PepsiCo, Inc. engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide. The company operates through six segments: PepsiCo Foods North America; PepsiCo Beverages North America; International Beverages Franchise; Europe, Middle East and Africa; Latin America Foods; and Asia Pacific Foods.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS. Shaded region = analyst consensus for the current and next fiscal year (23 analysts).
| Parameter | BaseValue |
|---|---|
Initial Cash Flow | |
| Growth Rate (Yr 1-5) | % |
| Growth Rate (Yr 6-10) | % |
| Terminal Growth Rate | % |
| Discount Rate | % |
Base Case $78.25 Implied EV: $149.39B |
What growth rate is the market pricing in at $134?
The market implies +12.0% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +12.7%, reflecting heavy growth investment.
Wide moat with strength across all dimensions. Revenue Predictability is the standout factor.
"Market is pessimistic — investigate whether fears are temporary or structural"
Price far exceeds estimated intrinsic value — significant downside risk at current levels
