Keurig Dr PepperWBO:KDP +3.88%82 Interest Coverage is 2.69 as of Mar. 2026, which is 42% below its 10-year median of 4.67. GuruFocus rates WBO:KDP with a GF Score™ of 82/100 and a GF Value™ of €37.92 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 90 Beverages - Non-Alcoholic companies, Keurig Dr Pepper ranks worse than 77.78% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Keurig Dr Pepper's
Operating Income
for the
three
months ended in Mar. 2026 was €654 Mil. Keurig Dr Pepper's Interest Expense for the
three
months ended in Mar. 2026 was €-243 Mil.
Keurig Dr Pepper's interest coverage for the quarter that ended in Mar. 2026 was 2.69.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Keurig Dr Pepper's Interest Coverage or its related term are showing as below:
WBO:KDP'
s Interest Coverage Range Over the Past 10 Years
Min: 2.74 Med: 4.67 Max: 9.75
Current: 4.07
WBO:KDP's Interest Coverage is ranked worse than 77.78% of 90
companies
in the Beverages - Non-Alcoholic industry
Industry Median: 12.32
vs WBO:KDP: 4.07
Keurig Dr Pepper (WBO:KDP) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Keurig Dr Pepper Interest Coverage Related Terms
Keurig Dr Pepper Interest Coverage Historical Data
* Premium members only.
The historical data trend for Keurig Dr Pepper's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
WBO:KDP vs COCSF, COKE, PRMB: Interest Coverage Comparison
For the Beverages - Non-Alcoholic subindustry, Keurig Dr Pepper's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Keurig Dr Pepper Interest Coverage vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Keurig Dr Pepper's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Keurig Dr Pepper's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Keurig Dr Pepper (WBO:KDP) has a Interest Coverage of 2.69 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Keurig Dr Pepper and its competitors. This is 42% below median its historical median of 4.67. Over the past decade, Keurig Dr Pepper's Interest Coverage has ranged from 2.74 to 9.75. According to the industry distribution chart, Keurig Dr Pepper ranks #70 out of 90 companies in the Beverages - Non-Alcoholic industry, placing it in the top 77.8%.
Is Keurig Dr Pepper's Interest Coverage too high?
Keurig Dr Pepper's current Interest Coverage of 2.69 is 42% below median its 10-year median of 4.67. Over the past 10 years, this metric has ranged from a low of 2.74 to a high of 9.75. The Beverages - Non-Alcoholic industry median Interest Coverage is 12.32. Keurig Dr Pepper's value of 2.69 is 78.2% below this industry median. Based on the distribution chart, Keurig Dr Pepper ranks #70 out of 90 companies in the Beverages - Non-Alcoholic industry, which is in the bottom quartile relative to peers. Overall, Keurig Dr Pepper has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Keurig Dr Pepper's Interest Coverage compare to COCSF and COKE?
According to the Beverages - Non-Alcoholic industry distribution chart, Keurig Dr Pepper ranks #70 out of 90 companies for Interest Coverage. This places Keurig Dr Pepper in the lower half of its industry. The industry median Interest Coverage is 12.32. Keurig Dr Pepper's value of 2.69 is 78.2% below this benchmark. Historically, Keurig Dr Pepper's own Interest Coverage has ranged from 2.74 to 9.75 over the past decade. While the company's 10-year median is 4.67 vs. the industry median of 12.32, Keurig Dr Pepper has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Beverages - Non-Alcoholic company?
The median Interest Coverage among Beverages - Non-Alcoholic companies is 12.32, based on 90 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Keurig Dr Pepper's current Interest Coverage of 2.69 is 78.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Keurig Dr Pepper and its competitors. For the Beverages - Non-Alcoholic industry, the median Interest Coverage is 12.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Keurig Dr Pepper's current Interest Coverage is 2.69, which is 42% below median its own 10-year median of 4.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Keurig Dr Pepper stock overvalued right now?
Based on GuruFocus' analysis, Keurig Dr Pepper (WBO:KDP) is currently considered Modestly Undervalued. The stock's GF Value™ is €37.92, compared to a current price of €29.05 — trading 23.4% below its estimated fair value. The current Interest Coverage is 2.69, which is 42% below median its 10-year median of 4.67 and 78.2% below the Beverages - Non-Alcoholic industry median of 12.32. Keurig Dr Pepper's overall GF Score™ is 82/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Keurig Dr Pepper (WBO:KDP), the current Interest Coverage is 2.69 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Keurig Dr Pepper (WBO:KDP) Overvalued in 2026?
Based on GuruFocus' analysis, Keurig Dr Pepper stock appears to be undervalued.
The current stock price of €29.05 is trading 23.4% below its estimated GF Value™ of €37.92.
GuruFocus considers Keurig Dr Pepper to be Modestly Undervalued.
Key valuation signals for WBO:KDP:
Interest Coverage: 2.69 (42% below median its 10-year median of 4.67)
GF Value™: €37.92 vs. price of €29.05 (23.4% below fair value)
Industry Position: 78.2% below the Beverages - Non-Alcoholic median (#70 of 90)
No single metric tells the full story. See the WBO:KDP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Keurig Dr Pepper was established in 2018 following a merger between Keurig Green Mountain Coffee and Dr Pepper Snapple. The company manufactures and distributes coffee systems (including coffee brewers and single-serve coffee pods) under the Keurig and Green Mountain brands, as well as ready-to-drink beverages including flavored (non-cola) sparkling soft drinks under well-known brands such as Dr Pepper, Snapple, and Canada Dry. On Aug. 25, 2025, the firm announced a definitive agreement to acquire coffeemaker JDE Peet's for $18 billion in cash, with the deal now scheduled to close in April 2026. Following the merger, it plans to split into two US-listed entities to focus on refreshment beverages in North America and global coffee separately.
82GF Score
Get the complete analysis for WBO:KDP
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
WBO:KDP has been successfully added to your 
