Intrinsic value of Dr Pepper Snapple Group - DPS

Previous Close

$123.66

  Intrinsic Value

$74.32

stock screener

  Rating & Target

sell

-40%

Previous close

$123.66

 
Intrinsic value

$74.32

 
Up/down potential

-40%

 
Rating

sell

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 2017), $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 22.5

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   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
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  3.90
  4.01
  4.11
  4.20
  4.28
  4.35
  4.42
  4.47
  4.53
  4.57
  4.62
  4.65
  4.69
  4.72
  4.75
  4.77
  4.80
  4.82
  4.83
  4.85
  4.87
  4.88
  4.89
  4.90
  4.91
  4.92
  4.93
  4.94
  4.94
  4.95
Revenue, $m
  6,951
  7,230
  7,527
  7,843
  8,178
  8,534
  8,911
  9,309
  9,731
  10,176
  10,646
  11,141
  11,664
  12,214
  12,794
  13,405
  14,048
  14,725
  15,436
  16,185
  16,973
  17,801
  18,672
  19,587
  20,550
  21,561
  22,623
  23,740
  24,914
  26,146
Variable operating expenses, $m
  5,372
  5,558
  5,756
  5,967
  6,191
  6,429
  6,680
  6,946
  7,227
  7,524
  7,103
  7,434
  7,783
  8,150
  8,537
  8,945
  9,374
  9,825
  10,300
  10,800
  11,325
  11,878
  12,459
  13,070
  13,712
  14,387
  15,096
  15,841
  16,624
  17,446
Fixed operating expenses, $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
Total operating expenses, $m
  5,372
  5,558
  5,756
  5,967
  6,191
  6,429
  6,680
  6,946
  7,227
  7,524
  7,103
  7,434
  7,783
  8,150
  8,537
  8,945
  9,374
  9,825
  10,300
  10,800
  11,325
  11,878
  12,459
  13,070
  13,712
  14,387
  15,096
  15,841
  16,624
  17,446
Operating income, $m
  1,579
  1,671
  1,770
  1,875
  1,987
  2,105
  2,231
  2,363
  2,504
  2,652
  3,542
  3,707
  3,881
  4,064
  4,257
  4,460
  4,674
  4,900
  5,136
  5,386
  5,648
  5,923
  6,213
  6,518
  6,838
  7,174
  7,528
  7,899
  8,290
  8,700
EBITDA, $m
  3,109
  3,234
  3,367
  3,508
  3,658
  3,818
  3,986
  4,165
  4,353
  4,552
  4,762
  4,984
  5,218
  5,464
  5,723
  5,997
  6,284
  6,587
  6,905
  7,240
  7,593
  7,963
  8,353
  8,762
  9,193
  9,645
  10,121
  10,620
  11,145
  11,696
Interest expense (income), $m
  117
  242
  257
  274
  292
  312
  332
  354
  377
  401
  427
  454
  483
  513
  545
  579
  614
  651
  690
  732
  775
  821
  869
  919
  973
  1,029
  1,087
  1,149
  1,214
  1,282
  1,354
Earnings before tax, $m
  1,337
  1,414
  1,496
  1,583
  1,675
  1,773
  1,877
  1,987
  2,102
  2,225
  3,088
  3,224
  3,368
  3,519
  3,679
  3,847
  4,023
  4,209
  4,405
  4,610
  4,827
  5,054
  5,294
  5,545
  5,809
  6,087
  6,379
  6,686
  7,008
  7,346
Tax expense, $m
  361
  382
  404
  427
  452
  479
  507
  536
  568
  601
  834
  871
  909
  950
  993
  1,039
  1,086
  1,136
  1,189
  1,245
  1,303
  1,365
  1,429
  1,497
  1,569
  1,643
  1,722
  1,805
  1,892
  1,984
Net income, $m
  976
  1,032
  1,092
  1,156
  1,223
  1,294
  1,370
  1,450
  1,535
  1,624
  2,254
  2,354
  2,459
  2,569
  2,685
  2,808
  2,937
  3,073
  3,215
  3,366
  3,524
  3,690
  3,864
  4,048
  4,241
  4,444
  4,657
  4,881
  5,116
  5,363

