Intrinsic value of Dr Pepper Snapple Group - DPS

Previous Close

$91.89

  Intrinsic Value

$83.56

stock screener

  Rating & Target

hold

-9%

  Value-price divergence*

+38%

Previous close

$91.89

 
Intrinsic value

$83.56

 
Up/down potential

-9%

 
Rating

hold

 
Value-price divergence*

+38%

*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 16.9

 

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
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  6,440
  6,569
  6,720
  6,893
  7,086
  7,301
  7,537
  7,794
  8,072
  8,371
  8,692
  9,036
  9,403
  9,793
  10,208
  10,648
  11,115
  11,609
  12,131
  12,683
  13,266
  13,881
  14,529
  15,213
  15,933
  16,692
  17,490
  18,331
  19,216
  20,146
  21,125
Variable operating expenses, $m
 
  2,241
  2,285
  2,336
  2,394
  2,457
  2,527
  2,603
  2,685
  2,773
  2,868
  2,670
  2,779
  2,894
  3,017
  3,147
  3,285
  3,431
  3,585
  3,748
  3,920
  4,102
  4,294
  4,496
  4,709
  4,933
  5,169
  5,417
  5,679
  5,954
  6,243
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
  5,222
  5,340
  5,468
  5,604
  5,747
  5,899
  6,060
  6,228
  6,405
  6,590
  6,486
  6,690
  6,903
  7,126
  7,359
  7,602
  7,856
  8,120
  8,397
  8,685
  8,986
  9,300
  9,627
  9,969
  10,324
  10,695
  11,081
  11,485
  11,905
  12,343
Operating income, $m
  1,402
  1,348
  1,379
  1,425
  1,483
  1,554
  1,638
  1,734
  1,844
  1,966
  2,102
  2,550
  2,713
  2,890
  3,082
  3,290
  3,513
  3,753
  4,011
  4,286
  4,581
  4,895
  5,229
  5,586
  5,965
  6,368
  6,795
  7,250
  7,731
  8,242
  8,782
EBITDA, $m
  1,626
  1,776
  1,811
  1,860
  1,922
  1,997
  2,086
  2,187
  2,302
  2,430
  2,572
  2,728
  2,898
  3,083
  3,283
  3,500
  3,732
  3,982
  4,250
  4,536
  4,842
  5,168
  5,516
  5,885
  6,279
  6,696
  7,140
  7,611
  8,110
  8,638
  9,198
Interest expense (income), $m
  117
  156
  162
  168
  175
  183
  192
  202
  212
  224
  236
  250
  264
  279
  295
  313
  331
  350
  371
  393
  416
  440
  465
  492
  521
  550
  582
  615
  650
  687
  725
Earnings before tax, $m
  1,283
  1,191
  1,218
  1,257
  1,308
  1,371
  1,446
  1,533
  1,631
  1,742
  1,865
  2,300
  2,449
  2,611
  2,787
  2,977
  3,182
  3,403
  3,640
  3,894
  4,165
  4,455
  4,764
  5,094
  5,444
  5,817
  6,213
  6,634
  7,081
  7,555
  8,057
Tax expense, $m
  434
  322
  329
  339
  353
  370
  390
  414
  440
  470
  504
  621
  661
  705
  752
  804
  859
  919
  983
  1,051
  1,125
  1,203
  1,286
  1,375
  1,470
  1,571
  1,678
  1,791
  1,912
  2,040
  2,175
Net income, $m
  847
  870
  889
  918
  955
  1,001
  1,056
  1,119
  1,191
  1,272
  1,362
  1,679
  1,788
  1,906
  2,034
  2,173
  2,323
  2,484
  2,657
  2,842
  3,040
  3,252
  3,478
  3,718
  3,974
  4,247
  4,536
  4,843
  5,169
  5,515
  5,882

