Intrinsic value of Dr Pepper Snapple Group - DPS

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$92.17

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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$92.17

 
Intrinsic value

$83.71

 
Up/down potential

-9%

 
Rating

hold

 
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*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of DPS stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 17.0

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  2.52
  2.10
  2.39
  2.65
  2.89
  3.10
  3.29
  3.46
  3.61
  3.75
  3.88
  3.99
  4.09
  4.18
  4.26
  4.34
  4.40
  4.46
  4.52
  4.56
  4.61
  4.65
  4.68
  4.71
  4.74
  4.77
  4.79
  4.81
  4.83
  4.85
  4.86
Revenue, $m
  6,440
  6,575
  6,732
  6,911
  7,110
  7,331
  7,572
  7,833
  8,116
  8,421
  8,747
  9,096
  9,468
  9,864
  10,285
  10,731
  11,203
  11,703
  12,232
  12,790
  13,379
  14,001
  14,657
  15,348
  16,076
  16,842
  17,649
  18,499
  19,393
  20,333
  21,322
Variable operating expenses, $m
 
  2,242
  2,289
  2,342
  2,401
  2,466
  2,537
  2,614
  2,698
  2,788
  2,884
  2,688
  2,798
  2,915
  3,039
  3,171
  3,311
  3,459
  3,615
  3,780
  3,954
  4,138
  4,331
  4,536
  4,751
  4,977
  5,216
  5,467
  5,731
  6,009
  6,301
Fixed operating expenses, $m
 
  2,981
  3,055
  3,132
  3,210
  3,290
  3,372
  3,457
  3,543
  3,632
  3,722
  3,816
  3,911
  4,009
  4,109
  4,212
  4,317
  4,425
  4,535
  4,649
  4,765
  4,884
  5,006
  5,131
  5,260
  5,391
  5,526
  5,664
  5,806
  5,951
  6,100
Total operating expenses, $m
  5,038
  5,223
  5,344
  5,474
  5,611
  5,756
  5,909
  6,071
  6,241
  6,420
  6,606
  6,504
  6,709
  6,924
  7,148
  7,383
  7,628
  7,884
  8,150
  8,429
  8,719
  9,022
  9,337
  9,667
  10,011
  10,368
  10,742
  11,131
  11,537
  11,960
  12,401
Operating income, $m
  1,402
  1,352
  1,388
  1,438
  1,500
  1,575
  1,662
  1,762
  1,875
  2,001
  2,141
  2,593
  2,759
  2,940
  3,136
  3,348
  3,575
  3,820
  4,081
  4,361
  4,660
  4,979
  5,319
  5,681
  6,065
  6,474
  6,908
  7,368
  7,856
  8,373
  8,921
EBITDA, $m
  1,626
  1,781
  1,820
  1,873
  1,939
  2,018
  2,111
  2,216
  2,335
  2,467
  2,612
  2,772
  2,946
  3,135
  3,339
  3,559
  3,796
  4,050
  4,322
  4,613
  4,924
  5,255
  5,608
  5,983
  6,382
  6,806
  7,255
  7,732
  8,238
  8,774
  9,341
Interest expense (income), $m
  117
  156
  146
  152
  159
  167
  176
  185
  195
  206
  218
  231
  245
  259
  275
  291
  309
  327
  347
  367
  389
  412
  437
  462
  489
  518
  548
  579
  613
  648
  684
Earnings before tax, $m
  1,283
  1,196
  1,242
  1,285
  1,341
  1,408
  1,487
  1,577
  1,680
  1,795
  1,922
  2,362
  2,515
  2,681
  2,862
  3,057
  3,267
  3,493
  3,735
  3,994
  4,271
  4,567
  4,882
  5,218
  5,576
  5,956
  6,360
  6,788
  7,243
  7,725
  8,236
Tax expense, $m
  434
  323
  335
  347
  362
  380
  401
  426
  454
  485
  519
  638
  679
  724
  773
  825
  882
  943
  1,008
  1,078
  1,153
  1,233
  1,318
  1,409
  1,505
  1,608
  1,717
  1,833
  1,956
  2,086
  2,224
Net income, $m
  847
  873
  907
  938
  979
  1,028
  1,085
  1,152
  1,227
  1,310
  1,403
  1,724
  1,836
  1,957
  2,089
  2,231
  2,385
  2,550
  2,726
  2,916
  3,118
  3,334
  3,564
  3,809
  4,070
  4,348
  4,643
  4,956
  5,288
  5,640
  6,013