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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
Total assets, $m
  10,406
  10,823
  11,268
  11,741
  12,243
  12,775
  13,340
  13,936
  14,567
  15,233
  15,937
  16,679
  17,461
  18,285
  19,153
  20,067
  21,030
  22,043
  23,108
  24,230
  25,409
  26,648
  27,952
  29,322
  30,763
  32,277
  33,868
  35,539
  37,296
  39,141
Adjusted assets (=assets-cash), $m
  10,406
  10,823
  11,268
  11,741
  12,243
  12,775
  13,340
  13,936
  14,567
  15,233
  15,937
  16,679
  17,461
  18,285
  19,153
  20,067
  21,030
  22,043
  23,108
  24,230
  25,409
  26,648
  27,952
  29,322
  30,763
  32,277
  33,868
  35,539
  37,296
  39,141
Revenue / Adjusted assets
  0.668
  0.668
  0.668
  0.668
  0.668
  0.668
  0.668
  0.668
  0.668
  0.668
  0.668
  0.668
  0.668
  0.668
  0.668
  0.668
  0.668
  0.668
  0.668
  0.668
  0.668
  0.668
  0.668
  0.668
  0.668
  0.668
  0.668
  0.668
  0.668
  0.668
Average production assets, $m
  7,966
  8,285
  8,626
  8,988
  9,372
  9,780
  10,212
  10,669
  11,152
  11,662
  12,200
  12,768
  13,367
  13,998
  14,662
  15,362
  16,099
  16,874
  17,690
  18,548
  19,451
  20,400
  21,398
  22,447
  23,550
  24,709
  25,927
  27,206
  28,551
  29,964
Working capital, $m
  -139
  -145
  -151
  -157
  -164
  -171
  -178
  -186
  -195
  -204
  -213
  -223
  -233
  -244
  -256
  -268
  -281
  -294
  -309
  -324
  -339
  -356
  -373
  -392
  -411
  -431
  -452
  -475
  -498
  -523
Total debt, $m
  4,764
  5,079
  5,415
  5,772
  6,151
  6,553
  6,979
  7,430
  7,906
  8,409
  8,940
  9,500
  10,091
  10,713
  11,369
  12,059
  12,786
  13,550
  14,355
  15,201
  16,092
  17,028
  18,012
  19,046
  20,134
  21,277
  22,478
  23,740
  25,066
  26,460
Total liabilities, $m
  7,856
  8,171
  8,507
  8,864
  9,243
  9,645
  10,071
  10,522
  10,998
  11,501
  12,032
  12,592
  13,183
  13,805
  14,461
  15,151
  15,878
  16,642
  17,447
  18,293
  19,184
  20,120
  21,104
  22,138
  23,226
  24,369
  25,570
  26,832
  28,158
  29,552
Total equity, $m
  2,549
  2,652
  2,761
  2,876
  2,999
  3,130
  3,268
  3,414
  3,569
  3,732
  3,904
  4,086
  4,278
  4,480
  4,693
  4,917
  5,152
  5,400
  5,662
  5,936
  6,225
  6,529
  6,848
  7,184
  7,537
  7,908
  8,298
  8,707
  9,137
  9,590
Total liabilities and equity, $m
  10,405
  10,823
  11,268
  11,740
  12,242
  12,775
  13,339
  13,936
  14,567
  15,233
  15,936
  16,678
  17,461
  18,285
  19,154
  20,068
  21,030
  22,042
  23,109
  24,229
  25,409
  26,649
  27,952
  29,322
  30,763
  32,277
  33,868
  35,539
  37,295
  39,142
Debt-to-equity ratio
  1.870
  1.920
  1.960
  2.010
  2.050
  2.090
  2.140
  2.180
  2.220
  2.250
  2.290
  2.320
  2.360
  2.390
  2.420
  2.450
  2.480
  2.510
  2.540
  2.560
  2.580
  2.610
  2.630
  2.650
  2.670
  2.690
  2.710
  2.730
  2.740
  2.760
Adjusted equity ratio
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  976
  1,032
  1,092
  1,156
  1,223
  1,294
  1,370
  1,450
  1,535
  1,624
  2,254
  2,354
  2,459
  2,569
  2,685
  2,808
  2,937
  3,073
  3,215
  3,366
  3,524
  3,690
  3,864
  4,048
  4,241
  4,444
  4,657
