Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Keurig Dr Pepper Inc., current price multiples
| Keurig Dr Pepper Inc. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | Food, Beverage & Tobacco | Consumer Staples | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||
| Current share price (P) | $38.50 | |||||||||
| No. shares of common stock outstanding | 1,416,070,252 | |||||||||
| Growth rate (g) | 1.97% | |||||||||
| Earnings per share (EPS) | $1.52 | |||||||||
| Next year expected EPS | $1.55 | |||||||||
| Operating profit per share | $2.04 | |||||||||
| Sales per share | $8.96 | |||||||||
| Book value per share (BVPS) | $17.63 | |||||||||
| Valuation Ratios (Price Multiples) | ||||||||||
| Price to earnings (P/E) | 25.40 | 28.25 | 18.86 | 19.48 | 39.92 | 27.78 | 36.36 | |||
| Price to next year expected earnings | 24.91 | 26.04 | 17.63 | 17.41 | — | 24.77 | 32.63 | |||
| Price-earnings-growth (PEG) | 12.91 | 3.33 | 2.72 | 1.64 | — | 2.29 | 3.19 | |||
| Price to operating profit (P/OP) | 18.84 | 30.05 | 13.70 | 14.48 | 21.02 | 21.88 | 26.51 | |||
| Price to sales (P/S) | 4.30 | 6.38 | 2.39 | 2.03 | 7.44 | 4.80 | 2.25 | |||
| Price to book value (P/BV) | 2.18 | 12.08 | 3.23 | 10.34 | — | 14.96 | 11.37 | |||
Based on: 10-K (reporting date: 2021-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Keurig Dr Pepper Inc., historical price multiples
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
- Price to Earnings (P/E) Ratio
- The Price to Earnings ratio shows a pronounced decline from 60.35 in 2018 to 24.22 in 2021. This downward trend indicates that the market valuation relative to the company's earnings has decreased significantly over the four-year period. The sharp drop from 2018 to 2019 is notable, with the ratio roughly halving, followed by relative stabilization around the low 30s before declining again in 2021.
- Price to Operating Profit (P/OP) Ratio
- The Price to Operating Profit ratio demonstrates a substantial reduction from 28.59 in 2018 to a range between 16.71 and 17.96 in subsequent years up to 2021. This reflects a decreased market valuation in relation to operating profit, suggesting either improved profitability or a more cautious market outlook. The ratio stabilizes near 17 in the last three years, implying market consistency in assessing operating profitability.
- Price to Sales (P/S) Ratio
- The Price to Sales ratio decreased from 4.75 in 2018 to 3.57 in 2019, then experienced a gradual increase, reaching 4.10 by 2021. This pattern suggests initial valuation contraction relative to sales, followed by a recovery and rising confidence as sales valuation improves toward the end of the period.
- Price to Book Value (P/BV) Ratio
- The Price to Book Value ratio shows a consistent upward trend over the years, increasing from 1.57 in 2018 to 2.08 in 2021. This steady climb indicates growing market valuation of the company relative to its book value, potentially reflecting increased investor confidence in the company's asset base or anticipated future growth.
- Overall Insights
- The data indicates a general trend of decreasing market valuation multiples relative to earnings and operating profit, suggesting enhanced earnings performance or more conservative investor expectations. Concurrently, the Price to Sales ratio displays a dip followed by recovery, reflecting fluctuating market perception of sales value. Meanwhile, the Price to Book Value ratio's steady rise suggests strengthening investor confidence in the company’s net asset value.
Price to Earnings (P/E)
Keurig Dr Pepper Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,418,158,363 | 1,407,267,272 | 1,406,986,313 | 1,406,081,521 | |
| Selected Financial Data (US$) | |||||
| Net income attributable to KDP (in millions) | 2,146) | 1,325) | 1,254) | 586) | |
| Earnings per share (EPS)2 | 1.51 | 0.94 | 0.89 | 0.42 | |
| Share price1, 3 | 36.65 | 30.86 | 28.24 | 25.15 | |
| Valuation Ratio | |||||
| P/E ratio4 | 24.22 | 32.78 | 31.69 | 60.35 | |
| Benchmarks | |||||
| P/E Ratio, Competitors5 | |||||
| Coca-Cola Co. | 27.63 | 27.91 | — | — | |
| Mondelēz International Inc. | 21.64 | 22.33 | — | — | |
| PepsiCo Inc. | 30.58 | 26.15 | — | — | |
| Philip Morris International Inc. | 18.37 | 16.55 | — | — | |
| P/E Ratio, Sector | |||||
| Food, Beverage & Tobacco | 24.78 | 23.23 | — | — | |
| P/E Ratio, Industry | |||||
| Consumer Staples | 26.07 | 24.12 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
EPS = Net income attributable to KDP ÷ No. shares of common stock outstanding
= 2,146,000,000 ÷ 1,418,158,363 = 1.51
3 Closing price as at the filing date of Keurig Dr Pepper Inc. Annual Report.
4 2021 Calculation
P/E ratio = Share price ÷ EPS
= 36.65 ÷ 1.51 = 24.22
5 Click competitor name to see calculations.
- Share Price
- The share price demonstrated a consistent upward trend over the four-year period. Starting at $25.15 in 2018, it increased steadily each year, reaching $36.65 by the end of 2021. This represents a cumulative increase of approximately 45.7%, indicating growing market confidence or positive investor sentiment toward the company's stock.