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  1,787
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  9,791
  8,168
  8,363
  8,585
  8,833
  9,106
  9,406
  9,731
  10,083
  10,461
  10,866
  11,300
  11,762
  12,254
  12,776
  13,330
  13,917
  14,538
  15,195
  15,888
  16,620
  17,393
  18,207
  19,066
  19,970
  20,922
  21,925
  22,980
  24,090
  25,258
  26,486
Adjusted assets (=assets-cash), $m
  8,004
  8,168
  8,363
  8,585
  8,833
  9,106
  9,406
  9,731
  10,083
  10,461
  10,866
  11,300
  11,762
  12,254
  12,776
  13,330
  13,917
  14,538
  15,195
  15,888
  16,620
  17,393
  18,207
  19,066
  19,970
  20,922
  21,925
  22,980
  24,090
  25,258
  26,486
Revenue / Adjusted assets
  0.805
  0.805
  0.805
  0.805
  0.805
  0.805
  0.805
  0.805
  0.805
  0.805
  0.805
  0.805
  0.805
  0.805
  0.805
  0.805
  0.805
  0.805
  0.805
  0.805
  0.805
  0.805
  0.805
  0.805
  0.805
  0.805
  0.805
  0.805
  0.805
  0.805
  0.805
Average production assets, $m
  3,807
  3,886
  3,979
  4,084
  4,202
  4,332
  4,475
  4,630
  4,797
  4,977
  5,170
  5,376
  5,596
  5,830
  6,078
  6,342
  6,621
  6,917
  7,229
  7,559
  7,907
  8,275
  8,662
  9,071
  9,501
  9,954
  10,431
  10,933
  11,461
  12,017
  12,601
Working capital, $m
  1,685
  -92
  -94
  -97
  -100
  -103
  -106
  -110
  -114
  -118
  -122
  -127
  -133
  -138
  -144
  -150
  -157
  -164
  -171
  -179
  -187
  -196
  -205
  -215
  -225
  -236
  -247
  -259
  -271
  -285
  -299
Total debt, $m
  4,478
  4,172
  4,348
  4,547
  4,770
  5,017
  5,286
  5,579
  5,895
  6,236
  6,601
  6,991
  7,407
  7,849
  8,319
  8,818
  9,346
  9,905
  10,496
  11,120
  11,779
  12,475
  13,208
  13,980
  14,794
  15,651
  16,553
  17,503
  18,502
  19,553
  20,659
Total liabilities, $m
  7,657
  7,351
  7,527
  7,726
  7,949
  8,196
  8,465
  8,758
  9,074
  9,415
  9,780
  10,170
  10,586
  11,028
  11,498
  11,997
  12,525
  13,084
  13,675
  14,299
  14,958
  15,654
  16,387
  17,159
  17,973
  18,830
  19,732
  20,682
  21,681
  22,732
  23,838
Total equity, $m
  2,134
  817
  836
  858
  883
  911
  941
  973
  1,008
  1,046
  1,087
  1,130
  1,176
  1,225
  1,278
  1,333
  1,392
  1,454
  1,519
  1,589
  1,662
  1,739
  1,821
  1,907
  1,997
  2,092
  2,192
  2,298
  2,409
  2,526
  2,649
Total liabilities and equity, $m
  9,791
  8,168
  8,363
  8,584
  8,832
  9,107
  9,406
  9,731
  10,082
  10,461
  10,867
  11,300
  11,762
  12,253
  12,776
  13,330
  13,917
  14,538
  15,194
  15,888
  16,620
  17,393
  18,208
  19,066
  19,970
  20,922
  21,924
  22,980
  24,090
  25,258
  26,487
Debt-to-equity ratio
  2.098
  5.110
  5.200
  5.300
  5.400
  5.510
  5.620
  5.730
  5.850
  5.960
  6.070
  6.190
  6.300
  6.410
  6.510
  6.620
  6.720
  6.810
  6.910
  7.000
  7.090
  7.170
  7.250
  7.330
  7.410
  7.480
  7.550
  7.620
  7.680
  7.740
  7.800
Adjusted equity ratio
  0.043
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  847
  873
  907
  938
  979
  1,028
  1,085
  1,152
  1,227
  1,310
  1,403
  1,724
  1,836
  1,957
  2,089
  2,231
  2,385
  2,550
  2,726
