Keurig Dr Pepper Inc.

NasdaqGS:KDP Stock Report

Market Cap: US$42.4b

Keurig Dr Pepper Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 ($30.59) is trading below our estimate of fair value ($52.79)

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?

Other financial metrics that can be useful for relative valuation.

KDP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.9x
Enterprise Value/EBITDA14.5x
PEG Ratio3.6x

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 Average25.2x
MNST Monster Beverage
37.8x11.7%US$61.6b
KOF Coca-Cola FEMSA. de
17.2x9.5%US$20.3b
COKE Coca-Cola Consolidated
19.3xn/aUS$7.9b
PEP PepsiCo
26.3x9.2%US$238.6b
KDP Keurig Dr Pepper
19.5x5.4%US$42.4b

Price-To-Earnings vs Peers: KDP is good value based on its Price-To-Earnings Ratio (19.5x) compared to the peer average (25.2x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.3%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.3%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: KDP is good value based on its Price-To-Earnings Ratio (19.5x) compared to the Global Beverage industry average (19.8x).


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 Ratio19.5x
Fair PE Ratio21.9x

Price-To-Earnings vs Fair Ratio: KDP is good value based on its Price-To-Earnings Ratio (19.5x) compared to the estimated Fair Price-To-Earnings Ratio (21.9x).


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$30.59
US$34.56
+13.0%
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$27.00n/a19
Nov ’24US$30.46
US$35.50
+16.5%
9.3%US$42.00US$27.00n/a18
Oct ’24US$31.57
US$38.39
+21.6%
8.9%US$45.00US$30.00n/a18
Sep ’24US$33.55
US$38.50
+14.8%
9.5%US$45.00US$30.00n/a18
Aug ’24US$34.13
US$38.12
+11.7%
9.5%US$45.00US$30.00n/a18
Jul ’24US$31.27
US$38.01
+21.6%
9.1%US$45.00US$30.00n/a18
Jun ’24US$31.17
US$38.16
+22.4%
9.0%US$45.00US$30.00n/a20
May ’24US$32.57
US$38.65
+18.7%
9.4%US$45.00US$30.00n/a20
Apr ’24US$35.28
US$39.31
+11.4%
9.5%US$45.00US$30.00n/a19
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
Nov ’23US$37.84
US$40.34
+6.6%
9.8%US$45.00US$30.00US$30.4619
Oct ’23US$35.82
US$41.08
+14.7%
8.9%US$47.00US$34.00US$31.5718
Sep ’23US$38.33
US$41.19
+7.5%
8.7%US$47.00US$34.00US$33.5518
Aug ’23US$38.91
US$40.57
+4.3%
9.3%US$47.00US$33.00US$34.1318
Jul ’23US$36.07
US$40.43
+12.1%
9.1%US$46.00US$33.00US$31.2719
Jun ’23US$34.64
US$40.66
+17.4%
8.9%US$46.00US$33.00US$31.1720
May ’23US$37.40
US$40.80
+9.1%
8.7%US$46.00US$32.00US$32.5720
Apr ’23US$38.24
US$39.70
+3.8%
7.4%US$44.00US$32.00US$35.2820
Mar ’23US$38.16
US$39.50
+3.5%
8.2%US$44.00US$30.50US$34.1920

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


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