  4,881
  5,116
  5,363
Depreciation, amort., depletion, $m
  1,531
  1,563
  1,597
  1,633
  1,671
  1,712
  1,755
  1,801
  1,849
  1,900
  1,220
  1,277
  1,337
  1,400
  1,466
  1,536
  1,610
  1,687
  1,769
  1,855
  1,945
  2,040
  2,140
  2,245
  2,355
  2,471
  2,593
  2,721
  2,855
  2,996
Funds from operations, $m
  2,507
  2,595
  2,689
  2,789
  2,894
  3,007
  3,126
  3,251
  3,384
  3,525
  3,474
  3,631
  3,795
  3,969
  4,152
  4,344
  4,547
  4,760
  4,984
  5,220
  5,469
  5,730
  6,004
  6,293
  6,596
  6,914
  7,249
  7,601
  7,971
  8,359
Change in working capital, $m
  -5
  -6
  -6
  -6
  -7
  -7
  -8
  -8
  -8
  -9
  -9
  -10
  -10
  -11
  -12
  -12
  -13
  -14
  -14
  -15
  -16
  -17
  -17
  -18
  -19
  -20
  -21
  -22
  -23
  -25
Cash from operations, $m
  2,512
  2,601
  2,695
  2,795
  2,901
  3,014
  3,133
  3,259
  3,393
  3,533
  3,484
  3,641
  3,806
  3,980
  4,163
  4,356
  4,560
  4,774
  4,999
  5,235
  5,484
  5,746
  6,021
  6,311
  6,615
  6,935
  7,271
  7,623
  7,994
  8,384
Maintenance CAPEX, $m
  -766
  -797
  -829
  -863
  -899
  -937
  -978
  -1,021
  -1,067
  -1,115
  -1,166
  -1,220
  -1,277
  -1,337
  -1,400
  -1,466
  -1,536
  -1,610
  -1,687
  -1,769
  -1,855
  -1,945
  -2,040
  -2,140
  -2,245
  -2,355
  -2,471
  -2,593
  -2,721
  -2,855
New CAPEX, $m
  -302
  -319
  -340
  -362
  -385
  -408
  -432
  -457
  -483
  -510
  -538
  -568
  -599
  -631
  -665
  -700
  -737
  -775
  -816
  -858
  -903
  -949
  -998
  -1,049
  -1,103
  -1,159
  -1,218
  -1,280
  -1,345
  -1,413
Cash from investing activities, $m
  -1,068
  -1,116
  -1,169
  -1,225
  -1,284
  -1,345
  -1,410
  -1,478
  -1,550
  -1,625
  -1,704
  -1,788
  -1,876
  -1,968
  -2,065
  -2,166
  -2,273
  -2,385
  -2,503
  -2,627
  -2,758
  -2,894
  -3,038
  -3,189
  -3,348
  -3,514
  -3,689
  -3,873
  -4,066
  -4,268
Free cash flow, $m
  1,443
  1,485
  1,526
  1,570
  1,618
  1,669
  1,723
  1,781
  1,843
  1,908
  1,779
  1,853
  1,930
  2,012
  2,099
  2,190
  2,287
  2,388
  2,495
  2,608
  2,727
  2,852
  2,984
  3,122
  3,268
  3,421
  3,582
  3,751
  3,929
  4,116
Issuance/(repayment) of debt, $m
  285
  315
  336
  357
  379
  402
  426
  451
  476
  503
  531
  560
  590
  622
  656
  690
  727
  765
  805
  846
  890
  936
  984
  1,035
  1,087
  1,143
  1,201
  1,262
  1,326
  1,393
Issuance/(repurchase) of shares, $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 from financing (excl. dividends), $m  
  285
  315
  336
  357
  379
  402
  426
  451
  476
  503
  531
  560
  590
  622
  656
  690
  727
  765
  805
  846
  890
  936
  984
  1,035
  1,087
  1,143
  1,201
  1,262
  1,326
  1,393
Total cash flow (excl. dividends), $m
  1,728
  1,800
  1,862
  1,927
  1,997
  2,071
  2,149
  2,232
  2,319
  2,411
  2,310
  2,413
  2,521
  2,635
  2,754
  2,881
  3,013
  3,153
  3,300
  3,455
  3,617
  3,788
  3,968
  4,157
  4,355
  4,564
  4,783
  5,013
  5,255
  5,509
Retained Cash Flow (-), $m
  -98
  -102
  -109
  -116
  -123
  -130
  -138
  -146
  -155
  -163
  -172
  -182
  -192
  -202
  -213
  -224
  -236
  -248
  -261
  -275
  -289
  -304
  -319
  -336
  -353
  -371
  -390
  -410