  2,916
  3,118
  3,334
  3,564
  3,809
  4,070
  4,348
  4,643
  4,956
  5,288
  5,640
  6,013
Depreciation, amort., depletion, $m
  224
  429
  432
  435
  439
  444
  448
  454
  459
  465
  472
  179
  187
  194
  203
  211
  221
  231
  241
  252
  264
  276
  289
  302
  317
  332
  348
  364
  382
  401
  420
Funds from operations, $m
  841
  1,302
  1,339
  1,374
  1,418
  1,471
  1,534
  1,605
  1,686
  1,776
  1,875
  1,903
  2,022
  2,152
  2,292
  2,443
  2,605
  2,780
  2,967
  3,168
  3,382
  3,610
  3,853
  4,112
  4,387
  4,680
  4,990
  5,320
  5,670
  6,040
  6,433
Change in working capital, $m
  -98
  -2
  -2
  -2
  -3
  -3
  -3
  -4
  -4
  -4
  -5
  -5
  -5
  -6
  -6
  -6
  -7
  -7
  -7
  -8
  -8
  -9
  -9
  -10
  -10
  -11
  -11
  -12
  -13
  -13
  -14
Cash from operations, $m
  939
  1,291
  1,341
  1,376
  1,421
  1,474
  1,537
  1,609
  1,690
  1,780
  1,879
  1,908
  2,027
  2,157
  2,297
  2,449
  2,612
  2,787
  2,975
  3,175
  3,390
  3,618
  3,862
  4,121
  4,397
  4,690
  5,002
  5,332
  5,682
  6,053
  6,446
Maintenance CAPEX, $m
  0
  -127
  -130
  -133
  -136
  -140
  -144
  -149
  -154
  -160
  -166
  -172
  -179
  -187
  -194
  -203
  -211
  -221
  -231
  -241
  -252
  -264
  -276
  -289
  -302
  -317
  -332
  -348
  -364
  -382
  -401
New CAPEX, $m
  -182
  -79
  -93
  -105
  -118
  -130
  -142
  -155
  -167
  -180
  -193
  -206
  -220
  -234
  -249
  -264
  -279
  -295
  -312
  -330
  -348
  -367
  -387
  -408
  -430
  -453
  -477
  -502
  -528
  -556
  -584
Cash from investing activities, $m
  -189
  -206
  -223
  -238
  -254
  -270
  -286
  -304
  -321
  -340
  -359
  -378
  -399
  -421
  -443
  -467
  -490
  -516
  -543
  -571
  -600
  -631
  -663
  -697
  -732
  -770
  -809
  -850
  -892
  -938
  -985
Free cash flow, $m
  750
  1,085
  1,119
  1,138
  1,167
  1,204
  1,250
  1,305
  1,368
  1,440
  1,521
  1,529
  1,628
  1,737
  1,855
  1,983
  2,121
  2,271
  2,432
  2,604
  2,789
  2,987
  3,199
  3,424
  3,665
  3,921
  4,193
  4,482
  4,789
  5,116
  5,462
Issuance/(repayment) of debt, $m
  1,050
  -296
  176
  200
  223
  246
  269
  293
  316
  340
  365
  390
  416
  443
  470
  499
  528
  559
  591
  624
  659
  695
  733
  773
  814
  857
  902
  950
  999
  1,051
  1,106
Issuance/(repurchase) of shares, $m
  -505
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  516
  -296
  176
  200
  223
  246
  269
  293
  316
  340
  365
  390
  416
  443
  470
  499
  528
  559
  591
  624
  659
  695
  733
  773
  814
  857
  902
  950
  999
  1,051
  1,106
Total cash flow (excl. dividends), $m
  1,262
  789
  1,294
  1,338
  1,390
  1,450
  1,520
  1,598
  1,684
  1,780
  1,886
  1,920
  2,044
  2,179
  2,325
  2,481
  2,650
  2,830
  3,023
  3,229
  3,448
  3,683
  3,932
  4,197
  4,479
  4,778
  5,095
  5,432
  5,789
  6,167
  6,567
Retained Cash Flow (-), $m
  49
  -460
  -20
  -22
  -25
  -27
  -30
  -33
  -35
  -38
  -41
  -43
  -46
  -49
  -52
  -55
  -59
  -62
  -66
  -69
  -73
  -77
  -81
  -86
  -90
  -95
  -100
  -106
  -111
  -117
  -123
Prev. year cash balance distribution, $m
 