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
  8,949
  9,155
  9,390
  9,655
  9,947
  10,268
  10,618
  10,997
  11,405
  11,842
  12,310
  12,810
  13,342
  13,907
  14,507
  15,143
  15,816
  16,528
  17,280
  18,074
  18,911
  19,795
  20,726
  21,707
  22,741
  23,829
  24,974
  26,179
  27,447
  28,781
Adjusted assets (=assets-cash), $m
  8,004
  8,949
  9,155
  9,390
  9,655
  9,947
  10,268
  10,618
  10,997
  11,405
  11,842
  12,310
  12,810
  13,342
  13,907
  14,507
  15,143
  15,816
  16,528
  17,280
  18,074
  18,911
  19,795
  20,726
  21,707
  22,741
  23,829
  24,974
  26,179
  27,447
  28,781
Revenue / Adjusted assets
  0.805
  0.734
  0.734
  0.734
  0.734
  0.734
  0.734
  0.734
  0.734
  0.734
  0.734
  0.734
  0.734
  0.734
  0.734
  0.734
  0.734
  0.734
  0.734
  0.734
  0.734
  0.734
  0.734
  0.734
  0.734
  0.734
  0.734
  0.734
  0.734
  0.734
  0.734
Average production assets, $m
  3,807
  3,882
  3,971
  4,074
  4,188
  4,315
  4,454
  4,606
  4,770
  4,947
  5,137
  5,340
  5,557
  5,788
  6,033
  6,293
  6,569
  6,861
  7,170
  7,496
  7,840
  8,204
  8,587
  8,991
  9,417
  9,865
  10,337
  10,834
  11,356
  11,906
  12,485
Working capital, $m
  1,685
  -92
  -94
  -96
  -99
  -102
  -106
  -109
  -113
  -117
  -122
  -127
  -132
  -137
  -143
  -149
  -156
  -163
  -170
  -178
  -186
  -194
  -203
  -213
  -223
  -234
  -245
  -257
  -269
  -282
  -296
Total debt, $m
  4,478
  4,616
  4,795
  5,000
  5,230
  5,485
  5,765
  6,069
  6,399
  6,754
  7,136
  7,543
  7,979
  8,442
  8,934
  9,457
  10,011
  10,597
  11,217
  11,872
  12,563
  13,293
  14,062
  14,873
  15,728
  16,628
  17,576
  18,573
  19,623
  20,727
  21,889
Total liabilities, $m
  7,657
  7,795
  7,974
  8,179
  8,409
  8,664
  8,944
  9,248
  9,578
  9,933
  10,315
  10,722
  11,158
  11,621
  12,113
  12,636
  13,190
  13,776
  14,396
  15,051
  15,742
  16,472
  17,241
  18,052
  18,907
  19,807
  20,755
  21,752
  22,802
  23,906
  25,068
Total equity, $m
  2,134
  1,154
  1,181
  1,211
  1,245
  1,283
  1,325
  1,370
  1,419
  1,471
  1,528
  1,588
  1,652
  1,721
  1,794
  1,871
  1,953
  2,040
  2,132
  2,229
  2,331
  2,440
  2,554
  2,674
  2,800
  2,934
  3,074
  3,222
  3,377
  3,541
  3,713
Total liabilities and equity, $m
  9,791
  8,949
  9,155
  9,390
  9,654
  9,947
  10,269
  10,618
  10,997
  11,404
  11,843
  12,310
  12,810
  13,342
  13,907
  14,507
  15,143
  15,816
  16,528
  17,280
  18,073
  18,912
  19,795
  20,726
  21,707
  22,741
  23,829
  24,974
  26,179
  27,447
  28,781
Debt-to-equity ratio
  2.098
  4.000
  4.060
  4.130
  4.200
  4.270
  4.350
  4.430
  4.510
  4.590
  4.670
  4.750
  4.830
  4.900
  4.980
  5.050
  5.120
  5.190
  5.260
  5.330
  5.390
  5.450
  5.510
  5.560
  5.620
  5.670
  5.720
  5.770
  5.810
  5.850
  5.900
Adjusted equity ratio
  0.043
  0.129
  0.129
  0.129
  0.129
  0.129
  0.129
  0.129
  0.129
  0.129
  0.129
  0.129
  0.129
  0.129
  0.129
  0.129
  0.129
  0.129
  0.129
  0.129
  0.129
  0.129
  0.129
  0.129
  0.129
  0.129
  0.129
  0.129
  0.129
  0.129
  0.129

