Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Keurig Dr Pepper Inc., EBITDA calculation
US$ in millions
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).
A consistent upward trajectory is observed across all reported earnings metrics from 2018 through 2021. The most significant growth occurred between 2018 and 2019, followed by a period of relative stabilization in 2020 and a subsequent strong acceleration in 2021.
- EBITDA Growth Trend
- Earnings before interest, tax, depreciation and amortization grew from US$ 1,597 million in 2018 to US$ 3,842 million by 2021. This represents a total increase of approximately 140% over the period, with the most substantial single-year expansion occurring between 2018 and 2019, where the value increased by roughly 77%.
- Comparative Profitability Analysis
- Net income attributable to KDP expanded from US$ 586 million in 2018 to US$ 2,146 million in 2021, reflecting a growth rate that exceeds that of EBITDA. This indicates an improvement in the conversion of operational earnings into bottom-line profit over the four-year span.
- Operational Expenditure Patterns
- The spread between EBIT and EBITDA remained relatively stable, moving from US$ 354 million in 2018 to US$ 544 million in 2021. The steady nature of this difference suggests that depreciation and amortization expenses have scaled predictably in relation to the company's operational growth.
- Earnings Stability
- A plateau is observed during the 2019 to 2020 period, where EBITDA increased only marginally from US$ 2,832 million to US$ 2,852 million. However, this stagnation was temporary, as 2021 saw a robust recovery with EBITDA rising to US$ 3,842 million.
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Enterprise Value to EBITDA Ratio, Current
Keurig Dr Pepper Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 66,533) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 3,842) |
| Valuation Ratio | |
| EV/EBITDA | 17.32 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Coca-Cola Co. | 23.72 |
| Mondelēz International Inc. | 19.93 |
| PepsiCo Inc. | 15.08 |
| Philip Morris International Inc. | 19.81 |
| EV/EBITDA, Sector | |
| Food, Beverage & Tobacco | 21.78 |
| EV/EBITDA, Industry | |
| Consumer Staples | 25.23 |
Based on: 10-K (reporting date: 2021-12-31).
1 Click competitor name to see calculations.
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
Keurig Dr Pepper Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Enterprise value (EV)1 | 63,990) | 57,004) | 54,362) | 51,224) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 3,842) | 2,852) | 2,832) | 1,597) | |
| Valuation Ratio | |||||
| EV/EBITDA3 | 16.66 | 19.99 | 19.20 | 32.08 | |
| Benchmarks | |||||
| EV/EBITDA, Competitors4 | |||||
| Coca-Cola Co. | 19.52 | — | — | — | |
| Mondelēz International Inc. | 15.62 | — | — | — | |
| PepsiCo Inc. | 18.42 | — | — | — | |
| Philip Morris International Inc. | 13.64 | — | — | — | |
| EV/EBITDA, Sector | |||||
| Food, Beverage & Tobacco | 17.05 | — | — | — | |
| EV/EBITDA, Industry | |||||
| Consumer Staples | 15.65 | — | — | — | |
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).
3 2021 Calculation
EV/EBITDA = EV ÷ EBITDA
= 63,990 ÷ 3,842 = 16.66
4 Click competitor name to see calculations.
The financial trajectory between 2018 and 2021 is characterized by a consistent expansion in enterprise value and a substantial increase in operational earnings, which collectively resulted in a significant compression of the valuation multiple.
- Enterprise Value (EV)
- A steady upward trend is observed, with the enterprise value increasing from 51,224 million USD in 2018 to 63,990 million USD by the end of 2021. This represents a continuous growth in the total market valuation of the entity over the analyzed four-year period.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA experienced substantial growth, most notably between 2018 and 2019, where it rose from 1,597 million USD to 2,832 million USD. After maintaining a stable level of approximately 2,852 million USD in 2020, a further increase to 3,842 million USD was recorded in 2021, signaling a marked improvement in core operational profitability.
- EV/EBITDA Ratio
- The valuation multiple exhibits a clear downward trend. The ratio declined sharply from 32.08 in 2018 to 19.20 in 2019, experienced a marginal increase to 19.99 in 2020, and ultimately fell to 16.66 by 2021. This reduction indicates that EBITDA growth significantly outpaced the growth in enterprise value, suggesting that the company's valuation became more aligned with its underlying cash-flow generation capabilities over time.
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