Question 1

What is Keurig Dr Pepper Inc.'s WACC?

Accepted Answer

Keurig Dr Pepper Inc. (KDP) has a Weighted Average Cost of Capital (WACC) of 4.80%. This is calculated using a Cost of Equity of 6.80% (via CAPM with a beta of 0.33) and a pre-tax Cost of Debt of 2.00%, with an equity weight of 61.64% in the capital structure.

Question 2

Is Keurig Dr Pepper Inc.'s WACC high or low?

Accepted Answer

Keurig Dr Pepper Inc.'s WACC of 4.80% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is Keurig Dr Pepper Inc.'s WACC calculated?

Accepted Answer

Keurig Dr Pepper Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 6.80% is derived from the CAPM model using a beta of 0.33. The pre-tax Cost of Debt (Rd) is 2.00%. The capital structure is 61.64% equity and 38.36% debt.

Keurig Dr Pepper Inc. (KDP) — WACC 分析

WACC 构成

解读

Keurig Dr Pepper Inc.（KDP）WACC：4.80%

WACC计算器

Keurig Dr Pepper Inc.（KDP） WACC 解读

KDP 公司分析

KDP DCF 估值

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