- Earnings Per Share (EPS)
- The earnings per share showed significant growth throughout the period. EPS more than tripled from $0.42 in 2018 to $1.51 in 2021, with notable jumps between 2018 and 2019, and again between 2020 and 2021. This upward trajectory suggests improved profitability and potentially effective operational management or favorable market conditions impacting net earnings positively.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio exhibited a decreasing trend over the period, moving from 60.35 in 2018 down to 24.22 in 2021. While the share price increased, the rate of EPS growth outpaced price increases, leading to a compression in the P/E ratio. This decline in P/E ratio may indicate the stock becoming more reasonably valued relative to earnings, possibly reflecting increased investor confidence in the sustainability of earnings growth or a correction from previously high valuation levels.
Price to Operating Profit (P/OP)
Keurig Dr Pepper Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,418,158,363 | 1,407,267,272 | 1,406,986,313 | 1,406,081,521 | |
| Selected Financial Data (US$) | |||||
| Income from operations (in millions) | 2,894) | 2,480) | 2,378) | 1,237) | |
| Operating profit per share2 | 2.04 | 1.76 | 1.69 | 0.88 | |
| Share price1, 3 | 36.65 | 30.86 | 28.24 | 25.15 | |
| Valuation Ratio | |||||
| P/OP ratio4 | 17.96 | 17.51 | 16.71 | 28.59 | |
| Benchmarks | |||||
| P/OP Ratio, Competitors5 | |||||
| Coca-Cola Co. | 26.19 | 24.03 | — | — | |
| Mondelēz International Inc. | 20.00 | 20.60 | — | — | |
| PepsiCo Inc. | 20.87 | 18.47 | — | — | |
| Philip Morris International Inc. | 12.90 | 11.43 | — | — | |
| P/OP Ratio, Sector | |||||
| Food, Beverage & Tobacco | 19.52 | 17.78 | — | — | |
| P/OP Ratio, Industry | |||||
| Consumer Staples | 19.01 | 18.29 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
Operating profit per share = Income from operations ÷ No. shares of common stock outstanding
= 2,894,000,000 ÷ 1,418,158,363 = 2.04
3 Closing price as at the filing date of Keurig Dr Pepper Inc. Annual Report.
4 2021 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 36.65 ÷ 2.04 = 17.96
5 Click competitor name to see calculations.
- Share Price Trend
- The share price demonstrated a consistent upward trajectory over the four-year period. Starting at $25.15 at the end of 2018, it rose steadily each year to reach $36.65 by the end of 2021, indicating sustained market confidence and growth potential.
- Operating Profit per Share Trend
- Operating profit per share showed a significant improvement from $0.88 in 2018 to $2.04 in 2021. This nearly two and a half times increase suggests enhanced operational efficiency or profitability, positively impacting earnings distributed per share.
- Price to Operating Profit Ratio (P/OP) Dynamics
- The P/OP ratio experienced a notable decline from 28.59 in 2018 to approximately 17.96 in 2021, with a marked drop between 2018 and 2019. This decrease implies that the share price growth was somewhat outpaced by the increase in operating profit per share, indicating the stock became relatively more economically valued based on its operating profitability over time.
- Overall Financial Insights
- The data highlights an overall positive financial performance characterized by rising share prices and increasing operating profits per share. Despite the upward trend in share price, the declining P/OP ratio suggests improving profitability metrics, potentially offering a more attractive valuation for investors. This combination of growing profitability and a moderate valuation multiple might signal a robust and efficiently managed company performance across the assessed periods.
