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 18th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 73.5%. As for the metrics that stood out in our discounted cash flow analysis of Pepsico Inc, consider:
In the past 5.64 years, Pepsico Inc has a compound free cash flow growth rate of -0.03%; that's higher than only 18.63% of free cash flow generating stocks in the Consumer Defensive sector.
Pepsico Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 20.11% of tickers in our DCF set.
PEP's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than merely 20.11% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Defensive that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as PEP, try SYY, ALCO, KO, EL, and GNCIQ.
PepsiCo's (PEP) third quarter earnings smasher (the widest top- and bottom-line beat of the past five years at least) did not catch me by surprise. Fueled by expected strength in food and snacks across all regions and resilience in beverages, the New York-based packaged foods company saw organic revenue and...
D.M. Martins Research on Seeking Alpha | October 1, 2020
Some of the stocks that may grab investor focus today are: Wall Street expects PepsiCo, Inc. (NASDAQ: PEP ) to report quarterly earnings at $1.49 per share on revenue of $17.23 billion before the opening bell. PepsiCo shares rose 0.4% to $139.10 in pre-market trading. Selecta Biosciences Inc (NASDAQ: SELB ) disclosed that its Phase 2 COMPARE trial did not meet its primary endpoint of statistical superiority. Selecta Biosciences … Full story available on Benzinga.com