Stock purchasing: Fair or Undervalue

[EricL]

(04-30-2015, 06:04 PM)stewardinlife Wrote: I checked KO and the P/E is over 25 currently -- So would you say it is okay to pass on purchasing KO presently, and invest in other ones. And maybe once KO's P/E does below 20, consider purchasing?

Thanks.
Paul

KO must have had some one-time adjustments to earnings that is skewing your PE number. KO is expected to make $2 per share in 2015 and is trading right around $40 with a 3.25% yield. I would consider it at fair value now, and the 3.25% yield is higher than you will normally see for the company.