Price to Sales (P/S)
Keurig Dr Pepper Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,418,158,363 | 1,407,267,272 | 1,406,986,313 | 1,406,081,521 | |
| Selected Financial Data (US$) | |||||
| Net sales (in millions) | 12,683) | 11,618) | 11,120) | 7,442) | |
| Sales per share2 | 8.94 | 8.26 | 7.90 | 5.29 | |
| Share price1, 3 | 36.65 | 30.86 | 28.24 | 25.15 | |
| Valuation Ratio | |||||
| P/S ratio4 | 4.10 | 3.74 | 3.57 | 4.75 | |
| Benchmarks | |||||
| P/S Ratio, Competitors5 | |||||
| Coca-Cola Co. | 6.99 | 6.55 | — | — | |
| Mondelēz International Inc. | 3.24 | 2.99 | — | — | |
| PepsiCo Inc. | 2.93 | 2.65 | — | — | |
| Philip Morris International Inc. | 5.33 | 4.65 | — | — | |
| P/S Ratio, Sector | |||||
| Food, Beverage & Tobacco | 4.28 | 3.88 | — | — | |
| P/S Ratio, Industry | |||||
| Consumer Staples | 1.61 | 1.49 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 12,683,000,000 ÷ 1,418,158,363 = 8.94
3 Closing price as at the filing date of Keurig Dr Pepper Inc. Annual Report.
4 2021 Calculation
P/S ratio = Share price ÷ Sales per share
= 36.65 ÷ 8.94 = 4.10
5 Click competitor name to see calculations.
- Share Price
- The share price showed a consistent upward trend over the four-year period. It increased from $25.15 at the end of 2018 to $36.65 at the end of 2021. This represents a notable appreciation, with the largest year-on-year increase occurring between 2020 and 2021.
- Sales Per Share
- Sales per share exhibited steady growth throughout the observed years. Starting at $5.29 in 2018, it rose significantly to $7.90 in 2019, continued to increase to $8.26 in 2020, and reached $8.94 in 2021. This growth indicates improving revenue generation per share, though the rate of increase slowed down after 2019.
- Price-to-Sales (P/S) Ratio
- The P/S ratio initially decreased from 4.75 in 2018 to 3.57 in 2019, suggesting the market price increased at a slower pace than sales per share or that the stock became more attractively priced relative to sales. However, from 2019 onwards, the P/S ratio experienced a gradual increase, climbing to 3.74 in 2020 and further to 4.10 in 2021. This upward movement suggests that the share price growth started to outpace the sales per share growth in the latter years.
Price to Book Value (P/BV)
Keurig Dr Pepper Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,418,158,363 | 1,407,267,272 | 1,406,986,313 | 1,406,081,521 | |
| Selected Financial Data (US$) | |||||
| Stockholders’ equity (in millions) | 24,972) | 23,829) | 23,257) | 22,533) | |
| Book value per share (BVPS)2 | 17.61 | 16.93 | 16.53 | 16.03 | |
| Share price1, 3 | 36.65 | 30.86 | 28.24 | 25.15 | |
| Valuation Ratio | |||||
| P/BV ratio4 | 2.08 | 1.82 | 1.71 | 1.57 | |
| Benchmarks | |||||
| P/BV Ratio, Competitors5 | |||||
| Coca-Cola Co. | 11.74 | 11.20 | — | — | |
| Mondelēz International Inc. | 3.29 | 2.88 | — | — | |
| PepsiCo Inc. | 14.52 | 13.84 | — | — | |
| Philip Morris International Inc. | — | — | — | — | |
| P/BV Ratio, Sector | |||||
| Food, Beverage & Tobacco | 13.34 | 12.88 | — | — | |
| P/BV Ratio, Industry | |||||
| Consumer Staples | 8.15 | 7.44 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 24,972,000,000 ÷ 1,418,158,363 = 17.61
3 Closing price as at the filing date of Keurig Dr Pepper Inc. Annual Report.
4 2021 Calculation
P/BV ratio = Share price ÷ BVPS
= 36.65 ÷ 17.61 = 2.08
5 Click competitor name to see calculations.
The financial data for the period ending December 31 from 2018 through 2021 show upward trends in share price, book value per share (BVPS), and price-to-book value (P/BV) ratio for the subject entity.
- Share Price
- The share price increased steadily each year, starting at $25.15 in 2018 and rising to $36.65 by the end of 2021. This represents a cumulative increase of approximately 45.7% over the four-year period, indicating growing market confidence or perceived value in the company.
- Book Value Per Share (BVPS)
- BVPS also demonstrated a consistent upward trajectory, moving from $16.03 in 2018 to $17.61 in 2021. While the increase is more modest compared to the share price, it reflects a steady accumulation of net assets on a per-share basis, improving the company's intrinsic value as measured by book accounting standards.
- Price-to-Book Value (P/BV) Ratio
- The P/BV ratio rose from 1.57 in 2018 to 2.08 in 2021. This increase suggests that the market's valuation of the company relative to its book value has expanded over time. A higher P/BV ratio indicates that investors are willing to pay a premium over the net asset value, which may be due to anticipated growth, improved profitability, or other qualitative factors influencing investor sentiment.
Overall, the data reveal a positive trend in both market valuation and underlying book value, with the market placing increasing premiums on the company's shares over the four-year horizon examined.