Latest Ratios: P/E Ratio 20.6x · EV/EBITDA 13.2x · ROE 8.4%. (2004–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $42.8B | $38.2B | $43.9B | $46.9B | $50.9B | $52.6B | $45.5B | $41.1B | $28.1B | $2.9B | $2.7B |
| Enterprise Value | $57.9B | $53.3B | $60.7B | $61.5B | $64.0B | $65.3B | $59.7B | $56.2B | $44.0B | $7.3B | $5.4B |
| P/E Ratio → | 20.58 | 18.31 | 30.59 | 21.50 | 35.31 | 24.57 | 34.41 | 32.90 | 48.38 | 2.65 | 3.22 |
| P/S Ratio | 2.58 | 2.30 | 2.86 | 3.17 | 3.62 | 4.15 | 3.92 | 3.69 | 3.78 | 0.43 | 0.42 |
| P/B Ratio | 1.68 | 1.50 | 1.81 | 1.83 | 2.03 | 2.11 | 1.91 | 1.77 | 1.25 | 1.17 | 1.28 |
| P/FCF | 28.43 | 25.36 | 26.54 | 55.34 | 20.72 | 21.76 | 23.47 | 19.48 | 19.64 | 3.44 | 3.60 |
| P/OCF | 21.49 | 19.17 | 19.81 | 35.31 | 17.96 | 18.31 | 18.53 | 16.61 | 17.45 | 2.75 | 2.90 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.21 | 3.96 | 4.15 | 4.55 | 5.15 | 5.14 | 5.06 | 5.92 | 1.09 | 0.84 |
| EV / EBITDA | 13.16 | 12.11 | 18.27 | 15.72 | 19.31 | 18.14 | 19.07 | 18.52 | 26.36 | 4.50 | 3.27 |
| EV / EBIT | 15.87 | 15.49 | 22.92 | 18.90 | 26.53 | 19.81 | 25.35 | 23.95 | 35.44 | 5.44 | 3.79 |
| EV / FCF | — | 35.41 | 36.66 | 72.51 | 26.03 | 27.01 | 30.81 | 26.66 | 30.74 | 8.77 | 7.15 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 52.4% | 52.4% | 55.6% | 54.5% | 52.1% | 55.0% | 55.8% | 57.0% | 52.2% | 59.7% | 59.9% |
| Operating Margin | 22.0% | 22.0% | 16.9% | 21.5% | 18.5% | 22.8% | 21.3% | 21.4% | 16.6% | 20.7% | 22.3% |
| Net Profit Margin | 12.5% | 12.5% | 9.4% | 14.7% | 10.2% | 16.9% | 11.4% | 11.3% | 7.9% | 16.1% | 13.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 8.4% | 8.4% | 5.8% | 8.6% | 5.7% | 8.8% | 5.6% | 5.5% | 4.7% | 46.9% | 39.2% |
| ROA | 3.8% | 3.8% | 2.7% | 4.2% | 2.8% | 4.3% | 2.7% | 2.5% | 2.0% | 10.9% | 9.1% |
| ROIC | 6.7% | 6.7% | 4.8% | 6.1% | 5.2% | 5.7% | 4.9% | 4.6% | 4.1% | 17.8% | 22.7% |
| ROCE | 7.9% | 7.9% | 5.9% | 7.3% | 5.9% | 6.7% | 5.8% | 5.5% | 4.8% | 15.8% | 17.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.63 | 0.63 | 0.71 | 0.58 | 0.54 | 0.53 | 0.61 | 0.65 | 0.71 | 1.83 | 2.10 |
| Debt / EBITDA | 3.67 | 3.67 | 5.20 | 3.79 | 4.10 | 3.68 | 4.62 | 5.02 | 9.57 | 2.77 | 2.70 |
| Net Debt / Equity | — | 0.59 | 0.69 | 0.57 | 0.52 | 0.51 | 0.60 | 0.65 | 0.71 | 1.80 | 1.26 |
| Net Debt / EBITDA | 3.43 | 3.43 | 5.04 | 3.72 | 3.94 | 3.53 | 4.55 | 4.99 | 9.52 | 2.73 | 1.62 |
| Debt / FCF | — | 10.04 | 10.12 | 17.17 | 5.31 | 5.25 | 7.35 | 7.18 | 11.10 | 5.32 | 3.55 |
| Interest Coverage | 4.56 | 4.56 | 3.87 | 5.46 | 5.15 | 6.28 | 3.95 | 3.63 | 2.79 | 7.96 | 10.21 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.64 | 0.64 | 0.49 | 0.38 | 0.47 | 0.47 | 0.31 | 0.35 | 0.38 | 0.90 | 2.60 |
| Quick Ratio | 0.43 | 0.43 | 0.33 | 0.25 | 0.31 | 0.33 | 0.21 | 0.25 | 0.27 | 0.72 | 2.41 |
| Cash Ratio | 0.12 | 0.12 | 0.06 | 0.03 | 0.07 | 0.09 | 0.03 | 0.01 | 0.01 | 0.05 | 1.70 |
| Asset Turnover | — | 0.30 | 0.29 | 0.28 | 0.27 | 0.25 | 0.23 | 0.22 | 0.15 | 0.67 | 0.66 |
| Inventory Turnover | 4.56 | 4.56 | 5.25 | 5.90 | 5.12 | 6.38 | 6.73 | 7.31 | 5.69 | 11.77 | 12.78 |
| Days Sales Outstanding | — | 36.74 | 40.97 | 37.43 | 43.31 | 36.66 | 35.94 | 38.86 | 59.98 | 38.74 | 36.61 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.9% | 3.3% | 2.7% | 2.4% | 2.1% | 1.8% | 1.9% | 2.1% | 0.8% | 14.5% | 14.2% |
| Payout Ratio | 60.1% | 60.1% | 82.9% | 52.4% | 75.2% | 44.5% | 63.8% | 67.3% | 39.6% | 38.5% | 45.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.9% | 5.5% | 3.3% | 4.7% | 2.8% | 4.1% | 2.9% | 3.0% | 2.1% | 37.7% | 31.1% |
| FCF Yield | 3.5% | 3.9% | 3.8% | 1.8% | 4.8% | 4.6% | 4.3% | 5.1% | 5.1% | 29.0% | 27.8% |
| Buyback Yield | 0.0% | 0.0% | 2.5% | 1.5% | 0.7% | 0.0% | 0.0% | 0.0% | 0.0% | 14.0% | 19.1% |
| Total Shareholder Yield | 2.9% | 3.3% | 5.2% | 3.9% | 2.9% | 1.8% | 1.9% | 2.1% | 0.8% | 28.5% | 33.2% |
| Shares Outstanding | — | $1.4B | $1.4B | $1.4B | $1.4B | $1.4B | $1.4B | $1.4B | $1.1B | $183M | $187M |
Elevated debt and goodwill