  1,777
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  2,106
  1,275
  1,316
  1,365
  1,423
  1,490
  1,565
  1,649
  1,743
  1,845
  1,876
  1,998
  2,130
  2,273
  2,426
  2,591
  2,768
  2,957
  3,159
  3,375
  3,605
  3,850
  4,111
  4,388
  4,682
  4,995
  5,326
  5,678
  6,050
  6,444
Discount rate, %
 
  6.00
  6.30
  6.62
  6.95
  7.29
  7.66
  8.04
  8.44
  8.86
  9.31
  9.77
  10.26
  10.78
  11.31
  11.88
  12.47
  13.10
  13.75
  14.44
  15.16
  15.92
  16.72
  17.55
  18.43
  19.35
  20.32
  21.33
  22.40
  23.52
  24.70
PV of cash for distribution, $m
 
  1,987
  1,128
  1,086
  1,044
  1,001
  957
  911
  862
  811
  758
  673
  619
  563
  507
  450
  395
  342
  291
  244
  201
  162
  128
  100
  76
  56
  41
  29
  20
  13
  9
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Dr Pepper Snapple Group, Inc. operates as a brand owner, manufacturer, and distributor of non-alcoholic beverages in the United States, Mexico, and Canada. The company operates through three segments: Beverage Concentrates, Packaged Beverages, and Latin America Beverages. It offers flavored carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs), including ready-to-drink teas, juices, juice drinks, water, and mixers, as well as manufactures and sells Mott's apple sauces. The company sells its flavored CSD products primarily under the Dr Pepper, Canada Dry, Pe├▒afiel, Squirt, 7UP, Crush, A&W, Sunkist soda, and Schweppes; and NCB products primarily under the Snapple, Hawaiian Punch, Mott's, Clamato, and Bai Brands. It serves bottlers, distributors, and retailers. Dr Pepper Snapple Group, Inc. was incorporated in 2007 and is headquartered in Plano, Texas.

