PepsiCo Inc (PEP) Fair Value & Analysis
Consumer Defensive · US · Market cap $188B · ISIN US7134481081
What is PepsiCo Inc really worth?
PepsiCo Inc
PEP · US
A solid business, but trading 31% above our fair value of $106.91.
Strengths
Risks
For context
Fair value as of: Aug 29, 2026
From 26 valuation models · updated 7 days ago
Share price +0.7% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- The model range is unusually wide ($56.05 to $158.35). The outcome hinges heavily on assumptions, so read the point estimate with caution.
- Solid but not exceptional quality (63/100) and above fair value, neither a clear bargain nor a standout compounder.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 29, 2026.
How to read this chart
60‑month range $122.22 – $175.40 · fair‑value band $56.05 – $158.35 · the $140.02 price screens above the $106.91 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 29, 2026.
Analysis
PepsiCo Inc (PEP) currently trades at $140.02, while our model-based Fair Value estimate is $106.91, implying the stock looks roughly 31.0% overvalued today. The Quality Score stands at 63/100 (solid quality), in the Consumer Defensive sector. Bull case: the Growth Earnings group reads highest at a median of $106.91 per share, and 2 of the 26 models we run sit above the $140.02 price. Bear case: the Earnings-Based group reads lowest at $30.70, and 24 of the 26 models stay below the price. Evidence for this calculation is high.
Over the trailing twelve months, PepsiCo Inc generated revenue of $95.4B at a net margin of 9.2%. Revenue grew 8.5% year over year. It earns a return on equity of 43.9%. Net debt stands at $40.7B. Fundamentals as of Aug 29, 2026
Our scenario range runs from $56.05 (bear case) to $158.35 (bull case); at $140.02, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 17% below its 52-week high and 14% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at −13% fair-value upside, at −24%, PEP screens richer than that median.
Fair Value models
This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $0.3181 per share, which is 0.3 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.
All 26 models by family
Widest divergence: Growth Earnings ($106.91) versus Asset-Based ($10.01). Highest evidence: FCF DCF (78).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 29, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 59 · Market factors (momentum, volatility) 51
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
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.
Full company description
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. It offers cereals, chips, dips, granola bars, oatmeal, pasta, rice, and syrups and mixes; refrigerated dips and spreads; beverage concentrates, fountain syrups, and finished goods; and ready-to-drink tea and coffee products. The company also provides SodaStream sparkling water makers and related products, as well as various dairy products under the Agusha, Chudo, and Domik v Derevne brands. 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. PepsiCo, Inc. was founded in 1898 and is based in Purchase, New York.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
PepsiCo Inc reported revenue of $93.9B in FY2025 versus $79.5B in FY2021, a compound +4.3%/yr. Reported net income was $8.2B in FY2025, compounding +2.0%/yr from FY2021.
of which total revenue +4.1 % · buybacks/dilution +0.9 %
Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).
PEP screens 31% overvalued. Compare with The Coca-Cola Company →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- ARIZONA ATHLETIC GROUNDS NAMES PEPSICO ITS OFFICIAL SOFT DRINK PARTNER IN MULTIMILLION-DOLLAR INVESTMENT THROUGH 2033
- OAC Calls on PepsiCo to Keep Obesity Treatment Coverage for Employees
- PepsiCo's North America Challenge: Temporary or Structural?
Peer Group
Beverages - Non-Alcoholic · 87 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Beverages - Non-Alcoholic median · lower = cheaper
Strength profile in five axes (Snowflake)
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
Insider activity: 40/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Beverages - Non-Alcoholic stocks, each showing price versus our Fair Value estimate (as of Aug 29, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| The Coca-Cola Company KO | $89.06 | $36.57 | −59% |
| Monster Beverage Corporation MNST | $46.70 | $35.82 | −23% |
| Nongfu Spring Co 9633 | HK$42.54 | HK$30.90 | −27% |
| Coca-Cola Europacific Partners PLC CCEP | €92.10 | €70.86 | −23% |
| Keurig Dr Pepper Inc KDP | $32.18 | $30.99 | −4% |
| Coca-Cola FEMSA, S.A. KOF | $112.58 | $108.50 | −4% |
| Coca-Cola HBC AG EEE | €53.10 | €46.77 | −12% |
| Varun Beverages Limited VBL | ₹431.00 | ₹187.49 | −56% |
| Eastroc Beverage (Group) Co 605499 | ¥123.07 | ¥107.57 | −13% |
| MIXUE Group 2097 | HK$232.60 | HK$307.46 | +32% |
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