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.
PepsiCo, Inc.
- Free Cash Flow (FCF) $6.99B
- Free Cash Flow To Equity (FCFE) $-1.71B
- Dividends Paid $-5.82B
- Debt Repayment $-8.7B
- Net Stock Repurchased $106M
Discounted Cash Flow
Use the Discounted Cash Flow (DCF) tool to estimate the intrinsic value of PepsiCo, Inc. stock.
Assumptions | |||
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Forecast Period | |||
Required Return | |||
Low | Mid | High | |
Revenue Growth | |||
FCFE Margin | |||
Perpetual Growth | |||
Terminal P/FCFE |
The number of assumptions to make for each forecast.
The number of years to forecast future cash flows. These future cash flows are used to determine the intrinsic present value for the stock.
It is generally recommended to select a longer period for more established companies with stable financial histories.
The compounding annual rate of return required, according to your investment objectives. This is used to discount back future cash flows.
Estimate the annual compounding revenue growth rate. You can use the historical compounding annual growth rates provided below as a guide.
- 1 Year 12.13%
- 3 Years 6.65%
- 5 Years 5.32%
- 10 Years 5.32%
Estimate levered free cash flow (FCFE) as a percentage of revenue. You can use the historical margins provided below as a guide.
- 1 Year -2.15%
- 3 Years -0.6%
- 5 Years -0.16%
- 10 Years -0.16%
Estimate the compounding annual growth rate at which revenues will grow in perpetuity after the forecast period. This is the first method used to calculate the terminal value.
Values of between 2% and 5% are generally recommended.
Estimate the price to levered free cash flow (P/FCFE) for the stock after the forecast period. This is the second method used to calculate the terminal value.
This method for calculating the terminal value can be preferred for shorter forecast periods. You can use the historical rations provided below as a guide.
- 1 Year -138.99
- 3 Years -207.68
- 5 Years -139.45
- 10 Years -139.45
Chief Executive Officer (CEO) | Mr. Ramon Laguarta |
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Full-Time Employees | 309K |
Industry | Beverages—Non-Alcoholic |
Sector | Consumer Defensive |
Country | US |
Website | https://www.pepsico.com |