Keurig Dr Pepper Inc.

NasdaqGS:KDP Stock Report

Market Cap: US$43.9b

Keurig Dr Pepper Valuation

Is KDP 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 KDP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: KDP ($32.37) is trading below our estimate of fair value ($64.84)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for KDP. This is calculated by dividing KDP's market cap by their current earnings.
What is KDP's PE Ratio?
PE Ratio19.3x
EarningsUS$2.28b
Market CapUS$43.95b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for KDP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average36.9x
MNST Monster Beverage
31.3x11.4%US$49.5b
KOF Coca-Cola FEMSA. de
15.4x12.0%US$16.5b
COKE Coca-Cola Consolidated
19.9xn/aUS$10.7b
PRMB Primo Brands
81x107.5%US$11.5b
KDP Keurig Dr Pepper
19.3x6.3%US$43.9b

Price-To-Earnings vs Peers: KDP is good value based on its Price-To-Earnings Ratio (19.3x) compared to the peer average (36.9x).

Price to Earnings Ratio vs Industry

How does KDP's PE Ratio compare vs other companies in the US Beverage Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ASII Accredited Solutions
0.5xn/aUS$1.33m
VWES.Q Vintage Wine Estates
n/an/aUS$5.99k
No more companies available in this PE range
KDP 19.3xIndustry Avg. 18.3xNo. of Companies3PE01632486480+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: KDP is expensive based on its Price-To-Earnings Ratio (19.3x) compared to the Global Beverage industry average (18.3x).

Price to Earnings Ratio vs Fair Ratio

What is KDP'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.

KDP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.3x
Fair PE Ratio23.6x

Price-To-Earnings vs Fair Ratio: KDP is good value based on its Price-To-Earnings Ratio (19.3x) compared to the estimated Fair Price-To-Earnings Ratio (23.6x).

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 KDP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$32.37
US$37.85
+16.9%
8.6%US$42.00US$32.10n/a19
Dec ’25US$32.65
US$38.01
+16.4%
9.2%US$44.00US$32.10n/a19
Nov ’25US$32.82
US$37.95
+15.6%
9.5%US$44.00US$32.00n/a19
Oct ’25US$37.19
US$37.76
+1.5%
8.6%US$44.00US$32.00n/a20
Sep ’25US$36.61
US$36.86
+0.7%
7.0%US$41.00US$32.00n/a20
Aug ’25US$34.56
US$37.00
+7.1%
6.9%US$41.00US$32.00n/a19
Jul ’25US$32.84
US$36.90
+12.4%
7.3%US$41.00US$32.00n/a20
Jun ’25US$34.25
US$36.32
+6.0%
9.1%US$41.00US$27.00n/a19
May ’25US$33.34
US$36.16
+8.5%
8.8%US$41.00US$27.00n/a20
Apr ’25US$31.23
US$34.56
+10.7%
8.7%US$41.00US$27.00n/a20
Mar ’25US$29.28
US$34.81
+18.9%
8.7%US$41.00US$27.00n/a20
Feb ’25US$31.98
US$35.83
+12.0%
9.6%US$42.00US$27.00n/a20
Jan ’25US$33.32
US$35.88
+7.7%
9.2%US$42.00US$27.00n/a20
Dec ’24US$32.17
US$35.82
+11.3%
9.5%US$42.00US$27.00US$32.6519
Nov ’24US$30.46
US$35.50
+16.5%
9.3%US$42.00US$27.00US$32.8218
Oct ’24US$31.57
US$38.39
+21.6%
8.9%US$45.00US$30.00US$37.1918
Sep ’24US$33.55
US$38.50
+14.8%
9.5%US$45.00US$30.00US$36.6118
Aug ’24US$34.13
US$38.12
+11.7%
9.5%US$45.00US$30.00US$34.5618
Jul ’24US$31.27
US$38.01
+21.6%
9.1%US$45.00US$30.00US$32.8418
Jun ’24US$31.17
US$38.16
+22.4%
9.0%US$45.00US$30.00US$34.2520
May ’24US$32.57
US$38.65
+18.7%
9.4%US$45.00US$30.00US$33.3420
Apr ’24US$35.28
US$39.35
+11.5%
9.2%US$45.00US$30.00US$31.2320
Mar ’24US$34.19
US$39.63
+15.9%
9.0%US$45.00US$30.00US$29.2820
Feb ’24US$35.34
US$40.24
+13.9%
9.5%US$45.00US$30.00US$31.9819
Jan ’24US$35.66
US$40.18
+12.7%
9.8%US$45.00US$30.00US$33.3219
Dec ’23US$38.71
US$40.34
+4.2%
9.8%US$45.00US$30.00US$32.1719

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/20 22:33
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Keurig Dr Pepper Inc. is covered by 49 analysts. 16 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Ishan MajumdarBaptista Research
Lauren LiebermanBarclays
Lauren LiebermanBarclays