(PEP) PepsiCo - Overview
Stock: Cola, Chips, Juice, Oats, Water
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 3.92% |
| Yield on Cost 5y | 4.67% |
| Yield CAGR 5y | 7.27% |
| Payout Consistency | 97.5% |
| Payout Ratio | 69.0% |
| Risk 5d forecast | |
|---|---|
| Volatility | 21.1% |
| Relative Tail Risk | -8.52% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.81 |
| Alpha | 16.08 |
| Character TTM | |
|---|---|
| Beta | 0.134 |
| Beta Downside | 0.058 |
| Drawdowns 3y | |
|---|---|
| Max DD | 30.32% |
| CAGR/Max DD | 0.07 |
Description: PEP PepsiCo January 26, 2026
PepsiCo (NASDAQ:PEP) is a global food-and-beverage company that operates through seven geographic segments, the largest being Frito-Lay North America and PepsiCo Beverages North America. Its portfolio spans salty snacks (Lay’s, Doritos, Cheetos), cereals and grain-based foods (Quaker, Rice-A-Roni), and a broad beverage lineup (Pepsi, Mountain Dew, Gatorade, Aquafina, and emerging “hard-MTN Dew” alcoholic drinks). The firm reaches consumers via wholesale distributors, food-service accounts, mass-merchandisers, e-commerce platforms, and its own direct-store-delivery network.
In FY 2023 PepsiCo reported net revenue of $86.4 billion, a 4.5 % year-over-year increase driven primarily by a 6 % rise in its Snacks segment and a 3 % growth in Beverages, offset by higher commodity costs that compressed operating margin to 13.2 % (down from 13.8 % in FY 2022). The company’s dividend yield hovered around 2.7 % and its free cash flow conversion remained robust at 78 % of net income, supporting a 7 % annual dividend increase. These metrics place PepsiCo in the top quartile of the Soft Drinks & Non-Alcoholic Beverages sub-industry on a cash-generation basis.
Key macro drivers for PepsiCo include persistent inflationary pressure on raw-material inputs (e.g., corn and sugar prices up ~12 % YoY), shifting consumer preferences toward “better-for-you” and low-sugar products, and accelerating growth in emerging markets where per-capita snack consumption is rising at ~5 % CAGR. Should commodity price inflation ease or if health-trend adoption slows, the company’s margin outlook could improve; conversely, a prolonged shift to private-label alternatives would pressure volume growth.
For a deeper quantitative assessment of PepsiCo’s valuation dynamics, you may find it useful to explore the detailed analytics on ValueRay.
Piotroski VR‑10 (Strict, 0-10) 7.5
| Net Income: 7.67b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.10 > 0.02 and ΔFCF/TA 2.37 > 1.0 |
| NWC/Revenue: -4.88% < 20% (prev -6.22%; Δ 1.34% < -1%) |
| CFO/TA 0.14 > 3% & CFO 15.03b > Net Income 7.67b |
| Net Debt (40.74b) to EBITDA (13.77b): 2.96 < 3 |
| Current Ratio: 0.85 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.37b) vs 12m ago -0.51% < -2% |
| Gross Margin: 53.97% > 18% (prev 0.55%; Δ 5342 % > 0.5%) |
| Asset Turnover: 95.46% > 50% (prev 92.35%; Δ 3.11% > 0%) |
| Interest Coverage Ratio: 6.50 > 6 (EBITDA TTM 13.77b / Interest Expense TTM 1.12b) |
Altman Z'' 3.09
| A: -0.04 (Total Current Assets 27.95b - Total Current Liabilities 32.76b) / Total Assets 107.40b |
| B: 0.68 (Retained Earnings 72.79b / Total Assets 107.40b) |
| C: 0.07 (EBIT TTM 7.26b / Avg Total Assets 103.43b) |
| D: 0.67 (Book Value of Equity 57.79b / Total Liabilities 86.85b) |
| Altman-Z'' Score: 3.09 = A |
Beneish M -3.00
| DSRI: 1.04 (Receivables 11.51b/10.33b, Revenue 98.73b/91.85b) |
| GMI: 1.02 (GM 53.97% / 54.84%) |
| AQI: 1.00 (AQ_t 0.43 / AQ_t-1 0.42) |
| SGI: 1.07 (Revenue 98.73b / 91.85b) |
| TATA: -0.07 (NI 7.67b - CFO 15.03b) / TA 107.40b) |
| Beneish M-Score: -3.00 (Cap -4..+1) = A |
What is the price of PEP shares?
