Pepsico Stock Market Value
| PEP Stock | USD 160.34 1.60 1.01% |
| Symbol | PepsiCo |
PepsiCo Price To Book Ratio
Is Soft Drinks & Non-alcoholic Beverages space 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 (0.05) | Dividend Share 5.24 | Earnings Share 6.78 | Revenue Per Share 66.912 | Quarterly Revenue Growth (0.01) |
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 if PepsiCo is a good investment 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.
PepsiCo 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to PepsiCo's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of PepsiCo.
| 10/23/2024 |
| 11/22/2024 |
If you would invest 0.00 in PepsiCo on October 23, 2024 and sell it all today you would earn a total of 0.00 from holding PepsiCo or generate 0.0% return on investment in PepsiCo over 30 days. PepsiCo is related to or competes with Monster Beverage, Celsius Holdings, Coca Cola, and Vita Coco. PepsiCo, Inc. manufactures, markets, distributes, and sells various beverages and convenient foods worldwide More
PepsiCo Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure PepsiCo's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess PepsiCo upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.25) | |||
| Maximum Drawdown | 6.65 | |||
| Value At Risk | (1.38) | |||
| Potential Upside | 1.24 |
PepsiCo Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for PepsiCo's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as PepsiCo's standard deviation. In reality, there are many statistical measures that can use PepsiCo historical prices to predict the future PepsiCo's volatility.| Risk Adjusted Performance | (0.11) | |||
| Jensen Alpha | (0.15) | |||
| Total Risk Alpha | (0.26) | |||
| Treynor Ratio | 3.39 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of PepsiCo's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
PepsiCo Backtested Returns
PepsiCo maintains Sharpe Ratio (i.e., Efficiency) of -0.13, which implies the firm had a -0.13% return per unit of risk over the last 3 months. PepsiCo exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check PepsiCo's Variance of 0.8805, coefficient of variation of (674.45), and Risk Adjusted Performance of (0.11) to confirm the risk estimate we provide. The company holds a Beta of -0.044, which implies not very significant fluctuations relative to the market. As returns on the market increase, returns on owning PepsiCo are expected to decrease at a much lower rate. During the bear market, PepsiCo is likely to outperform the market. At this point, PepsiCo has a negative expected return of -0.13%. Please make sure to check PepsiCo's treynor ratio, kurtosis, as well as the relationship between the Kurtosis and day typical price , to decide if PepsiCo performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.62 |
Good predictability
PepsiCo has good predictability. Overlapping area represents the amount of predictability between PepsiCo time series from 23rd of October 2024 to 7th of November 2024 and 7th of November 2024 to 22nd of November 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of PepsiCo price movement. The serial correlation of 0.62 indicates that roughly 62.0% of current PepsiCo price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.62 | |
| Spearman Rank Test | 0.46 | |
| Residual Average | 0.0 | |
| Price Variance | 9.78 |
PepsiCo lagged returns against current returns
Autocorrelation, which is PepsiCo stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting PepsiCo's stock expected returns. We can calculate the autocorrelation of PepsiCo returns to help us make a trade decision. For example, suppose you find that PepsiCo has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
PepsiCo regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If PepsiCo stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if PepsiCo stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in PepsiCo stock over time.
Current vs Lagged Prices |
| Timeline |
PepsiCo Lagged Returns
When evaluating PepsiCo's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of PepsiCo stock have on its future price. PepsiCo autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, PepsiCo autocorrelation shows the relationship between PepsiCo stock current value and its past values and can show if there is a momentum factor associated with investing in PepsiCo.
Regressed Prices |
| Timeline |
Pair Trading with PepsiCo
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if PepsiCo position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in PepsiCo will appreciate offsetting losses from the drop in the long position's value.Moving together with PepsiCo Stock
| 0.82 | KO | Coca Cola Aggressive Push | PairCorr |
| 0.81 | KDP | Keurig Dr Pepper | PairCorr |
| 0.64 | KOF | Coca Cola Femsa | PairCorr |
Moving against PepsiCo Stock
| 0.82 | COCO | Vita Coco | PairCorr |
| 0.76 | ZVIA | Zevia Pbc | PairCorr |
| 0.69 | KR | Kroger Company Earnings Call This Week | PairCorr |
| 0.67 | STKL | SunOpta | PairCorr |
| 0.64 | FIZZ | National Beverage Corp | PairCorr |
The ability to find closely correlated positions to PepsiCo could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace PepsiCo when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back PepsiCo - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling PepsiCo to buy it.
The correlation of PepsiCo is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as PepsiCo moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if PepsiCo moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for PepsiCo can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Additional Tools for PepsiCo Stock Analysis
When running PepsiCo's 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 the 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.