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  847
  870
  889
  918
  955
  1,001
  1,056
  1,119
  1,191
  1,272
  1,362
  1,679
  1,788
  1,906
  2,034
  2,173
  2,323
  2,484
  2,657
  2,842
  3,040
  3,252
  3,478
  3,718
  3,974
  4,247
  4,536
  4,843
  5,169
  5,515
  5,882
Depreciation, amort., depletion, $m
  224
  429
  432
  435
  439
  443
  448
  453
  458
  464
  471
  178
  185
  193
  201
  210
  219
  229
  239
  250
  261
  273
  286
  300
  314
  329
  345
  361
  379
  397
  416
Funds from operations, $m
  841
  1,298
  1,321
  1,353
  1,394
  1,444
  1,503
  1,572
  1,649
  1,736
  1,832
  1,857
  1,973
  2,099
  2,236
  2,383
  2,542
  2,713
  2,896
  3,092
  3,302
  3,526
  3,764
  4,018
  4,288
  4,575
  4,880
  5,204
  5,548
  5,912
  6,298
Change in working capital, $m
  -98
  -2
  -2
  -2
  -3
  -3
  -3
  -4
  -4
  -4
  -4
  -5
  -5
  -5
  -6
  -6
  -7
  -7
  -7
  -8
  -8
  -9
  -9
  -10
  -10
  -11
  -11
  -12
  -12
  -13
  -14
Cash from operations, $m
  939
  1,300
  1,323
  1,355
  1,396
  1,447
  1,507
  1,575
  1,653
  1,740
  1,837
  1,862
  1,978
  2,104
  2,241
  2,389
  2,549
  2,720
  2,903
  3,100
  3,310
  3,534
  3,773
  4,028
  4,298
  4,586
  4,892
  5,216
  5,560
  5,925
  6,311
Maintenance CAPEX, $m
  0
  -127
  -129
  -132
  -136
  -140
  -144
  -148
  -154
  -159
  -165
  -171
  -178
  -185
  -193
  -201
  -210
  -219
  -229
  -239
  -250
  -261
  -273
  -286
  -300
  -314
  -329
  -345
  -361
  -379
  -397
New CAPEX, $m
  -182
  -76
  -89
  -102
  -115
  -127
  -139
  -152
  -164
  -177
  -190
  -203
  -217
  -231
  -245
  -260
  -276
  -292
  -309
  -326
  -344
  -363
  -383
  -404
  -426
  -448
  -472
  -497
  -523
  -550
  -578
Cash from investing activities, $m
  -189
  -203
  -218
  -234
  -251
  -267
  -283
  -300
  -318
  -336
  -355
  -374
  -395
  -416
  -438
  -461
  -486
  -511
  -538
  -565
  -594
  -624
  -656
  -690
  -726
  -762
  -801
  -842
  -884
  -929
  -975
Free cash flow, $m
  750
  1,098
  1,104
  1,121
  1,146
  1,180
  1,224
  1,275
  1,335
  1,404
  1,482
  1,488
  1,583
  1,688
  1,803
  1,928
  2,063
  2,209
  2,366
  2,535
  2,716
  2,909
  3,116
  3,337
  3,573
  3,824
  4,091
  4,375
  4,676
  4,996
  5,336
Issuance/(repayment) of debt, $m
  1,050
  148
  179
  205
  230
  255
  280
  305
  330
  355
  381
  408
  435
  463
  492
  523
  554
  586
  620
  655
  692
  730
  770
  811
  855
  900
  948
  998
  1,050
  1,104
  1,162
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
  148
  179
  205
  230
  255
  280
  305
  330
  355
  381
  408
  435
  463
  492
  523
  554
  586
  620
  655
  692
  730
  770
  811
  855
  900
  948
  998
  1,050
  1,104
  1,162
Total cash flow (excl. dividends), $m
  1,262
  1,246
  1,283
  1,326
  1,376
  1,435
  1,503
  1,580
  1,665
  1,759
  1,863
  1,895
  2,019
  2,152
  2,296
  2,450
  2,617
  2,795
  2,986
  3,190
  3,407
  3,639
  3,886
  4,148
  4,428
  4,724
  5,038
  5,372
  5,726
  6,101
  6,498
Retained Cash Flow (-), $m
  49
  -25
  -27
  -30
  -34
  -38
  -41
  -45
  -49
  -53
  -56
  -60
  -64
  -69
  -73
  -77
  -82
  -87
  -92
  -97
  -102
  -108
  -114
  -120
  -127
  -133
  -140
  -148
  -155
  -164
  -172
Prev. year cash balance distribution, $m
 