Over the past week, the price has changed by +10.97%, over one month by +22.69%, over three months by +21.60% and over the past year by +21.98%.
Is PEP a buy, sell or hold?
- StrongBuy: 4
- Buy: 2
- Hold: 16
- Sell: 0
- StrongSell: 1
What are the forecasts/targets for the PEP price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 168.6 | -1.1% |
| Analysts Target Price | 168.6 | -1.1% |
| ValueRay Target Price | 180.2 | 5.7% |
PEP Fundamental Data Overview February 07, 2026
P/E Forward = 19.4175
P/S = 2.4389
P/B = 11.1296
P/EG = 3.3472
Revenue TTM = 98.73b USD
EBIT TTM = 7.26b USD
EBITDA TTM = 13.77b USD
Long Term Debt = 42.32b USD (from longTermDebt, last quarter)
Short Term Debt = 7.58b USD (from shortTermDebt, last quarter)
Debt = 49.90b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 40.74b USD (from netDebt column, last quarter)
Enterprise Value = 269.44b USD (229.07b + Debt 49.90b - CCE 9.53b)
Interest Coverage Ratio = 6.50 (Ebit TTM 7.26b / Interest Expense TTM 1.12b)
EV/FCF = 26.13x (Enterprise Value 269.44b / FCF TTM 10.31b)
FCF Yield = 3.83% (FCF TTM 10.31b / Enterprise Value 269.44b)
FCF Margin = 10.45% (FCF TTM 10.31b / Revenue TTM 98.73b)
Net Margin = 7.77% (Net Income TTM 7.67b / Revenue TTM 98.73b)
Gross Margin = 53.97% ((Revenue TTM 98.73b - Cost of Revenue TTM 45.44b) / Revenue TTM)
Gross Margin QoQ = 53.23% (prev 53.57%)
Tobins Q-Ratio = 2.51 (Enterprise Value 269.44b / Total Assets 107.40b)
Interest Expense / Debt = 0.67% (Interest Expense 333.0m / Debt 49.90b)
Taxrate = 15.33% (460.0m / 3.00b)
NOPAT = 6.14b (EBIT 7.26b * (1 - 15.33%))
Current Ratio = 0.85 (Total Current Assets 27.95b / Total Current Liabilities 32.76b)
Debt / Equity = 2.45 (Debt 49.90b / totalStockholderEquity, last quarter 20.41b)
Debt / EBITDA = 2.96 (Net Debt 40.74b / EBITDA 13.77b)
Debt / FCF = 3.95 (Net Debt 40.74b / FCF TTM 10.31b)
Total Stockholder Equity = 19.16b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.41% (Net Income 7.67b / Total Assets 107.40b)
RoE = 40.03% (Net Income TTM 7.67b / Total Stockholder Equity 19.16b)
RoCE = 11.80% (EBIT 7.26b / Capital Employed (Equity 19.16b + L.T.Debt 42.32b))
RoIC = 8.89% (NOPAT 6.14b / Invested Capital 69.13b)
WACC = 5.36% (E(229.07b)/V(278.97b) * Re(6.41%) + D(49.90b)/V(278.97b) * Rd(0.67%) * (1-Tc(0.15)))
Discount Rate = 6.41% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.95%
Shares Correlation 3-Years: -100.0 | Cagr: -0.36%
[DCF Debug] Terminal Value 88.43% ; FCFF base≈9.06b ; Y1≈11.18b ; Y5≈19.04b
Fair Price DCF = 375.9 (EV 554.47b - Net Debt 40.74b = Equity 513.73b / Shares 1.37b; r=5.90% [WACC]; 5y FCF grow 25.0% → 2.90% )
EPS Correlation: 48.85 | EPS CAGR: 16.13% | SUE: 0.44 | # QB: 0
Revenue Correlation: 51.20 | Revenue CAGR: 17.17% | SUE: 0.29 | # QB: 0
EPS next Quarter (2026-03-31): EPS=1.54 | Chg30d=-0.025 | Revisions Net=-2 | Analysts=14
EPS current Year (2026-12-31): EPS=8.62 | Chg30d=+0.044 | Revisions Net=-5 | Growth EPS=+5.9% | Growth Revenue=+4.4%
EPS next Year (2027-12-31): EPS=9.11 | Chg30d=+0.136 | Revisions Net=-3 | Growth EPS=+5.7% | Growth Revenue=+3.1%