PEP Valuation

PepsiCo Inc

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147.000

-1.2(-0.810%)1D

Overview
Forecast
Valuation
Earnings

PEP Relative Valuation

PEP's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, PEP is overvalued; if below, it's undervalued.

Historical Valuation

PepsiCo Inc (PEP) is now in the Undervalued zone, suggesting that its current forward PE ratio of 17.94 is considered Undervalued compared with the five-year average of 22.30. The fair price of PepsiCo Inc (PEP) is between 169.65 to 204.32 according to relative valuation methord. Compared to the current price of 146.93 USD , PepsiCo Inc is Undervalued By 13.39%.

Relative Value

Fair Zone

169.65-204.32

Current Price：146.93

13.39%

Undervalued

17.80

Trailing

Forward

13.24

EV/EBITDA

PepsiCo Inc. (PEP) has a current EV/EBITDA of 13.24. The 5-year average EV/EBITDA is 15.81. The thresholds are as follows: Strongly Undervalued below 12.60, Undervalued between 12.60 and 14.21, Fairly Valued between 17.42 and 14.21, Overvalued between 17.42 and 19.03, and Strongly Overvalued above 19.03. The current Forward EV/EBITDA of 13.24 falls within the Undervalued range.

16.21

EV/EBIT

PepsiCo Inc. (PEP) has a current EV/EBIT of 16.21. The 5-year average EV/EBIT is 19.57. The thresholds are as follows: Strongly Undervalued below 15.39, Undervalued between 15.39 and 17.48, Fairly Valued between 21.67 and 17.48, Overvalued between 21.67 and 23.76, and Strongly Overvalued above 23.76. The current Forward EV/EBIT of 16.21 falls within the Undervalued range.

2.14

PepsiCo Inc. (PEP) has a current PS of 2.14. The 5-year average PS is 2.58. The thresholds are as follows: Strongly Undervalued below 2.09, Undervalued between 2.09 and 2.34, Fairly Valued between 2.82 and 2.34, Overvalued between 2.82 and 3.06, and Strongly Overvalued above 3.06. The current Forward PS of 2.14 falls within the Undervalued range.

14.46

P/OCF

PepsiCo Inc. (PEP) has a current P/OCF of 14.46. The 5-year average P/OCF is 16.74. The thresholds are as follows: Strongly Undervalued below 13.11, Undervalued between 13.11 and 14.93, Fairly Valued between 18.56 and 14.93, Overvalued between 18.56 and 20.38, and Strongly Overvalued above 20.38. The current Forward P/OCF of 14.46 falls within the Undervalued range.

23.18

P/FCF

PepsiCo Inc. (PEP) has a current P/FCF of 23.18. The 5-year average P/FCF is 27.37. The thresholds are as follows: Strongly Undervalued below 15.51, Undervalued between 15.51 and 21.44, Fairly Valued between 33.30 and 21.44, Overvalued between 33.30 and 39.22, and Strongly Overvalued above 39.22. The current Forward P/FCF of 23.18 falls within the Historic Trend Line -Fairly Valued range.

PepsiCo Inc (PEP) has a current Price-to-Book (P/B) ratio of 11.02. Compared to its 3-year average P/B ratio of 12.46 , the current P/B ratio is approximately -11.49% higher. Relative to its 5-year average P/B ratio of 13.04, the current P/B ratio is about -15.47% higher. PepsiCo Inc (PEP) has a Forward Free Cash Flow (FCF) yield of approximately 3.45%. Compared to its 3-year average FCF yield of 2.91%, the current FCF yield is approximately 18.36% lower. Relative to its 5-year average FCF yield of 3.00% , the current FCF yield is about 14.77% lower.

10.93

P/B

Median3y

12.46

Median5y

13.04

3.48

FCF Yield

Median3y

2.91

Median5y

3.00

Competitors Valuation Multiple

The average P/S ratio for PEP's competitors is 2.42, providing a benchmark for relative valuation. PepsiCo Inc Corp (PEP) exhibits a P/S ratio of 2.14, which is -11.49% above the industry average. Given its robust revenue growth of 1.00%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Mondelez International Inc

McCormick & Company Inc

International Flavors & Fragrances Inc

Loss

-4.33%

17.10B

Performance Decomposition

Market capitalization of PEP decreased by 13.59% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 18.54 to 26.78.

The secondary factor is the Revenue Growth, contributed 1.00%to the performance.

Overall, the performance of PEP in the past 1 year is driven by P/E Change. Which is more unsustainable.

1.00%

22.50B → 22.73B

Revenue Growth

-59.05%

13.75 → 5.63

Margin Expansion

44.46%

18.54 → 26.78

P/E Change

-13.59%