Keurig Dr Pepper is a leading coffee and beverage company in North America. The company holds leadership positions in soft drinks, specialty coffee and tea, water, juice and juice drinks and mixers, and markets the #1 single serve coffee brewing system in the U.S. The Company maintains an unrivaled distribution system that enables its portfolio of more than 125 owned, licensed and partner brands to be available nearly everywhere people shop and consume beverages. The company was founded in 2007 and is based in Plano, Texas.
KDP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Keurig Dr Pepper Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Keurig Dr Pepper Inc ranked in the 49th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 5.5% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Keurig Dr Pepper Inc, consider:
The company's balance sheet shows it gets 75% of its capital from equity, and 25% of its capital from debt. Its equity weight surpasses that of 54.88% of free cash flow generating stocks in the Consumer Defensive sector.
Keurig Dr Pepper Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than just 15.13% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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It's been three months since I last wrote about Keurig Dr Pepper (KDP), and since then, the shares have underperformed the market, with a -4.4% return since July 1st. During the same time period, the S&P 500 has continued to rally, with a +7.4% return on price. In this article,...
BURLINGTON, Mass. and PLANO, Texas, Sept. 21, 2020 /PRNewswire/ -- Dr Pepper, one of the largest brands in the Keurig Dr Pepper portfolio, today announced the doubling of its annual Dr Pepper Tuition Giveaway program to $2 million, its largest giveaway in the program's 12-year history….
BURLINGTON, Mass. and PLANO, Texas, Sept. 15, 2020 /PRNewswire/ -- Keurig Dr Pepper (NYSE: KDP) announced today that its Board of Directors has declared a regular quarterly cash dividend of $0.15 per share, payable in U.S. dollars, on the Company's common stock. The regular quarterly…
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