Company Overview
PepsiCo Inc is a US-based beverages company listed on the NASDAQ NMS - GLOBAL MARKET. It produces and markets a broad range of drinks and snacks under well-known global brands. The company operates across multiple geographies, leveraging its scale, distribution, and brand strength. Its market capitalization is about USD 214 billion.
Analysis of recent data
FundamentalsPepsiCo reported USD figures for the latest annual period, with revenue of about 93.93 billion, up roughly 2.25% year over year. Net income was 8.30 billion, reflecting an 8.77% net margin. Depreciation and amortization totaled 3.45 billion, while capital expenditure was 528 million, indicating modest reinvestment needs relative to revenue.
The company’s return on equity of 43.03% and gross margin of 54.46% highlight strong profitability and efficient capital use. Operating margin of 11.92% supports consistent earnings generation. Total debt stood at 49.18 billion, balanced by 9.16 billion in cash, suggesting manageable leverage.
A beta of 0.404081 indicates limited market sensitivity, which can help sustain returns through cycles. EBIT and interest coverage were not provided, reducing visibility on leverage comfort.
Valuation
DCF / MultiplesAt a share price of 156.5 USD, PepsiCo trades at 25.96× earnings and 17.14× EV/EBITDA. The DCF fair value range is Bear 99.58, Base 177.74, and Bull 284.72.
The current price sits below the base case but above the bear case, implying moderate upside if performance holds steady. High ROE and stable margins suggest the market expects continued efficiency and disciplined capital use.
Conclusion
TakeawayPepsiCo shows strong profitability and disciplined capital management. The valuation suggests some room for upside if current trends persist. Debt remains the main watchpoint in a softer earnings environment. Long-term value creation will depend on maintaining high returns on capital.