Keurig Dr Pepper’s 14x Forward P/E and Double-Digit EPS Growth Outshine Coca-Cola’s 26x Multiple

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2▲1 ▼1Impact / 5
Summary · why it matters

Keurig Dr Pepper offers a more compelling valuation than Coca-Cola, trading at 14 times forward earnings with low-double-digit constant currency EPS growth, compared to Coca-Cola’s 26 times for 8-9% growth. Both stocks are up roughly 22% year-to-date, but KDP’s planned split into two pure-play companies targets around $400 million in cost savings, while its GHOST energy brand aims to capture over 10% market share. Barclays sees KDP as potentially 40% undervalued post-financing, though $25.9 billion in debt and nearly doubled interest expense to $281 million add execution risk. Coca-Cola posted $12.47 billion in revenue, up 12.1% year-over-year, driven by 13% volume growth in Coca-Cola Zero Sugar, but global unit case volume rose only 3% and management flagged consumer strain among lower-income households.

Impact on assets 4

Consumer Staples± Mixed · 3 stocks
Keurig Dr Pepper Inc
KDP
▲ PositiveCapitalrelevance

KDP trades at 14x forward P/E with double-digit EPS growth, planned split targets $400M cost savings, and Barclays sees 40% undervaluation.

The Coca-Cola Company
KO
▼ NegativeCapitalrelevance

Coca-Cola trades at 26x forward P/E with only 8-9% EPS growth, and management flagged consumer strain among lower-income households.

Financials▲ · 1 stocks
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