(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 | 71.6% |
| 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) 7.0
| Net Income: 6.65b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA 5.02 > 1.0 |
| NWC/Revenue: -2.86% < 20% (prev -3.77%; Δ 0.91% < -1%) |
| CFO/TA 0.14 > 3% & CFO 14.70b > Net Income 6.65b |
| Net Debt (42.72b) to EBITDA (13.58b): 3.15 < 3 |
| Current Ratio: 0.91 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.37b) vs 12m ago -0.44% < -2% |
| Gross Margin: 54.01% > 18% (prev 0.55%; Δ 5346 % > 0.5%) |
| Asset Turnover: 93.85% > 50% (prev 91.45%; Δ 2.40% > 0%) |
| Interest Coverage Ratio: 8.94 > 6 (EBITDA TTM 13.58b / Interest Expense TTM 1.05b) |
Altman Z'' 3.33
| A: -0.03 (Total Current Assets 28.72b - Total Current Liabilities 31.50b) / Total Assets 106.56b |
| B: 0.68 (Retained Earnings 72.20b / Total Assets 106.56b) |
| C: 0.09 (EBIT TTM 9.37b / Avg Total Assets 103.54b) |
| D: 0.65 (Book Value of Equity 56.62b / Total Liabilities 87.02b) |
| Altman-Z'' Score: 3.33 = A |
Beneish M -3.43
| DSRI: 0.99 (Receivables 12.63b/12.09b, Revenue 97.17b/91.92b) |
| GMI: 1.02 (GM 54.01% / 54.93%) |
| AQI: 0.38 (AQ_t 0.17 / AQ_t-1 0.46) |
| SGI: 1.06 (Revenue 97.17b / 91.92b) |
| TATA: -0.08 (NI 6.65b - CFO 14.70b) / TA 106.56b) |
| Beneish M-Score: -3.43 (Cap -4..+1) = AA |
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 | 157.3 | -7.8% |
| Analysts Target Price | 157.3 | -7.8% |
| ValueRay Target Price | 180.2 | 5.7% |
PEP Fundamental Data Overview January 31, 2026
P/E Forward = 17.3611
P/S = 2.2066
P/B = 10.4864
P/EG = 2.9949
Revenue TTM = 97.17b USD
EBIT TTM = 9.37b USD
EBITDA TTM = 13.58b USD
Long Term Debt = 44.11b USD (from longTermDebt, last quarter)
Short Term Debt = 6.74b USD (from shortTermDebt, last quarter)
Debt = 50.85b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 42.72b USD (from netDebt column, last quarter)
Enterprise Value = 246.00b USD (203.81b + Debt 50.85b - CCE 8.66b)
Interest Coverage Ratio = 8.94 (Ebit TTM 9.37b / Interest Expense TTM 1.05b)
EV/FCF = 20.62x (Enterprise Value 246.00b / FCF TTM 11.93b)
FCF Yield = 4.85% (FCF TTM 11.93b / Enterprise Value 246.00b)
FCF Margin = 12.28% (FCF TTM 11.93b / Revenue TTM 97.17b)
Net Margin = 6.85% (Net Income TTM 6.65b / Revenue TTM 97.17b)
Gross Margin = 54.01% ((Revenue TTM 97.17b - Cost of Revenue TTM 44.69b) / Revenue TTM)
Gross Margin QoQ = 53.57% (prev 54.66%)
Tobins Q-Ratio = 2.31 (Enterprise Value 246.00b / Total Assets 106.56b)
Interest Expense / Debt = 0.52% (Interest Expense 264.0m / Debt 50.85b)
Taxrate = 21.40% (713.0m / 3.33b)
NOPAT = 7.36b (EBIT 9.37b * (1 - 21.40%))
Current Ratio = 0.91 (Total Current Assets 28.72b / Total Current Liabilities 31.50b)
Debt / Equity = 2.62 (Debt 50.85b / totalStockholderEquity, last quarter 19.39b)
Debt / EBITDA = 3.15 (Net Debt 42.72b / EBITDA 13.58b)
Debt / FCF = 3.58 (Net Debt 42.72b / FCF TTM 11.93b)
Total Stockholder Equity = 18.57b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.42% (Net Income 6.65b / Total Assets 106.56b)
RoE = 35.83% (Net Income TTM 6.65b / Total Stockholder Equity 18.57b)
RoCE = 14.95% (EBIT 9.37b / Capital Employed (Equity 18.57b + L.T.Debt 44.11b))
RoIC = 10.94% (NOPAT 7.36b / Invested Capital 67.32b)
WACC = 5.21% (E(203.81b)/V(254.66b) * Re(6.41%) + D(50.85b)/V(254.66b) * Rd(0.52%) * (1-Tc(0.21)))
Discount Rate = 6.41% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.95%
Shares Correlation 3-Years: -100.0 | Cagr: -0.33%
[DCF Debug] Terminal Value 87.51% ; FCFF base≈9.64b ; Y1≈10.94b ; Y5≈14.94b
Fair Price DCF = 290.2 (EV 439.59b - Net Debt 42.72b = Equity 396.86b / Shares 1.37b; r=5.90% [WACC]; 5y FCF grow 15.80% → 2.90% )
EPS Correlation: -21.82 | EPS CAGR: -42.08% | SUE: -4.0 | # QB: 0
Revenue Correlation: 28.76 | Revenue CAGR: -1.41% | SUE: 0.05 | # QB: 0
EPS next Quarter (2026-03-31): EPS=1.57 | Chg30d=-0.003 | Revisions Net=-2 | Analysts=13
EPS next Year (2026-12-31): EPS=8.56 | Chg30d=-0.011 | Revisions Net=-3 | Growth EPS=+5.5% | Growth Revenue=+3.8%