According to current market data, KDP trades at a forward P/E of 14.63, which appears to discount the company's limited international footprint and the maturity of its U.S. coffee segment compared to the premium multiples commanded by global beverage peers like Coca-Cola and Monster Beverage.
The valuation gap relative to peers suggests that investors are pricing in a lower terminal growth rate for the single-serve coffee business. While the forward P/E is modest, the PEG ratio of 2.09 indicates that the market remains skeptical of the company's ability to translate its distribution-as-a-service model into sustained, high-quality earnings growth.
Based on reported financial figures, KDP's ROIC has struggled to exceed 2% in recent quarters, a performance that significantly lags the double-digit returns typically generated by consumer defensive peers and suggests that the company's massive goodwill base is failing to drive meaningful incremental value creation.
The persistent low ROIC indicates that the capital invested in past acquisitions is not yielding sufficient returns to justify the company's cost of capital. Investors should monitor whether management can improve asset utilization or if the current capital structure will continue to drag on long-term shareholder value compounding.
As reported in recent filings, KDP's cash conversion cycle has turned negative, reaching -18 days in 2026Q1, which appears to be driven by aggressive management of accounts payable rather than fundamental improvements in inventory turnover or the efficiency of the core beverage distribution network.
While a negative CCC is often viewed as a sign of bargaining power, the reliance on extended DPO to manage liquidity may indicate underlying pressure on supplier relationships. The disparity between inventory days and payable days warrants further investigation into whether this efficiency is sustainable or merely a temporary liquidity management tactic.
Based on the provided financial statements, KDP's debt-to-EBITDA ratio spiked to 40.29 in 2026Q1, a dramatic increase from the 16.16 level observed in 2025Q4, which suggests that the company's ability to service its obligations is becoming increasingly sensitive to fluctuations in operating performance.
The sharp rise in leverage, coupled with an interest coverage ratio that has compressed to 2.27, indicates that the balance sheet is no longer the fortress it once appeared to be. This shift in the debt profile may limit management's flexibility to pursue further strategic acquisitions or return capital to shareholders.
The most commonly misapplied metric for KDP is the standard P/E ratio, which obscures the company's unique hybrid nature as both a consumer staple brand owner and a capital-intensive appliance manufacturer, leading to an incomplete assessment of its true earnings quality and long-term growth potential.
Analysts should instead focus on EV/EBITDA and free cash flow yield to account for the significant non-cash depreciation associated with the Keurig hardware installed base. Relying solely on P/E ignores the lumpy nature of capital expenditures required to maintain the brewer ecosystem, which can artificially inflate or deflate earnings in any given period.
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Quick answers to the most common questions about buying KDP stock.
Keurig Dr Pepper Inc.'s current P/E ratio is 20.6x. The historical average is 15.9x. This places it at the 59th percentile of its historical range.
Keurig Dr Pepper Inc.'s current EV/EBITDA is 13.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.4x.
Keurig Dr Pepper Inc.'s return on equity (ROE) is 8.4%. The historical average is 17.6%.
Based on historical data, Keurig Dr Pepper Inc. is trading at a P/E of 20.6x. This is at the 59th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Keurig Dr Pepper Inc.'s current dividend yield is 2.91% with a payout ratio of 60.1%.
Keurig Dr Pepper Inc. has 52.4% gross margin and 22.0% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Keurig Dr Pepper Inc.'s Debt/EBITDA ratio is 3.7x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.