PepsiCo, Inc.

NasdaqGS:PEP Stock Report

Market Cap: US$210.2b

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 ($152.79) is trading below our estimate of fair value ($283.71)

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 Ratio22.7x
EarningsUS$9.36b
Market CapUS$210.23b

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 Average23x
KO Coca-Cola
25.9x8.9%US$269.0b
MNST Monster Beverage
31.3x11.4%US$49.5b
KDP Keurig Dr Pepper
19.3x6.3%US$43.9b
KOF Coca-Cola FEMSA. de
15.4x12.0%US$16.5b
PEP PepsiCo
22.7x9.1%US$210.2b

Price-To-Earnings vs Peers: PEP is good value based on its Price-To-Earnings Ratio (22.7x) compared to the peer average (23x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ASII Accredited Solutions
0.5xn/aUS$1.33m
VWES.Q Vintage Wine Estates
n/an/aUS$5.99k
No more companies available in this PE range
PEP 22.7xIndustry Avg. 18.2xNo. of Companies3PE01632486480+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PEP is expensive based on its Price-To-Earnings Ratio (22.7x) compared to the Global Beverage industry average (18.2x).

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 Ratio22.7x
Fair PE Ratio28.4x

Price-To-Earnings vs Fair Ratio: PEP is good value based on its Price-To-Earnings Ratio (22.7x) compared to the estimated Fair Price-To-Earnings Ratio (28.4x).

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
CurrentUS$152.79
US$181.13
+18.5%
5.7%US$198.00US$148.00n/a21
Dec ’25US$163.45
US$181.94
+11.3%
5.6%US$198.00US$148.00n/a21
Nov ’25US$165.59
US$181.94
+9.9%
5.6%US$198.00US$148.00n/a21
Oct ’25US$171.38
US$182.80
+6.7%
5.3%US$198.00US$151.00n/a22
Sep ’25US$172.88
US$182.35
+5.5%
5.5%US$200.00US$151.00n/a22
Aug ’25US$174.96
US$182.17
+4.1%
5.6%US$200.00US$151.00n/a22
Jul ’25US$162.89
US$185.46
+13.9%
6.9%US$210.00US$151.00n/a23
Jun ’25US$172.90
US$187.21
+8.3%
6.7%US$210.00US$151.00n/a22
May ’25US$175.15
US$187.21
+6.9%
6.6%US$210.00US$151.00n/a23
Apr ’25US$172.98
US$186.93
+8.1%
6.6%US$210.00US$151.00n/a23
Mar ’25US$164.59
US$186.88
+13.5%
6.6%US$210.00US$151.00n/a23
Feb ’25US$171.70
US$187.26
+9.1%
7.7%US$220.00US$151.00n/a22
Jan ’25US$169.84
US$187.66
+10.5%
7.6%US$220.00US$151.00n/a22
Dec ’24US$168.69
US$188.26
+11.6%
7.5%US$220.00US$151.00US$163.4522
Nov ’24US$164.87
US$187.55
+13.8%
7.5%US$220.00US$151.00US$165.5921
Oct ’24US$169.44
US$197.21
+16.4%
7.7%US$220.00US$156.00US$171.3819
Sep ’24US$175.32
US$198.42
+13.2%
7.5%US$220.00US$156.00US$172.8819
Aug ’24US$186.82
US$198.90
+6.5%
7.3%US$220.00US$156.00US$174.9620
Jul ’24US$185.22
US$199.47
+7.7%
5.5%US$220.00US$176.00US$162.8919
Jun ’24US$182.19
US$199.00
+9.2%
5.5%US$220.00US$176.00US$172.9020
May ’24US$191.68
US$195.73
+2.1%
8.3%US$220.00US$141.00US$175.1522
Apr ’24US$182.30
US$186.74
+2.4%
6.9%US$205.00US$141.00US$172.9823
Mar ’24US$171.33
US$185.87
+8.5%
7.1%US$205.00US$141.00US$164.5923
Feb ’24US$171.56
US$187.00
+9.0%
7.8%US$210.00US$141.00US$171.7022
Jan ’24US$180.66
US$184.33
+2.0%
8.0%US$210.00US$141.00US$169.8421
Dec ’23US$185.90
US$181.38
-2.4%
7.1%US$200.00US$141.00US$168.6921

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 Analysis2024/12/20 04:59
End of Day Share Price 2024/12/20 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