PEP

PepsiCo, Inc.

Fundamental data last updated:June 7, 2026

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company profile

SECTOR

Consumer Defensive

industry

Beverages - Non-Alcoholic

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

07/16/2026

Business Summary

PepsiCo, Inc. manufactures, markets, distributes, and sells various beverages and convenient foods worldwide. The company operates through seven segments: Frito-Lay North America; Quaker Foods North America; PepsiCo Beverages North America; Latin America; Europe; Africa, Middle East and South Asia; and Asia Pacific, Australia and New Zealand and China Region. It provides dips, cheese-flavored snacks, and spreads, as well as corn, potato, and tortilla chips; cereals, rice, pasta, mixes and syrups, granola bars, grits, oatmeal, rice cakes, simply granola, and side dishes; beverage concentrates, fountain syrups, and finished goods; ready-to-drink tea, coffee, and juices; dairy products; and sparkling water makers and related products. It serves wholesale and other distributors, foodservice customers, grocery stores, drug stores, convenience stores, discount/dollar stores, mass merchandisers, membership stores, hard discounters, e-commerce retailers and authorized independent bottlers, and others through a network of direct-store-delivery, customer warehouse, and distributor networks, as well as directly to consumers through e-commerce platforms and retailers. The company was founded in 1898 and is headquartered in Purchase, New York.

 


VALUATION

P/E

22.53

Market Cap ($M USD)

$196.96B

Forward P/E

13.50

PEG

0.20

PRICE TO SALES

2.06

PRICE TO BOOK

9.21

EV / EBITDA

15.86

5-Year Average P/E

Free Cash Flow Yield

4.49%

DCF Value

$218.81

Graham Number

$47.45

Price to FCF

22.28

EV to FCF

27.05

Earnings Yield

4.44%

FCF Yield

4.49%

DIVIDEND

Yield

3.95%

Annual Payout

$5.69

Payout Ratio

88.31%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$6.40

Next Year EPS Growth Estimate

$10.67

Next Year Revenue Growth Estimate

$11.27T

Return on Equity (ROE)

43.94%

FREE CASH FLOW

Operating Margin

14.79%

Debt-to-Equity

2.45

Piotroski F-Score

6

Altman Z-Score

3.45

Return on Invested Capital (ROIC)

18.54%

Current Ratio

0.90

Quick Ratio

0.90

Net Debt to EBITDA

2.80

Interest Coverage

12.19

Gross Profit margin

54.06%

FCF PER SHARE

$6.47

REVENUE PER SHARE

$69.82

Gainseekers Quantitative Analysis

Summary

PepsiCo’s valuation presents a compelling narrative of market mispricing. With a DCF value significantly higher than recent pricing, the stock appears undervalued. The Forward P/E of 13.79 suggests a more attractive entry point compared to its current P/E, indicating potential growth. The Altman Z-score of 3.49 signals financial stability, while an earnings yield of 4.35% highlights decent profitability. Overall, the market seems to be underestimating PepsiCo’s intrinsic value and growth prospects.

AI Exposure / Tech Reliance

In the realm of AI and tech resilience, PepsiCo stands poised to leverage its robust distribution networks and brand strength. As a leader in the non-alcoholic beverage industry, it can integrate AI for supply chain optimization and consumer insights. This adaptability ensures it remains competitive in a rapidly evolving market.

The Bull Case

For the value-driven investor, PepsiCo offers a compelling case. With an impressive ROIC of 18.54%, the company demonstrates exceptional capital efficiency, translating into robust shareholder returns. A Piotroski F-Score of 6 indicates solid financial health, while a gross profit margin of 54.06% underscores its pricing power. The FCF yield, though modest, reflects steady cash generation, making it an attractive proposition for those seeking stability and growth.

The Bear Case

Despite its strengths, PepsiCo faces structural challenges. The Price/Book ratio of 9.40 and Price/Sales of 2.11 suggest a premium valuation, potentially limiting upside. Additionally, a Debt/Equity ratio of 2.45 raises concerns about leverage, even with decent interest coverage. The stock's proximity to its 52-week high further implies limited short-term appreciation, warranting caution for risk-averse investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$174.00

Institutional Ownership %

1-Year Beta

0.39

Insider Buying % (6 Mo)

Distance to 52-Week High

19.01%

Distance to 52-Week Low

11.44%

EARNINGS SURPRISE %

4.55%

50-DAY SMA

$153.40

200-DAY SMA

$150.68

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.