PepsiCo, Inc. (PEP) DCF Valuation
Two independent models estimate PepsiCo, Inc.'s fair value between $55.69 (conservative case) and $221.09 (analyst consensus).
What would today's price require?
$144.32 is justified only if free cash flow grows about +14.7% a year for the next decade — faster than the company has actually grown.
Current Price
$144.32
Fair-Value Range
$55.69 – $221.09
Market-Implied Growth
+14.7%/yr
vs +6.6% 5Y actual
PEP DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $7.1B · 1.37B shares · net debt $40.0B
Estimated Fair Value
$55.69
-61.4% vs $144.32
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $144.32; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $76.29 | $81.70 | $88.10 | $95.77 | $105 |
| 9.0% | $61.41 | $65.11 | $69.38 | $74.36 | $80.24 |
| 10.0% | $50.08 | $52.71 | $55.69 | $59.09 | $63.02 |
| 11.0% | $41.17 | $43.09 | $45.25 | $47.67 | $50.42 |
| 12.0% | $33.98 | $35.43 | $37.03 | $38.81 | $40.80 |
About PepsiCo, Inc.
PepsiCo, Inc. is a global enterprise that creates, promotes, and supplies a diverse array of drinks and easy-to-prepare food items across the globe. Its operations are structured into seven primary divisions: Frito-Lay North America, Quaker Foods North America, PepsiCo Beverages North America, Latin America, Europe, Africa/Middle East/South Asia, and the Asia Pacific, Australia, New Zealand, and China Region. The company's extensive product catalog encompasses popular snack foods like various dips, cheese snacks, spreads, and a range of chips (including corn, potato, and tortilla varieties). Its pantry staples feature cereals, rice, pasta, baking mixes, beverage syrups, granola bars, grits, oatmeal, rice cakes, and ready-made side dishes. In the beverage sector, PepsiCo offers concentrated syrups, fountain beverages, pre-packaged drinks, ready-to-consume teas, coffees, fruit juices, dairy-based items, and home carbonation systems with associated goods. PepsiCo reaches its broad clientele, which includes wholesale partners, food service providers, various retail outlets like supermarkets, pharmacies, convenience shops, discount stores, large-format retailers, membership-based stores, hard discount retailers, online merchants, and approved independent bottlers. This widespread distribution is achieved via direct store delivery, customer warehouse systems, and comprehensive distributor networks, along with direct sales to consumers through digital commerce channels and retail partners. Established in 1898, the corporation maintains its principal office in Purchase, New York.
- Sector
- Consumer Defensive
- Industry
- Beverages - Non-Alcoholic
- CEO
- Ramon Luis Laguarta