Pepsico Stock Valuation

PEP
 Stock
  

USD 184.11  0.97  0.52%   

What is the intrinsic value of Pepsico stock? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Pepsico, is its stock price multiplied by the total number of shares outstanding, calculating Pepsico's enterprise value requires a different approach. It uses Pepsico's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
As of 28th of November 2022, Free Cash Flow is likely to drop to about 8.4 B. In addition to that, Enterprise Value is likely to drop to about 197.6 B.
Pepsico holds a recent Real Value of $168.23 per share. The prevailing price of the company is $184.11. At this time, the company appears to be overvalued. Our model determines the value of Pepsico from analyzing the company fundamentals such as Operating Margin of 18.12 %, return on equity of 55.71 %, and Shares Outstanding of 1.38 B as well as examining its technical indicators and Probability Of Bankruptcy. In general, we support obtaining undervalued entities and abandoning overvalued entities since, at some point, asset prices and their ongoing real values will merge together.
  
Pepsico Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Pepsico's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Pepsico Most Recent Valuation Data

Price Book
13.37
EPS Estimate Next Quarter
1.69
Price Sales
3.03
Forward Annual Dividend Yield
0.025
EBITDA
15.2 B
Dividend Share
4.45
Overvalued
Today 184.11
Please note that Pepsico's price fluctuation is very steady at this time. Calculation of the real value of Pepsico is based on 3 months time horizon. Increasing Pepsico's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Pepsico is useful when determining the fair value of the Pepsico stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Pepsico. Since Pepsico is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Pepsico Stock. However, Pepsico's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
166.89
Downside
168.23
Real Value
202.52
Upside
Estimating the potential upside or downside of Pepsico helps investors to forecast how Pepsico stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Pepsico more accurately as focusing exclusively on Pepsico's fundamentals will not take into account other important factors:
Earnings
Estimates (7)
LowProjected EPSHigh
6.206.256.31
Details
Hype
Prediction
LowEstimated ValueHigh
182.94184.28185.62
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
2.822.882.94
Details
11 Analysts
Consensus
LowTarget PriceHigh
136.00170.77200.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Pepsico's intrinsic value based on its ongoing forecasts of Pepsico's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Pepsico's closest peers. When choosing an evaluation method for Pepsico, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Pepsico Investments

11.06 Billion

Pepsico Valuation Drivers Correlation

Many accounts on the financial statements of Pepsico are highly interrelated and sometimes correlated. Consequently, when conducting Pepsico's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Pepsico
Click cells to compare fundamentals

Pepsico Valuation Trend

Knowing Pepsico's actual value is paramount for traders to make sound investment determinations. Pepsico's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Pepsico's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Pepsico's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Pepsico Market Cap

Pepsico is considered to be number one stock in market capitalization category among related companies. Market capitalization of Beverages—Non-Alcoholic industry is at this time estimated at about 650.15 Billion. Pepsico totals roughly 253.65 Billion in market capitalization claiming about 39% of stocks in Beverages—Non-Alcoholic industry.
Capitalization  Workforce  Valuation  Revenue  Total debt

Pepsico Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Pepsico's current stock value. Our valuation model uses many indicators to compare Pepsico value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Pepsico competition to find correlations between indicators driving Pepsico's intrinsic value. More Info.
Pepsico is considered to be number one stock in five year return category among related companies. It is considered to be number one stock in price to earning category among related companies reporting about  9.34  of Price to Earning per Five Year Return. As of 28th of November 2022, Earnings before Tax is likely to grow to about 10.1 B, while Price to Earnings Ratio are likely to drop 26.66.. Comparative valuation analysis is a catch-all model that can be used if you cannot value Pepsico by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Pepsico's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Pepsico's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Pepsico's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Pepsico and how it compares across the competition.

About Pepsico Valuation

The stock valuation mechanism determines the current worth of Pepsico on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Pepsico. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Pepsico based exclusively on its fundamental and basic technical indicators. By analyzing Pepsico's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Pepsico's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Pepsico. We calculate exposure to Pepsico's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Pepsico's related companies.
Fiscal Year End
December
Industry
Beverages-Non-Alcoholic
Concentration
Soft Drinks
Full Time Employees
309 K
Service Category
Beverages
Employer Id Number
13-1584302
Last ReportedProjected for 2022
Gross Profit39.8 B40.4 B
Profit Margin 10.08  9.74 
Pepsico's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Pepsico's value is low or high relative to the company's performance and growth projections. Determining the market value of Pepsico can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Pepsico represents a small ownership stake in the entity. As a stockholder of Pepsico, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Pepsico Dividends Analysis For Valuation

As of 28th of November 2022, Dividend Yield is likely to grow to 0.0253, while Payment of Dividends and Other Cash Distributions is likely to drop (4.1 B). . Pepsico Earning Before Interest and Taxes EBIT is very stable at the moment as compared to the past year. Pepsico reported last year Earning Before Interest and Taxes EBIT of 11.32 Billion. As of 28th of November 2022, Earnings before Tax is likely to grow to about 10.1 B, while Accumulated Retained Earnings Deficit are likely to drop about 59.6 B.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-3.8 B-4.1 B
Dividend Yield 0.0252  0.0253 
Dividends per Basic Common Share 3.40  3.31 
There are various types of dividends Pepsico can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Pepsico shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Pepsico directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Pepsico pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Pepsico by the value of the dividends paid out.

Pepsico Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Pepsico does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.68
Earnings Quarterly Growth21.50%
Revenue Growth8.80%
Payout Ratio63.66%
Enterprise Value To Ebitda18.89
Earnings Growth21.90%
Enterprise Value To Revenue3.42

Pepsico Current Valuation Indicators

Valuation refers to the process of determining the present value of Pepsico and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Pepsico we look at many different elements of the entity such as Pepsico's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Pepsico's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Pepsico's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Pepsico, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Pepsico's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Pepsico's worth.
Please check Your Equity Center. 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

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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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Is Pepsico's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Pepsico. If investors know Pepsico will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Pepsico listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.22
Market Capitalization
253.7 B
Quarterly Revenue Growth YOY
0.088
Return On Assets
0.0838
Return On Equity
0.56
The market value of Pepsico is measured differently than its book value, which is the value of Pepsico that is recorded on the company's balance sheet. Investors also form their own opinion of Pepsico's value that differs from its market value or its book value, called intrinsic value, which is Pepsico's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Pepsico's market value can be influenced by many factors that don't directly affect Pepsico's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Pepsico's value and its price as these two are different measures arrived at by different means. Investors typically determine Pepsico value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Pepsico's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.