Is Keurig Dr Pepper, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Keurig Dr Pepper, Inc. has moved from expensive to very expensive, indicating a significant shift in perception regarding its market value. The company appears overvalued, supported by a P/E ratio of 19, a Price to Book Value of 1.82, and an EV to EBITDA ratio of 13.96, all of which suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Keurig Dr Pepper, Inc. has a higher P/E ratio than the peer average of 16.43, and its EV to EBITDA is also above the peer average of 12.50. This reinforces the notion that the company is overvalued relative to its industry. Additionally, the stock has underperformed against the S&P 500 across multiple time frames, with a 1-year return of -27.47% compared to the index's 17.14%, further highlighting the disconnect between its valuation and market performance.