PepsiCo, Inc.

SWX:PEP Stock Report

Market Cap: CHF 192.8b

PepsiCo Valuation

Is PEP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of PEP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PEP (CHF138) is trading below our estimate of fair value (CHF281.74)

Significantly Below Fair Value: PEP is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PEP?

Key metric: As PEP is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for PEP. This is calculated by dividing PEP's market cap by their current earnings.
What is PEP's PE Ratio?
PE Ratio22.9x
EarningsUS$9.36b
Market CapUS$214.34b

Price to Earnings Ratio vs Peers

How does PEP's PE Ratio compare to its peers?

The above table shows the PE ratio for PEP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average26.8x
NESN Nestlé
17x4.7%CHF 190.8b
KO Coca-Cola
25.8x8.9%US$270.7b
LISN Chocoladefabriken Lindt & Sprüngli
33.4x6.4%CHF 22.9b
MNST Monster Beverage
30.8x11.4%US$50.1b
PEP PepsiCo
22.9x9.1%CHF 214.3b

Price-To-Earnings vs Peers: PEP is good value based on its Price-To-Earnings Ratio (22.9x) compared to the peer average (26.9x).

Price to Earnings Ratio vs Industry

How does PEP's PE Ratio compare vs other companies in the European Beverage Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
PEP 22.9xIndustry Avg. 18.0xNo. of Companies7PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PEP is expensive based on its Price-To-Earnings Ratio (22.9x) compared to the European Beverage industry average (18x).

Price to Earnings Ratio vs Fair Ratio

What is PEP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PEP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.9x
Fair PE Ratio26.9x

Price-To-Earnings vs Fair Ratio: PEP is good value based on its Price-To-Earnings Ratio (22.9x) compared to the estimated Fair Price-To-Earnings Ratio (26.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst PEP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCHF 138.00
CHF 161.70
+17.2%
5.7%CHF 176.77CHF 132.13n/a21
Dec ’25CHF 138.00
CHF 156.94
+13.7%
5.6%CHF 170.80CHF 127.67n/a21
Nov ’25CHF 152.00
CHF 156.94
+3.3%
5.6%CHF 170.80CHF 127.67n/a21
Oct ’25CHF 152.00
CHF 154.69
+1.8%
5.3%CHF 167.55CHF 127.78n/a22
Sep ’25CHF 152.00
CHF 154.45
+1.6%
5.5%CHF 169.40CHF 127.90n/a22
Aug ’25CHF 152.00
CHF 161.95
+6.5%
5.6%CHF 177.80CHF 134.24n/a22
Jul ’25CHF 144.00
CHF 166.42
+15.6%
6.9%CHF 188.43CHF 135.49n/a23
Jun ’25CHF 144.00
CHF 168.91
+17.3%
6.7%CHF 189.47CHF 136.24n/a22
May ’25CHF 144.00
CHF 172.09
+19.5%
6.6%CHF 193.04CHF 138.81n/a23
Apr ’25CHF 144.00
CHF 168.07
+16.7%
6.6%CHF 188.82CHF 135.77n/a23
Mar ’25CHF 149.00
CHF 164.47
+10.4%
6.6%CHF 184.81CHF 132.89n/a23
Feb ’25CHF 143.00
CHF 162.40
+13.6%
7.7%CHF 190.80CHF 130.96n/a22
Jan ’25CHF 146.00
CHF 161.53
+10.6%
7.6%CHF 189.36CHF 129.97n/a22
Dec ’24CHF 150.00
CHF 169.88
+13.3%
7.5%CHF 198.53CHF 136.26CHF 138.0022
Nov ’24CHF 150.00
CHF 168.69
+12.5%
7.5%CHF 197.87CHF 135.81CHF 152.0021
Oct ’24CHF 153.00
CHF 180.55
+18.0%
7.7%CHF 201.41CHF 142.82CHF 152.0019
Sep ’24CHF 156.00
CHF 174.30
+11.7%
7.5%CHF 193.26CHF 137.04CHF 152.0019
Aug ’24CHF 165.00
CHF 171.06
+3.7%
7.3%CHF 189.21CHF 134.17CHF 152.0020
Jul ’24CHF 167.00
CHF 179.47
+7.5%
5.5%CHF 197.94CHF 158.35CHF 144.0019
Jun ’24CHF 171.00
CHF 179.06
+4.7%
5.5%CHF 197.96CHF 158.36CHF 144.0020
May ’24CHF 163.00
CHF 175.02
+7.4%
8.3%CHF 196.72CHF 126.08CHF 144.0022
Apr ’24CHF 163.00
CHF 173.42
+6.4%
6.9%CHF 190.37CHF 130.94CHF 144.0023
Mar ’24CHF 162.00
CHF 171.84
+6.1%
7.1%CHF 189.52CHF 130.36CHF 149.0023
Feb ’24CHF 158.00
CHF 172.42
+9.1%
7.8%CHF 193.63CHF 130.01CHF 143.0022
Jan ’24CHF 173.00
CHF 170.88
-1.2%
8.0%CHF 194.67CHF 130.71CHF 146.0021
Dec ’23CHF 176.00
CHF 180.21
+2.4%
7.1%CHF 198.71CHF 140.09CHF 150.0021

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/19 15:09
End of Day Share Price 2024/12/19 00:00
Earnings2024/09/07
Annual Earnings2023/12/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

PepsiCo, Inc. is covered by 61 analysts. 18 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
John StaszakArgus Research Company
Ishan MajumdarBaptista Research
Lauren LiebermanBarclays