--- title: PepsiCo (PEP) — intrinsic value and fair price canonical: https://sweetvaluelab.com/stocks/pep ticker: PEP as_of: 2026-10-17 sector: Consumer Defensive industry: Beverages - Non-Alcoholic --- # PepsiCo (PEP) PepsiCo (PEP) closed at $131.49 on Oct 16, 2026, undervalued by 3% vs its model value of $135.10 (from a five-year discounted cash flow). ## Key figures | Figure | Value | | --- | ---: | | Last close | $131.49 (Oct 16, 2026) | | Model value (from a five-year discounted cash flow) | $135.10 | | Price vs model | undervalued by 3% vs model | | Range of that model | $71.69 – $359.41 | | Market value | $179.2B | | P/E (fiscal 2025) | 21.9 | | Net margin (fiscal 2025) | 8.8% | | Free cash flow (fiscal 2025) | $7.7B | | Dividend yield (trailing twelve months) | 4.41% | | Beta | 0.36 | | Cost of capital (WACC) | 6.75% | | Business classification | Dividend Payer (Low/slowing growth (~1% recent), Moderate margins (9% net margin), Strong dividend yield, Highly cyclical earnings, High leverage (D/E 2.4x)) | ## On the stock lists | List | Place | Figure | Page | | --- | ---: | ---: | --- | | Highest dividend yield | #45 | 4.41% | https://sweetvaluelab.com/lists/highest-dividend-yield | | Near 52-week lows | #48 | +6.3% | https://sweetvaluelab.com/lists/near-52-week-lows | | Insider buying | #3 | $23.7M | https://sweetvaluelab.com/lists/insider-buying | | Dividend growth streaks | #3 | 53+ years | https://sweetvaluelab.com/lists/dividend-growth-streaks | ## Dividends | Figure | Value | | --- | ---: | | Trailing dividend yield | 4.41% | | Dividends per share, last 12 months | $5.81 | | Dividends / free cash flow (fiscal 2025) | 99.6% | | Raised | 53+ years in a row | | Growth over 5 years | 6.7% a year | | Latest payment | $1.48, ex-date Sep 4, 2026, paid Sep 30, 2026 | | Year of payments | Dividends per share | | --- | ---: | | To Sep 2, 2021 | $4.20 | | To Sep 1, 2022 | $4.45 | | To Aug 31, 2023 | $4.83 | | To Sep 6, 2024 | $5.24 | | To Sep 5, 2025 | $5.56 | | Trailing twelve months (to Sep 4, 2026) | $5.81 | ## Valuation models Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026. | Model | Role | Value per share | Low | High | | --- | --- | ---: | ---: | ---: | | DCF · Perpetuity growth · 5y | primary | $135.10 | $71.69 | $359.41 | | DCF · Perpetuity growth · 10y | cross check | $141.00 | $78.31 | $365.38 | | DCF · EBITDA exit · 5y | cross check | $149.80 | $97.51 | $211.56 | | DCF · EBITDA exit · 10y | cross check | $152.39 | $97.62 | $225.88 | | P/E · peers | cross check | $122.83 | $120.11 | $131.58 | | P/E · own history | cross check | $188.97 | $167.81 | $212.03 | | PEG | sanity check | $123.34 | $123.34 | $123.34 | | EV/EBITDA · peers | cross check | $139.79 | $96.64 | $214.91 | | EV/Revenue · peers | cross check | $102.72 | $87.40 | $164.70 | | Earnings power value | cross check | $61.01 | $44.61 | $86.79 | | Dividend discount | cross check | $132.30 | $86.27 | $243.34 | ## Insider activity (SEC Form 4) Past 90 days: 4 open-market buys ($23.7M) and 1 open-market sale ($404,673.8); 10b5-1 plan sales included. | Date | Insider | Relationship | Transaction | Shares | Value | | --- | --- | --- | --- | ---: | ---: | | Oct 14, 2026 | POHLAD ROBERT C | Director | Open-market buy | 9,989 | $1.3M | | Oct 14, 2026 | POHLAD ROBERT C | Director | Open-market buy | 45,075 | $5.8M | | Oct 14, 2026 | POHLAD ROBERT C | Director | Open-market buy | 45,075 | $5.8M | | Oct 14, 2026 | POHLAD ROBERT C | Director | Open-market buy | 84,507 | $10.8M | | Sep 30, 2026 | Weisser Alberto | Director | Grant / award | 1,336.052 | — | ## Recent SEC filings | Filed | Form | What | Filing | | --- | --- | --- | --- | | Oct 16, 2026 | 8-K | 8.01 Other Events; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/77476/000110465926116626/tm2627433d2_8k.htm | | Oct 8, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/77476/000007747626000050/pep-20261008.htm | | Oct 8, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/77476/000007747626000048/pep-20260905.htm | | Sep 17, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers | https://www.sec.gov/Archives/edgar/data/77476/000007747626000042/pep-20260917.htm | | Jul 9, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/77476/000007747626000037/pep-20260709.htm | ## Superinvestors holding it (latest 13F) | Manager | Quarter | Shares | Value | | --- | --- | ---: | ---: | | Yacktman | 2026-06-30 | 2,072,843 | $280.7M | | Lindsell Train | 2026-06-30 | 1,023,706 | $138.6M | | David Katz | 2026-09-30 | 297,512 | $37.7M | | Torray | 2026-06-30 | 146,268 | $19.8M | 14 tracked managers in all. ## About 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, dair… --- Source: https://sweetvaluelab.com/stocks/pep (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.