PepsiCo One Year High vs. Current Valuation

PEP Stock  USD 173.57  0.84  0.49%   
Considering PepsiCo's profitability and operating efficiency indicators, PepsiCo may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in April. Profitability indicators assess PepsiCo's ability to earn profits and add value for shareholders. As of 03/28/2024, Operating Cash Flow Sales Ratio is likely to grow to 0.18, while Price To Sales Ratio is likely to drop 1.72. At this time, PepsiCo's Operating Income is relatively stable compared to the past year. As of 03/28/2024, Net Income From Continuing Ops is likely to grow to about 9.3 B, though Total Other Income Expense Net is likely to grow to (2.5 B).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.630.61
Sufficiently Up
Pretty Stable
Net Profit Margin0.07570.0928
Significantly Down
Slightly volatile
Operating Profit Margin0.110.12
Significantly Down
Slightly volatile
Pretax Profit Margin0.10.11
Significantly Down
Slightly volatile
Return On Assets0.0770.087
Fairly Down
Slightly volatile
Return On Equity0.270.47
Way Down
Pretty Stable
For PepsiCo profitability analysis, we use financial ratios and fundamental drivers that measure the ability of PepsiCo to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well PepsiCo utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between PepsiCo's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of PepsiCo over time as well as its relative position and ranking within its peers.
  
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To learn how to invest in PepsiCo Stock, please use our How to Invest in PepsiCo guide.
Is PepsiCo's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of PepsiCo. If investors know PepsiCo will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about PepsiCo listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
1.521
Dividend Share
4.945
Earnings Share
6.57
Revenue Per Share
66.476
Quarterly Revenue Growth
(0.01)
The market value of PepsiCo is measured differently than its book value, which is the value of PepsiCo that is recorded on the company's balance sheet. Investors also form their own opinion of PepsiCo's value that differs from its market value or its book value, called intrinsic value, which is PepsiCo's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because PepsiCo's market value can be influenced by many factors that don't directly affect PepsiCo's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between PepsiCo's value and its price as these two are different measures arrived at by different means. Investors typically determine if PepsiCo is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, PepsiCo's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

PepsiCo Current Valuation vs. One Year High Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining PepsiCo's current stock value. Our valuation model uses many indicators to compare PepsiCo value to that of its competitors to determine the firm's financial worth.
PepsiCo is currently under evaluation in category among related companies. It is rated top company in current valuation category among related companies . . Comparative valuation analysis is a catch-all model that can be used if you cannot value PepsiCo by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for PepsiCo's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the PepsiCo's earnings, one of the primary drivers of an investment's value.

PepsiCo Current Valuation vs. One Year High

One Year High typically refers to the highest price that a given equity instrument has reached in the last 52 weeks. In other words, it is the highest price that investors paid or were willing to pay for a given stock, fund, or ETF over the past 52 weeks of trading.

PepsiCo

One Year High

=

Highest Price in the Last 52 Weeks

 = 
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Year High value is used as an indicator to give investors an idea of how given equity may perform over mid or longer-term horizons. The One Year High may be utilized as a naive indicator of how the value of a stock is resistant or elastic over the long term investment horizon. For example, if the price of a fund or ETF is near a new One Year High, a rational investor may interpret it as a turning point and trade the instrument away or buy additional shares.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

PepsiCo

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
272.13 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

PepsiCo Current Valuation vs Competition

PepsiCo is rated top company in current valuation category among related companies. After adjusting for long-term liabilities, total market size of Consumer Staples industry is at this time estimated at about 308.46 Billion. PepsiCo totals roughly 272.13 Billion in current valuation claiming about 88% of stocks in Consumer Staples industry.

PepsiCo Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in PepsiCo, profitability is also one of the essential criteria for including it into their portfolios because, without profit, PepsiCo will eventually generate negative long term returns. The profitability progress is the general direction of PepsiCo's change in net profit over the period of time. It can combine multiple indicators of PepsiCo, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2024
Accumulated Other Comprehensive Income-15.5 B-14.8 B
Operating Income14.1 B14.8 B
Income Before Tax11.4 B6.1 B
Total Other Income Expense Net-2.7 B-2.5 B
Net Income9.1 B5.1 B
Income Tax Expense2.3 B1.5 B
Net Income Applicable To Common Shares10.2 B6.4 B
Net Income From Continuing Ops8.4 B9.3 B
Non Operating Income Net Other230 M138.4 M
Interest Income180 M283.4 M
Net Interest Income-875 M-918.8 M
Change To Netincome-600.3 M-570.3 M
Net Income Per E B T 0.75  0.58 

PepsiCo Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on PepsiCo. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of PepsiCo position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the PepsiCo's important profitability drivers and their relationship over time.

Use PepsiCo in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if PepsiCo position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in PepsiCo will appreciate offsetting losses from the drop in the long position's value.

PepsiCo Pair Trading

PepsiCo Pair Trading Analysis

The ability to find closely correlated positions to PepsiCo could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace PepsiCo when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back PepsiCo - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling PepsiCo to buy it.
The correlation of PepsiCo is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as PepsiCo moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if PepsiCo moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for PepsiCo can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your PepsiCo position

In addition to having PepsiCo in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Biotech
Biotech Theme
Companies specialized in biotechnology production and delivery of pharmaceuticals services. The Biotech theme has 47 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Biotech Theme or any other thematic opportunities.
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When determining whether PepsiCo is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if PepsiCo Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Pepsico Stock. Highlighted below are key reports to facilitate an investment decision about Pepsico Stock:
Check out Your Equity Center.
To learn how to invest in PepsiCo Stock, please use our How to Invest in PepsiCo guide.
Note that the PepsiCo information on this page should be used as a complementary analysis to other PepsiCo's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.

Complementary Tools for PepsiCo Stock analysis

When running PepsiCo's price analysis, check to measure PepsiCo's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy PepsiCo is operating at the current time. Most of PepsiCo's value examination focuses on studying past and present price action to predict the probability of PepsiCo's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move PepsiCo's price. Additionally, you may evaluate how the addition of PepsiCo to your portfolios can decrease your overall portfolio volatility.
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To fully project PepsiCo's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of PepsiCo at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include PepsiCo's income statement, its balance sheet, and the statement of cash flows.
Potential PepsiCo investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although PepsiCo investors may work on each financial statement separately, they are all related. The changes in PepsiCo's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on PepsiCo's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.