Keurig Dr Pepper Inc.

DB:DP5 Stock Report

Market Cap: €42.5b

Keurig Dr Pepper Valuation

Is DP5 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of DP5 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DP5 (€31.2) is trading below our estimate of fair value (€65.64)

Significantly Below Fair Value: DP5 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DP5?

Key metric: As DP5 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for DP5. This is calculated by dividing DP5's market cap by their current earnings.
What is DP5's PE Ratio?
PE Ratio19.6x
EarningsUS$2.28b
Market CapUS$44.56b

Price to Earnings Ratio vs Peers

How does DP5's PE Ratio compare to its peers?

The above table shows the PE ratio for DP5 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.2x
MUT Mineralbrunnen Überkingen-Teinach GmbH KGaA
11.9xn/a€103.8m
MNST Monster Beverage
33.2x11.7%US$53.5b
9633 Nongfu Spring
26.5x10.3%HK$357.1b
CCEP Coca-Cola Europacific Partners
21.2x9.3%€34.2b
DP5 Keurig Dr Pepper
19.6x6.2%€44.6b

Price-To-Earnings vs Peers: DP5 is good value based on its Price-To-Earnings Ratio (19.6x) compared to the peer average (23.4x).

Price to Earnings Ratio vs Industry

How does DP5's PE Ratio compare vs other companies in the European Beverage Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
DP5 19.6xIndustry Avg. 17.0xNo. of Companies7PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DP5 is expensive based on its Price-To-Earnings Ratio (19.6x) compared to the European Beverage industry average (17.3x).

Price to Earnings Ratio vs Fair Ratio

What is DP5's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DP5 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.6x
Fair PE Ratio23.1x

Price-To-Earnings vs Fair Ratio: DP5 is good value based on its Price-To-Earnings Ratio (19.6x) compared to the estimated Fair Price-To-Earnings Ratio (23.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst DP5 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€31.09
€36.21
+16.5%
9.2%€41.92€30.58n/a19
Nov ’25€30.10
€34.95
+16.1%
9.5%€40.52€29.47n/a19
Oct ’25€33.15
€33.91
+2.3%
8.6%€39.52€28.74n/a20
Sep ’25€32.95
€33.28
+1.0%
7.0%€37.02€28.89n/a20
Aug ’25€31.84
€34.08
+7.0%
6.9%€37.76€29.47n/a19
Jul ’25€31.57
€34.37
+8.9%
7.3%€38.19€29.80n/a20
Jun ’25€30.84
€33.48
+8.6%
9.1%€37.79€24.89n/a19
May ’25€31.39
€33.80
+7.7%
8.8%€38.33€25.24n/a20
Apr ’25€28.22
€31.92
+13.1%
8.7%€37.87€24.94n/a20
Mar ’25€26.84
€32.12
+19.7%
8.7%€37.83€24.92n/a20
Feb ’25€29.15
€32.96
+13.1%
9.6%€38.64€24.84n/a20
Jan ’25€29.73
€32.61
+9.7%
9.2%€38.17€24.54n/a20
Dec ’24€28.58
€33.52
+17.3%
9.5%€39.31€25.27n/a19
Nov ’24€28.45
€33.60
+18.1%
9.3%€39.75€25.55€30.1018
Oct ’24€29.62
€36.32
+22.6%
8.9%€42.58€28.39€33.1518
Sep ’24€30.97
€35.40
+14.3%
9.5%€41.38€27.59€32.9518
Aug ’24€30.79
€34.58
+12.3%
9.5%€40.82€27.21€31.8418
Jul ’24€28.46
€34.97
+22.9%
9.1%€41.40€27.60€31.5718
Jun ’24€28.78
€35.57
+23.6%
9.0%€41.95€27.97€30.8420
May ’24€29.36
€35.07
+19.4%
9.4%€40.84€27.23€31.3920
Apr ’24€32.33
€36.70
+13.5%
9.2%€41.98€27.98€28.2220
Mar ’24€31.90
€37.56
+17.7%
9.0%€42.66€28.44€26.8420
Feb ’24€32.06
€36.95
+15.3%
9.5%€41.32€27.55€29.1519
Jan ’24€33.51
€37.91
+13.1%
9.8%€42.45€28.30€29.7319
Dec ’23€37.00
€40.83
+10.4%
9.8%€45.55€30.37€28.5819
Nov ’23€39.63
€40.83
+3.1%
9.8%€45.55€30.37€28.4519

Analyst Forecast: Target price is less than 20% higher than the current share price.

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