Is Keurig Dr Pepper, Inc. overvalued or undervalued?

As of 25 February 2025, the valuation grade for Keurig Dr Pepper, Inc. has moved from expensive to very expensive. The company appears to be overvalued based on its current financial metrics. Key ratios include a P/E ratio of 19, an EV to EBITDA of 13.96, and a PEG ratio of 5.69, which indicates a high valuation relative to its growth prospects.
In comparison with peers, Keurig Dr Pepper's P/E ratio of 19 is lower than that of The Coca-Cola Co. at 44.30 and PepsiCo, Inc. at 22.78, but still reflects a premium valuation. The EV to EBITDA ratio of 13.96 is also comparable, albeit lower than The Coca-Cola Co.'s 41.58. While the stock has shown a slight outperformance against the S&P 500 over the past week and month, its longer-term returns are lagging, reinforcing the notion that the current valuation may not be justified.