In the past five years, Coca-Cola (KO +1.04%) has climbed 53% (as of July 9). While this gain has significantly lagged the overall market, the company has been a safe holding in portfolios due to the predictable nature of its operations. And it's hard to deny its current dividend yield of 2.57%.

Is this beverage stock heading to $100?

Image source: The Motley Fool.

Coca-Cola continues to post solid financial results, supporting the view that this is a high-quality business. During the first quarter (ended April 3), the company reported $12.5 billion in revenue, up 12% year over year. And its operating margin was a stellar 35%.

Macro headwinds are no match for Coca-Cola, which benefits from durable demand. It leans on its strong brand to drive financial success.

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NYSE: KO

Coca-Cola

Today's Change

(1.04%) $0.86

Current Price

$83.49

Key Data Points

Market Cap

$356BMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.Market cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.

Day's Range

$82.41 - $83.73

52wk Range

$65.35 - $85.68

Volume

10.4M

Avg Vol

16.8M

Gross Margin

61.82%

Dividend Yield

2.52%

Investors shouldn't ignore valuation in their research process. Right now, Coca-Cola shares trade at a price-to-earnings ratio of 26. This is in line with its trailing-five-year average, suggesting a fairly valued stock.

The share price will surely rise 21% to hit $100 in the future. It's only a matter of time. However, it's anyone's guess when this milestone will be reached. It could happen in 2026. It could also take three years or longer.

This is an outstanding business. But investors shouldn't buy Coca-Cola if they're seeking outsize capital appreciation.