Pepsico operates worldwide beverage, snack and food businesses. The company sells its products to authorized bottlers, independent distributors, and retailers. The company was founded in 1898 and is based in Purchase, New York.
PEP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for PEP, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Pepsico Inc ranked in the 20th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Pepsico Inc ended up being:
The company's compound free cash flow growth rate over the past 5.45 years comes in at -0.04%; that's greater than merely 20.05% of US stocks we're applying DCF forecasting to.
Pepsico Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than just 17.86% of tickers in our DCF set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than just 0% of stocks in its sector (Consumer Defensive).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BF.B, HRL, PPC, ATGE, and MGPI can be thought of as valuation peers to PEP, in the sense that they are in the Consumer Defensive sector and have a similar price forecast based on DCF valuation.
PepsiCo Inc. said Friday it would suspend political donations, joining a long list of companies that are re-evaluating or halting political donations following a move to challenge U.S. President-elect Joe Biden's victory. Last week, five people lost their lives, including a police officer, when supporters of President Donald Trump stormed the Capitol in an attempt to disrupt the formal recognition of his election defeat. "We are suspending all political contributions while conducting a full review to ensure they align with our company's values and our shared vision going forward," the snacks and beverage maker said in a statement…. Keep on reading: PepsiCo suspends all political contributions following Capitol violence
PLANO, Texas , Jan. 15, 2021 /PRNewswire/ -- While Doritos has been a Super Bowl fixture for more than two decades, this year the brand is bringing a whole new dimension to gameday with the highly anticipated return of Doritos 3D Crunch. To mark the occasion, Doritos, one of the flagship brands from PepsiCo's Frito-Lay division, today debuted its Super Bowl campaign, #FlatMatthew, with a cliff-hanging teaser that leaves fans guessing who exactly the commercial's secret star could be. Fans can get a first glimpse of the commercial in a teaser video Doritos dropped today [ see here ], which features Jimmy Kimmel introducing his mysterious talk show guest to a shocked Mindy Kaling . "Did you see him backstage? He's got a whole new look. Like a look that no one's ever had before," says Kimm...