Keurig Dr Pepper Inc (KDP) is slightly undervalued and PepsiCo Inc (PEP) is slightly overvalued.
Against our estimates of intrinsic value, KDP trades at the wider discount: a margin of safety of +14%, against -13% for PEP.
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 7.2% (average of 3 methods) values the shares at $115.59; the price of $131.19 is 13% above that value, and 82% of that value comes from beyond year five.
Leak Score 68/100 on 10 of 12 signals
| Metric | KDP | PEP |
|---|---|---|
| Verdict | Slightly undervalued | Slightly overvalued |
| Price | $31.51 | $131.19 |
| Intrinsic value | $36.83 | $115.59 |
| Margin of safety | +14% | -13% |
| Leak Score | 33/100 (10/12) | 68/100 (10/12) |
| Market cap | $42.9B | $179.1B |
| Revenue growth, 5 years | 7.4% | 5.9% |
| Operating margin | 16.9% | 15.6% |
| Net margin | 6.7% | 10.8% |
| Return on equity | 5.7% | 51.6% |
| Debt to equity | 1.50 | 2.41 |
| P/E | 31.9x | 17.2x |
| Forward P/E | 12.4x | 14.6x |
| P/B | 1.7x | 8.1x |
| Dividend yield | 3.0% | 4.5% |