  1,005
  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
 
  2,225
  1,257
  1,295
  1,342
  1,398
  1,462
  1,535
  1,616
  1,707
  1,807
  1,835
  1,954
  2,083
  2,223
  2,373
  2,535
  2,708
  2,894
  3,093
  3,305
  3,531
  3,772
  4,028
  4,301
  4,591
  4,898
  5,224
  5,570
  5,937
  6,326
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
 
  2,099
  1,112
  1,069
  1,026
  983
  939
  893
  845
  795
  742
  658
  605
  551
  496
  441
  386
  334
  285
  238
  196
  159
  126
  98
  74
  55
  40
  28
  19
  13
  8
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, Peñafiel, 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 19.9
Price to Sales 2.6
Price to Book 7.9
Price to Tangible Book
Price to Cash Flow 17.9
Price to Free Cash Flow 22.2
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% 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 183.426 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 $16.9 billion.

RELATED COMPANIES Price Int.Val. Rating
PEP PepsiCo 116.45 57.05  sell
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FIZZ National Bever 103.24 102.10  hold
COT Cott 15.69 21.73  str.buy
COKE Coca-Cola Bott 238.09 690.33  str.buy

COMPANY NEWS

▶ S&P 500 stocks to find value   [Jul-26-17 12:43PM  CNBC Videos]
▶ Will Dr Pepper Snapples 2Q17 Earnings Surpass Expectations?   [Jul-24-17 02:36PM  Market Realist]
▶ Why sparkling water sales could spike by 20% in 2017   [Jul-23-17 08:29AM  Yahoo Finance]
▶ Will Coca-Colas 2Q17 Results Boost Its Stock Price?   [Jul-21-17 12:30PM  Market Realist]
▶ Soda is the new cigarette: Cowen's Vivien Azer   [Jul-11-17 03:48PM  CNBC Videos]
▶ Where Does PepsiCos Valuation Stand ahead of 2Q Results?   [Jul-07-17 10:36AM  Market Realist]
▶ The Latest Celebrity Trend: Weird Food   [Jul-01-17 10:00AM  Fortune]
▶ Dr Pepper Snapple names CEO of healthy drink brand   [12:45PM  American City Business Journals]
▶ Why BMO Capital Markets Is Downgrading Beverage Stocks   [Jun-10-17 08:45AM  24/7 Wall St.]
▶ Today's call of the day: Soda   [02:02PM  CNBC Videos]
▶ PepsiCo Eyes Acquiring Vita Coco   [12:28PM  GuruFocus.com]
▶ When Viral Marketing Backfires   [Jun-01-17 04:41PM  The Wall Street Journal]
▶ Consumer Companies Analyst Ratings for May 1519, 2017   [May-22-17 05:06PM  Market Realist]
▶ Dr Pepper Snapple Group Declares Quarterly Dividend   [May-17-17 06:09PM  PR Newswire]
▶ Lets Play: High School Makeover Challenge   [May-15-17 01:38PM  GlobeNewswire]
▶ Monster Beverages Valuation: Impact of 1Q17 Results   [May-11-17 09:07AM  Market Realist]
▶ How Dr Pepper Snapples 1Q17 Results Impacted Its Valuation   [May-03-17 09:06AM  Market Realist]
▶ PepsiCos Segments That Impressed in 1Q17   [07:39AM  Market Realist]
▶ Dr Pepper Starts to See Flaws in 2016 Bai Buy   [May-01-17 11:27AM  Investopedia]
▶ 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]
Stock chart of DPS Financial statements of DPS Annual reports 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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