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:
We started the process of determining a valid price forecast for Pepsico Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Pepsico Inc ranked in the 17th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for PEP, they are:
The company's compound free cash flow growth rate over the past 5.56 years comes in at -0.05%; that's greater than only 21.58% of US stocks we're applying DCF forecasting to.
As a business, PEP is generating more cash flow than 88.66% of positive cash flow stocks in the Consumer Defensive.
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 26.19% 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 SAM, EPC, PPC, SDI, and CWGL.
WASHINGTON (AP) - The Washington Redskins are undergoing a "thorough review" of their nickname. The team said Friday it has been talking to the NFL for weeks about the subject. In a statement, the team said recent events around the U.S. and feedback from the community prompted the formal review. "This process allows the team to take into account not only the proud tradition and history of the franchise but also input from our alumni, the organization, sponsors, the National Football League and the local community it is proud to represent on and off the field," owner Dan Snyder said. NFL Commissioner Roger Goodell said, "In the last few weeks, we have had ongoing discussions with Dan, and we are supportive of this important step." The recent national debate over racism renewed calls for ...
At least one sponsor is speaking. Not long after Adweek reported that big-name sponsors, shareholders and investors like Nike and PepsiCo were putting pressure on owner Daniel Snyder to change the Washington Redskins moniker, FedEx — the company that’s name graces the team’s home field — confirmed it had done so. “We have communicated to…
Once again, pressure is mounting for owner Daniel Snyder to change the Redskins’ name. This time, it is coming from investment firms and shareholders tied to the team’s sponsors and local politicians. If Snyder doesn’t make the change, he could stand to lose sponsors such as Nike, FedEx and PepsiCo. He also wouldn’t be able…
In its 35th year of honoring the nation's most elite high school athletes, The Gatorade Company today announced Nico Young of Newbury Park High School in Newbury Park, Calif. is the 2019-20 Gatorade National Boys Track and Field Athlete of the Year. Young won the prestigious award for his accomplishments on and off the field, joining an impressive group of former Gatorade National Boys Track and Field Athlete of the Year winners who have combined for 22 gold medals and 12 National Championships.