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PepsiCo, Inc. — Intrinsic Value & Fair Price

PEP
NASDAQConsumer DefensiveBeverages - Non-AlcoholicCIK 0000077476pepsico.comAbout PEP
Last close · Oct 16, 2026131.49+3.11 (+2.42%)
Market cap$179.2B
Model value · DCF · Perpetuity growth · 5y
135.10
PepsiCo closed at $131.49 — undervalued by 3% vs model.
71.69the model's range359.41

DCF · Perpetuity growth · 5y leads for a mature, steady company — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
61.01 – 188.97
Wall St. target
140.00 6% below
Below model, 1y
21 of 21 days

Price and model value

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What the marks mean
Daily close

Dividends

Quarterly · as of Oct 16, 2026
Yield, trailing 12 months
4.41%
#45 · Highest dividend yield
Past 2 years
low 2.87%high 4.69%
Dividends per share, a year at a time
$4.20Sep ’21$4.45Sep ’22$4.83Aug ’23$5.24Sep ’24$5.56Sep ’25$5.81TTM
Dividends / free cash flow, FY2025
99.6%
Raised
53+ years in a row
Growth, 5 yrs
6.7% a year
Last change
+4.0% · Jun 2026
Every payment, with ex-dates · latest $1.48, paid Sep 30, 2026

Research on PEP

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How it is valued

Valued asMature & stable
Low/slowing growth (~1% recent)Moderate margins (9% net margin)Strong dividend yieldHighly cyclical earningsHigh leverage (D/E 2.4x)
What growth the price implies: the reverse DCF

Key figures

FY2025 · chosen for mature companies
P/E
21.9×
EV / EBITDA
14.1×
FCF yield
4.3%
Dividend yield, TTM
4.41%
Beta
0.36
Cost of capital (WACC)
6.75%
Full financials

Analyst actions

third-party, quoted
10-09Piper Sandler · target140.00
10-09Deutsche Bank · target132.00
10-09Morgan Stanley · target145.00
09-29JP Morgan · “Neutral” from “Overweight”downgrade
Ratings, targets and estimates

The weekly

One email a week across every stock we cover: 13F filings, insider trades, earnings and new research. It covers the whole market, not just PEP. No account.

About PepsiCo

PepsiCo, Inc. is a global enterprise that creates, promotes, and supplies a diverse array of drinks and easy-to-prepare food items across the globe. Its operations are structured into seven primary divisions: Frito-Lay North America, Quaker Foods North America, PepsiCo Beverages North America, Latin America, Europe, Africa/Middle East/South Asia, and the Asia Pacific, Australia, New Zealand, and China Region. The company's extensive product catalog encompasses popular snack foods like various dips, cheese snacks, spreads, and a range of chips (including corn, potato, and tortilla varieties). Its pantry staples feature cereals, rice, pasta, baking mixes, beverage syrups, granola bars, grits, oatmeal, rice cakes, and ready-made side dishes. In the beverage sector, PepsiCo offers concentrated syrups, fountain beverages, pre-packaged drinks, ready-to-consume teas, coffees, fruit juices, dairy-based items, and home carbonation systems with associated goods. PepsiCo reaches its broad clientele, which includes wholesale partners, food service providers, various retail outlets like supermarkets, pharmacies, convenience shops, discount stores, large-format retailers, membership-based stores, hard discount retailers, online merchants, and approved independent bottlers. This widespread distribution is achieved via direct store delivery, customer warehouse systems, and comprehensive distributor networks, along with direct sales to consumers through digital commerce channels and retail partners. Established in 1898, the corporation maintains its principal office in Purchase, New York.

CEO
Ramon Luis Laguarta
Headquarters
Purchase, NY
Employees
306,000
IPO
1972-06-01
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.