Thanks to a 2% jump yesterday the Coca-Cola Amatil Ltd (ASX: CCL) share price hit a 52-week high of $10.83.
Despite its struggles, this gain means that the beverage company's shares have now climbed an astonishing 26% in the last 12 months.
Why have its shares rallied?
Coca-Cola Amatil's shares were given a boost last month after the release of a stronger-than-expected full-year result.
Although the company posted a 37% drop in net profit after tax to $246 million, this was largely the result of a $171.8 million after tax non-cash impairment charge taken on its SPC Ardmona business.
Excluding that charge the company posted a 6.2% increase in its underlying net profit after tax to $418 million. For a mature company like Coca-Cola Amatil I believe this underlying result should be regarded as a strong one.
Furthermore, the company has committed to buy back up to $350 million worth of its shares, representing approximately 4.6% of its float.
Is it too late to invest?
Whilst I have been a big fan of the company in the past, I don't think I would be a buyer at today's price.
Based on its underlying result I estimate its shares to be changing hands at approximately 20x earnings.
Although its shares do offer defensive qualities, I still think this is quite a premium for a company targeting mid-single digit earnings per share growth in FY 2017.
Because of this I would suggest investors hold off an investment and wait for a pull-back in order to pick up shares at a fairer price.
In the meantime an investment in consumer staples peers a2 Milk Company Ltd (Australia) (ASX: A2M) and Tassal Group Limited (ASX: TGR) could be a better option.
