KDP FCF Yield Analysis
Updated 1478h ago·SEC filings & market data
Key Takeaway
The current FCF Yield of 3.7% means the company generates $3.70 in free cash flow for every $100 of its share price — a measure of cash profit relative to what you pay for the stock.
Sector Performance
44th percentileKDP
3.7%
Sector Median
4.1%
Sector Avg
9.2%
Prior Period
3.6%(Aug 2026)
Deep Analysis
The current FCF Yield of 3.7% means the company generates $3.70 in free cash flow for every $100 of its share price — a measure of cash profit relative to what you pay for the stock.
This sits below the sector median of 4.2%, placing it in the 44th percentile among sector peers. Over the last eight quarters, the metric has been stable, with recent values of 3.7%, 3.6%, 3.7%, and 3.5%; year-over-year change is not available, but quarter-over-quarter it rose 2.8%. The combination of a yield below the sector midpoint and a flat trend points to steady but not exceptional cash generation, suggesting limited upside from this metric alone. It also implies neither a large margin of safety nor a clear cash-flow warning, leaving risk roughly balanced. This supports the overall NEUTRAL verdict, as the FCF yield is neither strong enough to justify a positive view nor weak enough to warrant a negative one.
Frequently Asked Questions
What does the FCF Yield tell investors about KDP?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
Master KDP's Valuation
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3.7%
Sector Median
4.1%
Sector Avg
9.2%
How KDP's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.