PepsiCo Valuation
| PEP Stock | USD 160.34 1.60 1.01% |
At this time, the company appears to be fairly valued. PepsiCo holds a recent Real Value of $159.54 per share. The prevailing price of the company is $160.34. Our model determines the value of PepsiCo from analyzing the company fundamentals such as Return On Equity of 0.49, operating margin of 0.18 %, and Shares Outstanding of 1.37 B as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting PepsiCo's valuation include:
Price Book 11.1957 | Enterprise Value 254.8 B | Enterprise Value Ebitda 15.6684 | Price Sales 2.3693 | Forward PE 18.315 |
Fairly Valued
Today
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.
PepsiCo's intrinsic value may or may not be the same as its current market price of 160.34, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 160.34 | Real 159.54 | Target 177.98 | Hype 160.5 | Naive 161.96 |
The intrinsic value of PepsiCo's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence PepsiCo's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
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: 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.
PepsiCo Cash |
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PepsiCo Valuation Trend
PepsiCo's real value is important for investors to make better decisions and a more accurate overall view of PepsiCo's financial worth over time. Using both PepsiCo's enterprise value as well as its market capitalization is the best way to gauge the value of the company and is usually enough for investors to make market timing conclusions.
PepsiCo Total Value Analysis
PepsiCo is at this time forecasted to have company total value of 254.75 B with market capitalization of 217.79 B, debt of 44.66 B, and cash on hands of 6.74 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the PepsiCo fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
254.75 B | 217.79 B | 44.66 B | 6.74 B |
PepsiCo Investor Information
About 77.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.89. PepsiCo recorded earning per share (EPS) of 6.78. The entity last dividend was issued on the 6th of September 2024. The firm had 2:1 split on the 29th of May 1996. Based on the analysis of PepsiCo's profitability, liquidity, and operating efficiency, PepsiCo may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.11 | 0.12 |
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| Total Cash From Operating Activities | 7.5 B | 13.4 B |
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| Operating Income | 6.5 B | 12 B |
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PepsiCo Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. PepsiCo has an asset utilization ratio of 91.02 percent. This connotes that the Company is making $0.91 for each dollar of assets. An increasing asset utilization means that PepsiCo is more efficient with each dollar of assets it utilizes for everyday operations.PepsiCo Ownership Allocation
PepsiCo owns a total of 1.37 Billion outstanding shares. The majority of PepsiCo outstanding shares are owned by third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in PepsiCo to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in PepsiCo. Please pay attention to any change in the institutional holdings of PepsiCo as this could imply that something significant has changed or is about to change at the company. Please note that on November 11, 2024, Representative Ro Khanna of US Congress acquired under $15k worth of PepsiCo's common stock.PepsiCo Profitability Analysis
The company reported the last year's revenue of 91.47 B. Total Income to common stockholders was 9.07 B with profit before taxes, overhead, and interest of 46.05 B.PepsiCo Past Distributions to stockholders
About PepsiCo Valuation
The stock valuation mechanism determines PepsiCo's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of PepsiCo based exclusively on its fundamental and basic technical indicators. 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, and relevant financial multiples and ratios and then compare them to those of PepsiCo's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 49.6 B | 52.1 B | |
| Pretax Profit Margin | 0.11 | 0.10 | |
| Operating Profit Margin | 0.12 | 0.11 | |
| Net Profit Margin | 0.09 | 0.08 | |
| Gross Profit Margin | 0.61 | 0.63 |
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
At this time, PepsiCo's Dividends Paid is relatively stable compared to the past year. As of 11/22/2024, Dividend Paid And Capex Coverage Ratio is likely to grow to 1.64, while Dividend Yield is likely to drop 0.02. . At this time, PepsiCo's Retained Earnings are relatively stable compared to the past year. As of 11/22/2024, Earnings Yield is likely to grow to 0.05, while Retained Earnings Total Equity is likely to drop slightly above 55.7 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 6.7 B | 7 B | |
| Dividend Yield | 0.02 | 0.02 | |
| Dividend Payout Ratio | 0.62 | 0.40 | |
| Dividend Paid And Capex Coverage Ratio | 1.09 | 1.64 |
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 Growth Indicators
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.
| Common Stock Shares Outstanding | 1.4 B | |
| Quarterly Earnings Growth Y O Y | -0.049 | |
| Forward Price Earnings | 18.315 |
PepsiCo Current Valuation Indicators
PepsiCo's valuation analysis is 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.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.