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 17.37 is considered Undervalued compared with the five-year average of 21.93. The fair price of PepsiCo Inc (PEP) is between 169.80 to 209.76 according to relative valuation methord. Compared to the current price of 148.06 USD , PepsiCo Inc is Undervalued By 12.8%.
Relative Value
Fair Zone
169.80-209.76
Current Price：148.06
12.8%
Undervalued
17.23
PE
1Y
3Y
5Y
Trailing
Forward
13.09
EV/EBITDA
PepsiCo Inc. (PEP) has a current EV/EBITDA of 13.09. The 5-year average EV/EBITDA is 15.64. The thresholds are as follows: Strongly Undervalued below 12.17, Undervalued between 12.17 and 13.90, Fairly Valued between 17.37 and 13.90, Overvalued between 17.37 and 19.10, and Strongly Overvalued above 19.10. The current Forward EV/EBITDA of 13.09 falls within the Undervalued range.
15.94
EV/EBIT
PepsiCo Inc. (PEP) has a current EV/EBIT of 15.94. The 5-year average EV/EBIT is 19.32. The thresholds are as follows: Strongly Undervalued below 14.80, Undervalued between 14.80 and 17.06, Fairly Valued between 21.57 and 17.06, Overvalued between 21.57 and 23.83, and Strongly Overvalued above 23.83. The current Forward EV/EBIT of 15.94 falls within the Undervalued range.
2.14
PS
PepsiCo Inc. (PEP) has a current PS of 2.14. The 5-year average PS is 2.54. The thresholds are as follows: Strongly Undervalued below 2.02, Undervalued between 2.02 and 2.28, Fairly Valued between 2.81 and 2.28, Overvalued between 2.81 and 3.07, and Strongly Overvalued above 3.07. The current Forward PS of 2.14 falls within the Undervalued range.
13.49
P/OCF
PepsiCo Inc. (PEP) has a current P/OCF of 13.49. The 5-year average P/OCF is 16.53. The thresholds are as follows: Strongly Undervalued below 12.62, Undervalued between 12.62 and 14.57, Fairly Valued between 18.49 and 14.57, Overvalued between 18.49 and 20.45, and Strongly Overvalued above 20.45. The current Forward P/OCF of 13.49 falls within the Undervalued range.
19.37
P/FCF
PepsiCo Inc. (PEP) has a current P/FCF of 19.37. The 5-year average P/FCF is 27.06. The thresholds are as follows: Strongly Undervalued below 14.72, Undervalued between 14.72 and 20.89, Fairly Valued between 33.23 and 20.89, Overvalued between 33.23 and 39.40, and Strongly Overvalued above 39.40. The current Forward P/FCF of 19.37 falls within the Undervalued range.
PepsiCo Inc (PEP) has a current Price-to-Book (P/B) ratio of 10.45. Compared to its 3-year average P/B ratio of 12.25 , the current P/B ratio is approximately -14.64% higher. Relative to its 5-year average P/B ratio of 12.82, the current P/B ratio is about -18.47% higher. PepsiCo Inc (PEP) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.99%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.01% , the current FCF yield is about -100.00% lower.
10.37
P/B
Median3y
12.25
Median5y
12.82
3.31
FCF Yield
Median3y
2.99
Median5y
3.01
Competitors Valuation Multiple
The average P/S ratio for PEP's competitors is 2.36, providing a benchmark for relative valuation. PepsiCo Inc Corp (PEP) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 2.65%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of PEP decreased by 3.39% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 26.03 to 27.94.
The secondary factor is the Revenue Growth, contributed 2.65%to the performance.
Overall, the performance of PEP in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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