  -430
  -452
Prev. year cash balance distribution, $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 flow adjustment, $m
  33
  35
  36
  38
  39
  41
  43
  45
  47
  49
  51
  53
  56
  58
  61
  64
  67
  70
  74
  77
  81
  85
  89
  93
  98
  103
  108
  113
  119
  125
Cash available for distribution, $m
  1,630
  1,697
  1,753
  1,811
  1,874
  1,940
  2,011
  2,086
  2,165
  2,248
  2,138
  2,231
  2,329
  2,433
  2,542
  2,657
  2,778
  2,905
  3,039
  3,180
  3,328
  3,484
  3,648
  3,821
  4,002
  4,193
  4,393
  4,604
  4,825
  5,057
Discount rate, %
  8.50
  8.93
  9.37
  9.84
  10.33
  10.85
  11.39
  11.96
  12.56
  13.19
  13.85
  14.54
  15.26
  16.03
  16.83
  17.67
  18.55
  19.48
  20.46
  21.48
  22.55
  23.68
  24.86
  26.11
  27.41
  28.78
  30.22
  31.73
  33.32
  34.99
PV of cash for distribution, $m
  1,502
  1,431
  1,340
  1,244
  1,146
  1,046
  945
  845
  746
  651
  513
  438
  367
  304
  247
  197
  154
  118
  89
  65
  46
  32
  22
  15
  9
  6
  4
  2
  1
  1
Current shareholders' claim on cash, %
  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. is an integrated brand owner, manufacturer and distributor of non-alcoholic beverages in the United States, Mexico and Canada. The Company offers a diverse portfolio of flavored (non-cola) carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs), including ready-to-drink teas, juices, juice drinks, water and mixers. The Company's segments include Beverage Concentrates, Packaged Beverages and Latin America Beverages. The Company's brand portfolio includes CSD brands, such as Dr Pepper, Canada Dry, Penafiel, Squirt, 7UP, Crush, A&W, Sunkist soda and Schweppes, and NCB brands, such as Snapple, Hawaiian Punch, Mott's and Clamato. The Company's NCB brands include Snapple, Hawaiian Punch, Mott's, FIJI mineral water, Clamato, Yoo-Hoo, Deja Blue, Bai Brands, ReaLemon, AriZona tea, Vita Coco coconut water, Mr and Mrs T mixers, BodyArmor, Nantucket Nectars, Garden Cocktail, Mistic and Rose's.

FINANCIAL RATIOS  of  Dr Pepper Snapple Group (DPS)

Valuation Ratios
P/E Ratio 26.7
Price to Sales 3.5
Price to Book 10.6
Price to Tangible Book
Price to Cash Flow 24.1
Price to Free Cash Flow 29.9
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 $6690 million for the last fiscal year's total revenue generated by Dr Pepper Snapple Group. The default revenue input number comes from 2017 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 3.9% 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 8.5%, 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 77.7%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 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 5.4% 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 0.5%.

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 114.6%.

Life of production assets of 10 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 -2%. 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 - $2451 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 182 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 $22.5 billion.

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