PepsiCo Inc (PEP) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
PepsiCo Inc stock (PEP) is currently trading at $152.74. PepsiCo Inc PE ratio is 26.33. PepsiCo Inc PS ratio (Price-to-Sales) is 2.30. Analyst consensus price target for PEP is $171.24. WallStSmart rates PEP as Hold.
PepsiCo Inc (PEP) stock price prediction for 2030: Base case $148.26. Bull case $185.32. Bear case $111.19. See full PEP 2030 price forecast and methodology on WallStSmart.
- PEP PE ratio analysis and historical PE chart
- PEP PS ratio (Price-to-Sales) history and trend
- PEP intrinsic value — DCF, Graham Number, EPV models
- PEP stock price prediction 2025 2026 2027 2028 2029 2030
- PEP fair value vs current price
- PEP insider transactions and insider buying
- Is PEP undervalued or overvalued?
- PepsiCo Inc financial analysis — revenue, earnings, cash flow
- PEP Piotroski F-Score and Altman Z-Score
- PEP analyst price target and Smart Rating
PepsiCo Inc
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PEP Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · PepsiCo Inc (PEP)
PEP trades at a significant discount to its Graham intrinsic value of $280.33, offering a 46% margin of safety — a level value investors typically seek before buying.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
PepsiCo Inc (PEP) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, return on equity, eps growth. Concerns around peg ratio and price/book. Fundamentals are solid but monitor weak areas for improvement.
PepsiCo Inc (PEP) Key Strengths (4)
Mega-cap company, among the largest in the world
Every $100 of shareholder equity generates $43 in profit
Earnings per share surging 67.50% year-over-year
79.93% of shares held by major funds and institutions
Supporting Valuation Data
PepsiCo Inc (PEP) Areas to Watch (6)
Very expensive relative to growth, significant premium
Very expensive at 10.7x book value
Thin operating margins with cost pressures present
Modest revenue growth at 5.60%
Thin profit margins with limited profitability
Revenue is fairly priced at 2.30x sales
Supporting Valuation Data
PepsiCo Inc (PEP) Detailed Analysis Report
Overall Assessment
This company scores 59/100 in our Smart Analysis, earning a C grade. Out of 10 metrics analyzed, 4 register as strengths (avg 10.0/10) while 6 fall into concern territory (avg 3.7/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Market Cap, Return on Equity, EPS Growth. Profitability is solid with Return on Equity at 42.80%. Growth metrics are encouraging with EPS Growth at 67.50%.
The Bear Case
The primary concerns are PEG Ratio, Price/Book, Operating Margin. Some valuation metrics including PEG Ratio (3.20), Price/Sales (2.30), Price/Book (10.71) suggest expensive pricing. Growth concerns include Revenue Growth at 5.60%, which may limit upside. Profitability pressure is visible in Operating Margin at 14.10%, Profit Margin at 8.77%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether PEG Ratio improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 42.80% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at 5.60% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Market Cap, Return on Equity) and negatives (PEG Ratio, Price/Book). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
WallStSmart Analysis Synopsis
Data-driven financial summary for PepsiCo Inc (PEP) · CONSUMER DEFENSIVE › BEVERAGES - NON-ALCOHOLIC
The Big Picture
PepsiCo Inc operates as a stable business with moderate growth and solid fundamentals. Revenue reached 93.9B with 6% growth year-over-year. Profit margins are thin at 8.8%, typical for companies in this phase that are reinvesting heavily in growth.
Key Findings
ROE of 4280.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Generating 4.7B in free cash flow and 6.6B in operating cash flow. Earnings are translating into actual cash generation.
What to Watch Next
Margin expansion: can PepsiCo Inc push profit margins above 15% as the business scales?
Dividend sustainability with a current yield of 3.5%. Watch payout ratio and free cash flow coverage.
Sector dynamics: monitor BEVERAGES - NON-ALCOHOLIC industry trends, competitive moves, and regulatory changes that could impact PepsiCo Inc.
Bottom Line
PepsiCo Inc offers stability with moderate growth and solid fundamentals. The valuation may present an opportunity for patient investors, though limited growth means returns will likely come from dividends and modest capital appreciation rather than explosive gains.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About PepsiCo Inc(PEP)
NASDAQ
CONSUMER DEFENSIVE
BEVERAGES - NON-ALCOHOLIC
USA
PepsiCo, Inc. is an American based multinational food, snack, and beverage corporation headquartered in Harrison, New York, in the hamlet of Purchase. PepsiCo's business encompasses all aspects of the food and beverage market. It oversees the manufacturing, distribution, and marketing of its products.