KDP PE Ratio & Valuation,Is KDP Overvalued

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 13.04 is considered Undervalued compared with the five-year average of 18.53. The fair price of Keurig Dr Pepper Inc (KDP) is between 36.59 to 45.99 according to relative valuation methord. Compared to the current price of 27.14 USD , Keurig Dr Pepper Inc is Undervalued By 25.81%.

Relative Value

Fair Zone

36.59-45.99

Current Price：27.14

25.81%

Undervalued

13.04

11.02

EV/EBITDA

Keurig Dr Pepper Inc. (KDP) has a current EV/EBITDA of 11.02. The 5-year average EV/EBITDA is 14.11. The thresholds are as follows: Strongly Undervalued below 11.16, Undervalued between 11.16 and 12.63, Fairly Valued between 15.58 and 12.63, Overvalued between 15.58 and 17.06, and Strongly Overvalued above 17.06. The current Forward EV/EBITDA of 11.02 falls within the Strongly Undervalued range.

12.76

EV/EBIT

Keurig Dr Pepper Inc. (KDP) has a current EV/EBIT of 12.76. The 5-year average EV/EBIT is 16.21. The thresholds are as follows: Strongly Undervalued below 12.77, Undervalued between 12.77 and 14.49, Fairly Valued between 17.94 and 14.49, Overvalued between 17.94 and 19.66, and Strongly Overvalued above 19.66. The current Forward EV/EBIT of 12.76 falls within the Strongly Undervalued range.

2.22

Keurig Dr Pepper Inc. (KDP) has a current PS of 2.22. The 5-year average PS is 3.23. The thresholds are as follows: Strongly Undervalued below 2.17, Undervalued between 2.17 and 2.70, Fairly Valued between 3.76 and 2.70, Overvalued between 3.76 and 4.29, and Strongly Overvalued above 4.29. The current Forward PS of 2.22 falls within the Undervalued range.

11.00

P/OCF

Keurig Dr Pepper Inc. (KDP) has a current P/OCF of 11.00. The 5-year average P/OCF is 15.28. The thresholds are as follows: Strongly Undervalued below 11.13, Undervalued between 11.13 and 13.20, Fairly Valued between 17.36 and 13.20, Overvalued between 17.36 and 19.44, and Strongly Overvalued above 19.44. The current Forward P/OCF of 11.00 falls within the Strongly Undervalued range.

15.02

P/FCF

Keurig Dr Pepper Inc. (KDP) has a current P/FCF of 15.02. The 5-year average P/FCF is 19.35. The thresholds are as follows: Strongly Undervalued below 14.69, Undervalued between 14.69 and 17.02, Fairly Valued between 21.69 and 17.02, Overvalued between 21.69 and 24.02, and Strongly Overvalued above 24.02. The current Forward P/FCF of 15.02 falls within the Undervalued range.

Keurig Dr Pepper Inc (KDP) has a current Price-to-Book (P/B) ratio of 1.49. Compared to its 3-year average P/B ratio of 1.78 , the current P/B ratio is approximately -16.59% higher. Relative to its 5-year average P/B ratio of 1.90, the current P/B ratio is about -21.57% higher. Keurig Dr Pepper Inc (KDP) has a Forward Free Cash Flow (FCF) yield of approximately 4.31%. Compared to its 3-year average FCF yield of 3.30%, the current FCF yield is approximately 30.76% lower. Relative to its 5-year average FCF yield of 3.85% , the current FCF yield is about 12.16% lower.

1.49

P/B

Median3y

1.78

Median5y

1.90

4.31

FCF Yield

Median3y

3.30

Median5y

3.85

Competitors Valuation Multiple

The average P/S ratio for KDP's competitors is 2.20, providing a benchmark for relative valuation. Keurig Dr Pepper Inc Corp (KDP) exhibits a P/S ratio of 2.22, which is 0.92% above the industry average. Given its robust revenue growth of 10.67%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of KDP decreased by 15.11% 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.

10.67%

3.89B → 4.31B

Revenue Growth

-2.91%

15.83 → 15.37

Margin Expansion

-22.87%

31.05 → 23.95

P/E Change

-15.11%

32.10 → 27.25

Mkt Cap Growth

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Frequently Asked Questions

Is Keurig Dr Pepper Inc (KDP) currently overvalued or undervalued?

What is Keurig Dr Pepper Inc (KDP) fair value?

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. The fair price of Keurig Dr Pepper Inc (KDP) is between 36.59 to 45.99 according to relative valuation methord.

How does KDP's valuation metrics compare to the industry average?

What is the current P/B ratio for Keurig Dr Pepper Inc (KDP) as of Jan 08 2026?

As of Jan 08 2026, Keurig Dr Pepper Inc (KDP) has a P/B ratio of 1.49. This indicates that the market values KDP at 1.49 times its book value.

What is the current FCF Yield for Keurig Dr Pepper Inc (KDP) as of Jan 08 2026?

As of Jan 08 2026, Keurig Dr Pepper Inc (KDP) has a FCF Yield of 4.31%. This means that for every dollar of Keurig Dr Pepper Inc’s market capitalization, the company generates 4.31 cents in free cash flow.

What is the current Forward P/E ratio for Keurig Dr Pepper Inc (KDP) as of Jan 08 2026?

As of Jan 08 2026, Keurig Dr Pepper Inc (KDP) has a Forward P/E ratio of 13.04. This means the market is willing to pay $13.04 for every dollar of Keurig Dr Pepper Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Keurig Dr Pepper Inc (KDP) as of Jan 08 2026?

As of Jan 08 2026, Keurig Dr Pepper Inc (KDP) has a Forward P/S ratio of 2.22. This means the market is valuing KDP at $2.22 for every dollar of expected revenue over the next 12 months.

KDP Valuation