KDP Relative Valuation
KDP's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, KDP is overvalued; if below, it's undervalued.
Historical Valuation
Keurig Dr Pepper Inc (KDP) is now in the Undervalued zone, suggesting that its current forward PE ratio of 13.40 is considered Undervalued compared with the five-year average of 18.64. The fair price of Keurig Dr Pepper Inc (KDP) is between 37.91 to 47.30 according to relative valuation methord. Compared to the current price of 28.58 USD , Keurig Dr Pepper Inc is Undervalued By 24.61%.
Relative Value
Fair Zone
37.91-47.30
Current Price：28.58
24.61%
Undervalued
13.43
PE
1Y
3Y
5Y
Trailing
Forward
11.18
EV/EBITDA
Keurig Dr Pepper Inc. (KDP) has a current EV/EBITDA of 11.18. The 5-year average EV/EBITDA is 14.16. The thresholds are as follows: Strongly Undervalued below 11.31, Undervalued between 11.31 and 12.73, Fairly Valued between 15.59 and 12.73, Overvalued between 15.59 and 17.02, and Strongly Overvalued above 17.02. The current Forward EV/EBITDA of 11.18 falls within the Strongly Undervalued range.
12.94
EV/EBIT
Keurig Dr Pepper Inc. (KDP) has a current EV/EBIT of 12.94. The 5-year average EV/EBIT is 16.28. The thresholds are as follows: Strongly Undervalued below 12.93, Undervalued between 12.93 and 14.60, Fairly Valued between 17.96 and 14.60, Overvalued between 17.96 and 19.63, and Strongly Overvalued above 19.63. The current Forward EV/EBIT of 12.94 falls within the Undervalued range.
2.26
PS
Keurig Dr Pepper Inc. (KDP) has a current PS of 2.26. The 5-year average PS is 3.25. The thresholds are as follows: Strongly Undervalued below 2.21, Undervalued between 2.21 and 2.73, Fairly Valued between 3.77 and 2.73, Overvalued between 3.77 and 4.29, and Strongly Overvalued above 4.29. The current Forward PS of 2.26 falls within the Undervalued range.
11.24
P/OCF
Keurig Dr Pepper Inc. (KDP) has a current P/OCF of 11.24. The 5-year average P/OCF is 15.40. The thresholds are as follows: Strongly Undervalued below 11.26, Undervalued between 11.26 and 13.33, Fairly Valued between 17.48 and 13.33, Overvalued between 17.48 and 19.55, and Strongly Overvalued above 19.55. The current Forward P/OCF of 11.24 falls within the Strongly Undervalued range.
14.60
P/FCF
Keurig Dr Pepper Inc. (KDP) has a current P/FCF of 14.60. The 5-year average P/FCF is 19.38. The thresholds are as follows: Strongly Undervalued below 14.76, Undervalued between 14.76 and 17.07, Fairly Valued between 21.69 and 17.07, Overvalued between 21.69 and 24.00, and Strongly Overvalued above 24.00. The current Forward P/FCF of 14.60 falls within the Strongly Undervalued range.
Keurig Dr Pepper Inc (KDP) has a current Price-to-Book (P/B) ratio of 1.53. Compared to its 3-year average P/B ratio of 1.80 , the current P/B ratio is approximately -14.96% higher. Relative to its 5-year average P/B ratio of 1.90, the current P/B ratio is about -19.59% higher. Keurig Dr Pepper Inc (KDP) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.33%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.85% , the current FCF yield is about -100.00% lower.
1.53
P/B
Median3y
1.80
Median5y
1.90
4.22
FCF Yield
Median3y
3.33
Median5y
3.85
Competitors Valuation Multiple
The average P/S ratio for KDP's competitors is 1.69, providing a benchmark for relative valuation. Keurig Dr Pepper Inc Corp (KDP) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 10.67%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of KDP decreased by 11.02% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 3.89B to 4.31B.
The secondary factor is the Margin Expansion, contributed -2.91%to the performance.
Overall, the performance of KDP in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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