Added to YB: 2024-10-14
Pitch date: 2024-10-12
PEP [bullish]
PepsiCo, Inc.
-9.69%
current return
Author Info
Kroker Equity Research is a value investor that uses Discounted Cash Flow (DCF) Model or the Excess Returns Model to value stocks. Sign up for their newsletter.
Company Info
PepsiCo, Inc. engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide.
Market Cap
$206.1B
Pitch Price
$166.81
Price Target
210.00 (+39%)
Dividend
3.82%
EV/EBITDA
13.37
P/E
28.35
EV/Sales
2.69
Sector
Beverages
Category
value
PepsiCo - Valuation Update
PEP: Dividend Aristocrat, slightly undervalued at $173 vs $187 fair value. 2.6% rev CAGR to $104B by 2029, 15.4% EBIT margin, 11.1% net income margin. Bull case $210, bear $164. Strong pricing power, diverse portfolio, Celsius partnership. Challenges: Quaker recall, inflation. 3.2% dividend yield, consistent growth. 5-yr avg P/E 23.52x, now 20.55x.
Read full article (5 min)