FINANCIAL RATIOS  of  Dr Pepper Snapple Group (DPS)

Valuation Ratios
P/E Ratio 9
Price to Sales 1.2
Price to Book 3.6
Price to Tangible Book
Price to Cash Flow 8.2
Price to Free Cash Flow 10.1
Growth Rates
Sales Growth Rate 2.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 1.1%
Cap. Spend. - 3 Yr. Gr. Rate -0.2%
Financial Strength
Quick Ratio 179
Current Ratio 0.1
LT Debt to Equity 209.4%
Total Debt to Equity 209.8%
Interest Coverage 12
Management Effectiveness
Return On Assets 9.9%
Ret/ On Assets - 3 Yr. Avg. 9.6%
Return On Total Capital 13.9%
Ret/ On T. Cap. - 3 Yr. Avg. 14.3%
Return On Equity 39.2%
Return On Equity - 3 Yr. Avg. 34.7%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 59.9%
Gross Margin - 3 Yr. Avg. 59.5%
EBITDA Margin 25.2%
EBITDA Margin - 3 Yr. Avg. 24%
Operating Margin 21.8%
Oper. Margin - 3 Yr. Avg. 20.6%
Pre-Tax Margin 19.9%
Pre-Tax Margin - 3 Yr. Avg. 18.8%
Net Profit Margin 13.2%
Net Profit Margin - 3 Yr. Avg. 12.3%
Effective Tax Rate 33.8%
Eff/ Tax Rate - 3 Yr. Avg. 34.6%
Payout Ratio 45.6%

DPS stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the DPS stock intrinsic value calculation we used $6440 million for the last fiscal year's total revenue generated by Dr Pepper Snapple Group. The default revenue input number comes from 2016 income statement of Dr Pepper Snapple Group. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our DPS stock valuation model: a) initial revenue growth rate of 2.1% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 6%, whose default value for DPS is calculated based on our internal credit rating of Dr Pepper Snapple Group, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Dr Pepper Snapple Group.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of DPS stock the variable cost ratio is equal to 34.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $2908 million in the base year in the intrinsic value calculation for DPS stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Dr Pepper Snapple Group.

Corporate tax rate of 27% is the nominal tax rate for Dr Pepper Snapple Group. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the DPS stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for DPS are equal to 59.1%.

Life of production assets of 30.3 years is the average useful life of capital assets used in Dr Pepper Snapple Group operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for DPS is equal to -1.4%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $2134 million for Dr Pepper Snapple Group - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 184.845 million for Dr Pepper Snapple Group is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Dr Pepper Snapple Group at the current share price and the inputted number of shares is $17.0 billion.


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COMPANY NEWS

▶ How Does PepsiCo Make Money?   [09:07AM  Investopedia]
▶ Dr. Pepper Snapple Beats 1Q Expectations   [07:48AM  TheStreet.com]
▶ Dr Pepper Snapple Group posts 1Q profit   [07:20AM  Associated Press]
▶ Coca-Cola, PepsiCo, Dr Pepper Snapple: A Valuation Showdown?   [Apr-03-17 10:39AM  Market Realist]
▶ 3 Top Dividend Stocks in Soda   [Apr-01-17 05:00PM  Motley Fool]
▶ PepsiCo, Peers, and the Question of Margins   [Mar-31-17 10:36AM  Market Realist]
▶ How Coca-Cola and PepsiCo Hope to Save Soda   [07:37AM  Market Realist]
▶ Coca-Colas and PepsiCos Revenues: Fizz or Flat in 2017?   [Mar-30-17 05:37PM  Market Realist]
▶ Coca-Cola (KO) Diversifies with Unilever's AdeS Acquisition   [Mar-29-17 08:56AM  at Investopedia]
▶ Jefferies Upgrades Dr Pepper Snapple to Buy   [Mar-06-17 12:43PM  at Investopedia]
▶ Dr Pepper Snapple Misses Q4 Earnings   [12:45PM  at TheStreet]
▶ [$$] Dr Pepper Snapple Sees Peso Woes Pressuring Profit   [09:37AM  at The Wall Street Journal]
▶ New 7UP Campaign Mixes It Up - Literally   [12:03PM  PR Newswire]
▶ Dr Pepper Snapple completes $2B buy of health drink brand   [Feb-01-17 03:45PM  at bizjournals.com]
Stock chart of DPS Financial statements of DPS
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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