, and I'm gonna start with their annual set of accounts, their 10 k.

Now, for operating profit, you'd think I'd go to the income statement to grab that operating profit figure, but many large companies will provide a PR or press release that goes along with the 10 K.

This provides a very handy source of an adjusted operating profit IE where Coca-Cola have cleaned operating profit for us.

So if I click on the PR, opens up a new sheets, I'm going to scroll down to where I can find it, and I'm on page 23 and I can see that I've got a reported net operating revenue figure, 47,000.

Then you've got gross profit.

And if we go to the right hand side here, here's the operating income.

Fantastic. We can see all of the things that Coca-Cola have added back or adjusted or cleaned out, and they've got themselves down to an operating income figure of 14,085.

I'm going to save that, and then I'm going to paste that into my Excel and I can see that it's created the hyperlink that will enable me to click and find out where this number came from, if I can't remember in a week's time.

But I then want to ask myself, are there any other adjustments I want to make or any adjustments of Coca-Colas that I want to reverse out? Well, if we just investigate all of theirs, I can see that they've got asset impairments.

Yep, I'm fine with that.

Transaction gains and losses, I've got no problem with that at all. Other items restructuring, I'm happy.

So my further adjustment is going to be zero and my EBIT, I'll sum those two items above.

Next, I need the annual depreciation and amortization.

So I'll go back 10 K.

So I could go to this cashflow statement. Quick link here, depreciation and amortization.

December 24, 1,075.

I'd love to link to the original figures.

So again, I'm gonna open up the 10 K.

I'll then go to sections in the top left hand corner.

There it is. Go down to statements of cash flow.

There's my depreciation and amortization.

I'm going to double click and save on that Past it in sum of the two items above.

And now I've got my EBIT DT for the annual years.

I now just need to do exactly the same for the old 10 Q and the new 10 Q.

I'll find both figures in the newest 10 Q.

So back in Felix, the 10 K that I've used has been the year up to end of 2024.

I can see that there has been one quarters worth of information since then.

So I want to go into the press release of that.

Scroll down, I'll find the same exhibit that I used last time, although the numbers have obviously have been updated.

Let's check the dates. This is the three months ended March 25. Great. And then here's the three months ended March 24.

So I've got my new 10 Q information up here and my old 10 Q information down here.

I need that operating income there.

I'm going to save that, drop it in to the new 10 Q, the old, save that, drop that into the old 10 Q.

And again, there were no adjustments I wanted to make here. So I'll put zeros in and then copy that same sum figure across.

Next I need DNA.

So I'll go back, I'm gonna go into the quarterly accounts.

Open that up again. I'll go to sections in the top left hand corner.

Click on that. Then go to my statement of cashflow.

And I've got my DNA for the three months ended.

That's 2, 6, 7. Great. Paste that in.

And the 2 6 2, that's for the old DNA for the old three months.

Paste that in. Copy my EBITDA across.

I can now work out my LTM ebitda. So I take the annual subtract off the oldest three months, add in the newest three months, and my LTM EBITDA is 15,309.

Fantastic. Now I can work out my EV LTM EBITDA.

I take my EV divide it by that LTM ebitda and I get a figure of 21.3.

Lastly, we're asked to comment on the change in the multiple since the 7th of March, 2025.

If we have a scroll back up, we were told that the EV LTM EBITDA for Coca-Cola as at the 7th of March, 2025 was 20.8.

How does this compare with your results and why? How does this compare with changes in the peer company multiples? Well, if we scroll back down, we see that Coca-Cola's multiple has gone up.

So how can we investigate this? Well, firstly, I'd like to see what's happened to Coca-Cola's share price in that time.

We know that the share price that we've been using is 71.85.

Let's see what it was on the 7th of March.

So I go into Felix and I'm going to download the five year share price history.

And here it is. I'll scroll down to the bottom.

There's our 71.85, so that's great. That's what we've been using.

How does that compare with the figure on the 7th of March? If I scroll back up again, 7th of March, ah, it's a little bit higher.

So the multiple for Coca-Cola has gone up due to an increase in the share price.

But what about Pepsi, for instance? How does it compare to theirs? Well, I downloaded Pepsi's share price history for the last five years, and here that's the most recent 130.15.

How does that compare to the 7th of March? Well, if we go back to the 7th of March, it was 154.44.

Oh my gosh. So their share price has dropped from 154 to 130.

So dramatic difference there.

So if we were to look across the industry, we'd see that most of their share prices through the stage flat or gone down was Coca-Colas has gone up that tiny little bit.

So my final comment here is the increase in the multiple primarily reflects Coca-Cola's share price increase since that date.

During this time, PepsiCo's share price decreased significantly and Keurig Dr. Pepper's share price increased marginally.