Keurig Dr Pepper Inc. (KDP) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+36.0%

$49.02

vs $36.05 price

Levered DCF

$30.98

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

0.79

Distress zone

Rating

C+

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	18.31×	30.3×	21.36×	35.31×	24.25×	34.04×	32.53×	47.48×
P/B	1.49×	1.8×	1.82×	2.01×	2.09×	1.89×	1.75×	1.24×
P/S	2.29×	2.85×	3.15×	3.59×	4.11×	3.88×	3.66×	3.74×
EV / EBITDA	12.67×	17.89×	15.4×	20.37×	16.2×	19.69×	18.59×	26.09×
Gross margin	54.2%	55.6%	54.5%	52.1%	55.0%	55.8%	57.0%	52.2%
Operating margin	22.0%	21.6%	21.6%	19.8%	22.8%	21.3%	21.4%	16.6%
Net margin	12.5%	9.4%	14.7%	10.2%	16.9%	11.4%	11.3%	7.9%
Current ratio	0.64×	0.49×	0.38×	0.47×	0.47×	0.31×	0.35×	0.38×
Debt / equity	0.63×	0.71×	0.58×	0.54×	0.53×	0.61×	0.65×	0.71×
Interest coverage	4.84×	4.84×	5.36×	5.95×	5.51×	4.15×	3.68×	2.77×
Dividend yield	3.3%	2.7%	2.4%	2.1%	1.8%	1.9%	2.1%	0.8%
Payout ratio	60.1%	82.9%	52.4%	75.2%	44.5%	63.8%	67.3%	39.6%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	8.1%	5.9%	8.5%	5.7%	8.6%	5.6%	5.4%	2.6%
Return on invested capital	5.6%	5.2%	5.4%	5.2%	5.0%	4.2%	3.9%	2.1%
Return on assets	3.7%	2.7%	4.2%	2.8%	4.2%	2.7%	2.5%	1.2%
Free cash flow yield	4.0%	3.8%	1.8%	4.9%	4.6%	4.3%	5.2%	5.1%
Earnings yield	5.5%	3.3%	4.7%	2.8%	4.1%	2.9%	3.1%	2.1%
Enterprise value	$53.2B	$60.5B	$61.2B	$63.6B	$64.9B	$59.3B	$55.9B	$43.8B
Net debt / EBITDA	3.6×	4.96×	3.66×	4.18×	3.17×	4.73×	5.04×	9.49×
Cash conversion cycle (days)	-24	-49	-96	-168	-182	-176	-154	-112