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Dr. Pepper Snapple Group (A.K.A. “Dr. Pepper") (DPS) stands out from other spin-offs due to its well-known brand names, discounted valuation to comparables and added selling pressure due to its listing in a the US from a parent with a UK shareholder base. Dr Pepper officially became an independent company after the demerger from its parent company, Cadbury Schweppes (CBY) (who is also trading under a new ticker symbol), was completed on May 7^th, 2008.

Dr Pepper (DPS) debuted at $10 billion on the NYSE last week, after shareholders pressured Cadbury to spin it off when an IPO plan failed.<!----> But CEO Larry Young says $25 shares are cheap. The No. 3 U.S. soda-maker trades at less than 13 times P/E, while rivals Coca-Cola (KO) and PepsiCo (PEP) trade at 18 times 2008 P/E. Barron’s says Dr Pepper should trade at a premium even to bottlers Coke (CCE) and Pepsi (PBG), who trade at 14 times estimated 2008 P/E.