PepsiCo Stock Alpha and Beta Analysis

PEP
 Stock
  

USD 185.42  0.09  0.0485%   

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as PepsiCo. It also helps investors analyze the systematic and unsystematic risks associated with investing in PepsiCo over a specified time horizon. Remember, high PepsiCo's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation.
Please check PepsiCo Backtesting, PepsiCo Valuation, PepsiCo Correlation, PepsiCo Hype Analysis, PepsiCo Volatility, PepsiCo History and analyze PepsiCo Performance.
  
Please note that although PepsiCo alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., NYSE Composite index.) So in this particular case, PepsiCo did 0.06  better than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of PepsiCo stock's relative risk over its benchmark. PepsiCo has a beta of 0.56  . Let's try to break down what PepsiCo's beta means in this case. As returns on the market increase, PepsiCo returns are expected to increase less than the market. However, during the bear market, the loss on holding PepsiCo will be expected to be smaller as well.
As of 1st of December 2022, Book Value per Share is likely to grow to 8.44, while Enterprise Value over EBIT is likely to drop 20.37.
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.

Enterprise Value

197.64 Billion

PepsiCo Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. PepsiCo market risk premium is the additional return an investor will receive from holding PepsiCo long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in PepsiCo. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate PepsiCo's performance over market.
α0.06   β0.56
90 days against NYA

PepsiCo expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of PepsiCo's Buy-and-hold return. Our buy-and-hold chart shows how PepsiCo performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

PepsiCo Market Price Analysis

Market price analysis indicators help investors to evaluate how PepsiCo stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading PepsiCo shares will generate the highest return on investment. By understating and applying PepsiCo stock market price indicators, traders can identify PepsiCo position entry and exit signals to maximize returns.

PepsiCo Return and Market Media

The median price of PepsiCo for the period between Fri, Sep 2, 2022 and Thu, Dec 1, 2022 is 173.25 with a coefficient of variation of 3.8. The daily time series for the period is distributed with a sample standard deviation of 6.61, arithmetic mean of 173.81, and mean deviation of 5.64. The Stock received substential amount of media coverage during this period.
 Price Growth (%)  
       Timeline  
1
The Zacks Analyst Blog Highlights NextEra Energy, The Southe...09/15/2022
2
PepsiCo, Inc.s Intrinsic Value Is Potentially 43 percent Abo...09/20/2022
3
PepsiCo, Inc. insiders sold US11m worth of stock, possibly s...09/28/2022
4
EPS Estimate09/30/2022
5
Acquisition by Lewis Dave J of 1210 shares of Pepsico subjec...10/04/2022
6
Thinking to take in more of Pepsico10/11/2022
7
EPS Reported10/12/2022
8
Why Is Everyone Talking About Coca-Cola Stock - Nasdaq10/20/2022
9
Nasdaq, PepsiCo And This Basic Material Stock Insiders Are S...10/26/2022
10
Head-to-Head Pepsi vs. Coke, which is a better buy - Seeking...11/02/2022
11
Bona fide gift to Eugene Willemsen of 3585 shares of Pepsico...11/18/2022

About PepsiCo Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including PepsiCo or other stocks. Alpha measures the amount that position in PepsiCo has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
 2011 2012 2016 2022 (projected)
Long Term Debt to Equity1.02.252.712.23
Interest Coverage12.065.997.949.96

PepsiCo Upcoming Company Events

As portrayed in its financial statements, the presentation of PepsiCo's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, PepsiCo's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of PepsiCo's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of PepsiCo. Please utilize our Beneish M Score to check the likelihood of PepsiCo's management manipulating its earnings.
Upcoming Quarterly Report10th of February 2022
Next Financial Report21st of April 2022
Next Fiscal Quarter End31st of December 2021
Next Fiscal Year End10th of February 2022
Last Quarter Report30th of September 2021
Last Financial Announcement31st of December 2020

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Please check PepsiCo Backtesting, PepsiCo Valuation, PepsiCo Correlation, PepsiCo Hype Analysis, PepsiCo Volatility, PepsiCo History and analyze PepsiCo Performance. Note that the PepsiCo information on this page should be used as a complementary analysis to other PepsiCo's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

Complementary Tools for PepsiCo Stock analysis

When running PepsiCo price analysis, check to measure PepsiCo's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy PepsiCo is operating at the current time. Most of PepsiCo's value examination focuses on studying past and present price action to predict the probability of PepsiCo's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move PepsiCo's price. Additionally, you may evaluate how the addition of PepsiCo to your portfolios can decrease your overall portfolio volatility.
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PepsiCo technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of PepsiCo technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of PepsiCo trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...