PepsiCo, Inc. (PEP) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+31.4%

$183.93

vs $140.01 price

Levered DCF

$144.00

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

3.52

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	23.84×	21.79×	25.77×	27.97×	31.53×	28.85×	26.13×	12.5×
P/B	9.63×	11.57×	12.63×	14.54×	14.96×	15.27×	12.93×	10.77×
P/S	2.09×	2.27×	2.55×	2.89×	3.02×	2.92×	2.85×	2.42×
EV / EBITDA	15.27×	14.7×	17.05×	19.02×	18.47×	18.97×	17.21×	13.72×
Gross margin	54.1%	54.6%	54.2%	53.0%	53.3%	54.8%	55.1%	54.6%
Operating margin	12.2%	14.0%	13.1%	13.3%	14.0%	14.3%	15.3%	15.6%
Net margin	8.8%	10.4%	9.9%	10.3%	9.6%	10.1%	10.9%	19.4%
Current ratio	0.85×	0.82×	0.85×	0.8×	0.83×	0.98×	0.86×	0.99×
Debt / equity	2.45×	2.49×	2.41×	2.31×	2.54×	3.32×	2.2×	2.23×
Interest coverage	10.26×	14.02×	14.63×	12.26×	5.99×	8.94×	11.01×	6.63×
Dividend yield	3.9%	3.5%	2.9%	2.5%	2.4%	2.7%	2.8%	3.2%
Payout ratio	92.7%	75.5%	73.6%	69.3%	76.3%	77.4%	72.5%	39.4%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	40.4%	53.1%	49.0%	52.0%	47.5%	52.9%	49.5%	86.2%
Return on invested capital	11.3%	13.7%	12.7%	13.9%	12.3%	10.8%	13.2%	17.0%
Return on assets	7.7%	9.6%	9.0%	9.7%	8.2%	7.7%	9.3%	16.1%
Free cash flow yield	3.9%	3.4%	3.4%	2.2%	2.9%	3.1%	2.8%	3.9%
Earnings yield	4.2%	4.6%	3.9%	3.6%	3.2%	3.5%	3.8%	8.0%
Enterprise value	$237.3B	$245.2B	$268.6B	$283.9B	$275.3B	$241.8B	$218.2B	$179.9B
Net debt / EBITDA	2.62×	2.18×	2.22×	2.32×	2.36×	2.86×	2.13×	1.8×
Cash conversion cycle (days)	-5	-9	-12	-7	-14	-10	-14	-10