Is Keurig Dr Pepper, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Keurig Dr Pepper, Inc. has moved from attractive to very expensive, indicating a shift towards overvaluation. The company appears overvalued based on key metrics such as a P/E ratio of 19, a Price to Book Value of 1.82, and an EV to EBITDA of 13.96. In comparison, a peer such as Coca-Cola has a P/E of 16.43, suggesting that Keurig Dr Pepper's valuation is significantly higher than its industry peers.
Additionally, the company's recent stock performance has been underwhelming, with a year-to-date return of -12.73% compared to the S&P 500's positive return of 13.30%, reinforcing the notion of overvaluation. Over the past three years, Keurig Dr Pepper has seen a return of -25.77%, while the S&P 500 has gained 81.19%, further highlighting the disparity in performance and the potential risks associated with its current valuation.