PepsiCo, Inc.

NasdaqGS:PEP Stock Report

Market Cap: US$215.0b

PepsiCo Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 ($158.74) is trading below our estimate of fair value ($287)

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 Ratio23.3x
EarningsUS$9.36b
Market CapUS$215.02b

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 Average23.2x
KO Coca-Cola
26.1x8.4%US$269.6b
MNST Monster Beverage
32.5x11.5%US$52.3b
KDP Keurig Dr Pepper
19.1x6.1%US$42.8b
KOF Coca-Cola FEMSA. de
15.3x12.1%US$16.5b
PEP PepsiCo
23.3x9.1%US$215.0b

Price-To-Earnings vs Peers: PEP is expensive based on its Price-To-Earnings Ratio (23.3x) compared to the peer average (23.2x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
PEP 23.3xIndustry Avg. 17.9xNo. of Companies3PE01632486480+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PEP is expensive based on its Price-To-Earnings Ratio (23.3x) compared to the Global Beverage industry average (17.9x).

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 Ratio23.3x
Fair PE Ratio28.5x

Price-To-Earnings vs Fair Ratio: PEP is good value based on its Price-To-Earnings Ratio (23.3x) compared to the estimated Fair Price-To-Earnings Ratio (28.5x).

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$158.74
US$181.94
+14.6%
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$151.00n/a22
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
Nov ’23US$180.76
US$183.10
+1.3%
5.4%US$200.00US$164.00US$164.8720

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

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