Keurig Dr Pepper Inc (KDP) is slightly undervalued and Coca-Cola Co (KO) is overvalued.
Against our estimates of intrinsic value, KDP trades at the wider discount: a margin of safety of +14%, against -80% for KO.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 7.1% (average of 3 methods) values the shares at $36.83; the price of $31.51 is 14% below that value, and 83% of that value comes from beyond year five.
Leak Score 33/100 on 10 of 12 signals
Discounting its cash flows at 7.4% (average of 3 methods) values the shares at $49.15; the price of $88.61 is 80% above that value, and 82% of that value comes from beyond year five.
Leak Score 65/100 on 10 of 12 signals
| Metric | KDP | KO |
|---|---|---|
| Verdict | Slightly undervalued | Overvalued |
| Price | $31.51 | $88.61 |
| Intrinsic value | $36.83 | $49.15 |
| Margin of safety | +14% | -80% |
| Leak Score | 33/100 (10/12) | 65/100 (10/12) |
| Market cap | $42.9B | $381.2B |
| Revenue growth, 5 years | 7.4% | 7.9% |
| Operating margin | 16.9% | 31.9% |
| Net margin | 6.7% | 28.3% |
| Return on equity | 5.7% | 44.2% |
| Debt to equity | 1.50 | 1.20 |
| P/E | 31.9x | 26.7x |
| Forward P/E | 12.4x | 25.1x |
| P/B | 1.7x | 10.6x |
| Dividend yield | 3.0% | 2.5% |