Coca-Cola Consolidated Labor Dispute May Be Undervaluing Shares

A labor dispute at Coca-Cola Consolidated (COKE) has led some to speculate that the company's shares may be undervalued.

The Teamsters union has escalated an unfair labor practice strike, extending picket lines from Anderson, Indiana into multiple Ohio facilities and disrupting operations for hundreds of union workers.

Shares of COKE trade at $190.98, with a 1-day share price return of 0.57% after the strike news, and a 7-day share price return that has slipped 3.85%, despite strong longer term momentum - including a year-to-date share price return of 27.46% and a 1-year total shareholder return of 67.55%.

According to Simply Wall St's discounted cash flow model, COKE is trading below an estimated future cash flow value of $253.17 at its current price of $190.98, suggesting the company may be undervalued by about 24%.