PEP

PepsiCo, Inc.

Fundamental data last updated:May 12, 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

23.36

Market Cap ($M USD)

$204.23B

Forward P/E

14.00

PEG

0.21

PRICE TO SALES

2.14

PRICE TO BOOK

9.55

EV / EBITDA

16.35

5-Year Average P/E

Free Cash Flow Yield

4.33%

DCF Value

$230.78

Graham Number

$47.45

Price to FCF

23.10

EV to FCF

27.88

Earnings Yield

4.28%

FCF Yield

4.33%

DIVIDEND

Yield

3.81%

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

3.52

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 potential mispricing. Despite a snapshot price that traded below its DCF value, the market seems to overlook its intrinsic worth. The Forward P/E of 14.49 suggests a more attractive valuation compared to its current P/E, indicating growth expectations. Meanwhile, the Altman Z-score of 3.52 underscores financial stability, while an earnings yield of 4.14% reflects solid profitability. This combination of metrics suggests a company with both growth potential and financial resilience.

AI Exposure / Tech Reliance

In the realm of AI and tech adaptation, PepsiCo stands in a unique position. As a leader in the non-alcoholic beverage industry, its focus on consumer trends and supply chain efficiencies makes it well-suited to leverage AI for operational improvements. However, its core business remains largely insulated from rapid tech disruptions, providing a stable foundation amidst digital shifts.

The Bull Case

For the value-driven investor, PepsiCo offers a robust case. With an ROIC of 18.54%, the company demonstrates exceptional capital efficiency, translating into strong shareholder returns. The FCF Yield, though modest, indicates ongoing cash generation, while a Piotroski F-Score of 6 suggests decent financial health. Coupled with a gross profit margin of 54.06%, PepsiCo's pricing power and operational prowess make it an attractive buy for those seeking growth at a reasonable price.

The Bear Case

Yet, structural risks loom large. The Price/Book ratio of 9.88 and Price/Sales of 2.21 highlight a potentially overvalued stock, raising concerns about its premium valuation. Additionally, a Debt/Equity ratio of 2.45 signals significant leverage, which could strain financial flexibility. Trading close to its 52-week high further suggests technical overextension, making it vulnerable to market corrections.

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

14.77%

Distance to 52-Week Low

14.60%

EARNINGS SURPRISE %

4.55%

50-DAY SMA

$156.71

200-DAY SMA

$150.23

⚠️ 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.