What is PEP's intrinsic value?

TickerWorth's valuation lenses put PepsiCo, Inc. (PEP) between $49.83 and $265.15 per share, versus a market price of $132.54. They disagree too widely for us to state a single fair value, so we publish the range.

Is PEP overvalued or undervalued?

At $132.54 the price sits inside a range too wide to call either way. We don't call PEP overvalued or undervalued from a range this wide. This is an educational estimate, not advice.

What discount rate is used for PEP?

A WACC of 6.9% and a terminal growth rate of 2.5%.

Is PepsiCo stock undervalued?

TickerWorth's fair-value range for PepsiCo, Inc. (PEP) is $49.83 – $265.15 against a market price of $132.54. Too wide to call. We publish a range here, not one number, so we do not call it over- or undervalued. This is a model estimate, not investment advice.

PepsiCo (PEP) DCF valuation and fair value

Our fair-value range for PepsiCo, Inc. (PEP) is $49.83 – $265.15, built on a 6.9% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.

What growth is priced into PepsiCo stock?

Today's price implies revenue growth of −1.7% a year for 5 years; our model assumes 3.6% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $132.54. A model estimate, not investment advice.

PepsiCo (PEP) insider trading

The most recent insider filing (SEC Form 4) for PepsiCo, Inc. (PEP): POHLAD ROBERT C, Director, open-market buy on 2026-10-14. The latest filings are listed on this page. A disclosure, not a signal to trade.

PEP · Intrinsic value

Is PepsiCo, Inc. (PEP) overvalued or undervalued?

Name: PepsiCo, Inc. (PEP) DCF intrinsic value
Creator: TickerWorth

As of Oct 19, 2026, TickerWorth's valuation lenses put PepsiCo, Inc. (PEP) at $49.83 – $265.15, too broad a range to say where the delayed market price of $132.54 sits in it, so we do not call it over- or undervalued. It is a model estimate, and every input behind it is sourced below.

Model by Miraaj Patel · generated from a hand-researched model · Updated Oct 19, 2026 · How these pages are made

Open full PEP analysis

What is PEP worth?

Fair-value range: $49.83 – $265.15
Market price: $132.54
Gap to fair value: —
Verdict: Too wide to call

Price as of 19 Oct 2026, 17:03 UTC · Prices are delayed.Our valuation lenses disagree too widely on this company for us to publish a single number, so we publish the range instead. We do not call it over- or undervalued from a spread this wide.

Fair-value range against the delayed market price: Too wide to call.

Reverse DCF: Today's price implies revenue growth of −1.7% a year for 5 years; our model assumes 3.6% a year on average over the same horizon.

What is PEP's TickerWorth Score?

C54/100

Middle of the pack — real strengths and real weaknesses

Compared with Consumer Defensive companies in US

Its strongest point: a profitable, high-quality business. Its weakest: recent price trend has been weak.

Value · 56 of 100
Cheaper than 56% of Consumer Defensive companies in US
Price vs worth · 69 of 100
Quality · 71 of 100
More profitable than 71% of Consumer Defensive companies in US
Financial health · 46 of 100
Financially stronger than 46% of Consumer Defensive companies in US
Growth · 47 of 100
Growing faster than 47% of Consumer Defensive companies in US
Momentum · 11 of 100
Outperformed 11% of Consumer Defensive companies in US over the past year

Confidence: Medium confidence · Scored 19 Oct 2026, 16:53 UTC

Get the Undervalued Company of the Week.

Where the numbers come from

Hand-researched model

What the modeller flagged

YEAR-1 FCF IS ~37% ABOVE PEPSICO'S LAST REPORTED FCF (~$11.3B modeled vs $8,200M reported for FY2025; ~16% above the $9,712M TTM) — past the 20% threshold, so stated explicitly. The gap is definitional and decomposes: the model's FCF is UNLEVERED and before one-offs. Bridge from FY2025 reported: + ~$1.36B after-tax cash interest ($1,748M x 0.78), + $772M TCJA transition-tax instalment (the last ~$965M was paid in H1 2026, so this falls away from 2027), + $1.2B working-capital outflow (modeled at zero), + ~$0.2B of the restructuring cash above the model's 0.6% allowance and deal costs, + revenue and margin growth into 2026, - a higher 22% tax rate. Management's own path points the same way: FCF conversion of at least 80% of core net income in 2026 and at least 90% in 2027, i.e. ~$10.5B+ levered in 2027, ~$11.5B+ unlevered.
TERMINAL VALUE IS ~81% OF ENTERPRISE VALUE, above the 75% line. With a 6.92% WACC and 2.5% terminal growth the spread is only 4.4 points, so the answer is very sensitive to both: this is a bet on the steady state, not on the five forecast years. Read the per-share figure as the centre of a wide range.
THE MARGIN BASIS IS ABOVE ANY RECENT GAAP YEAR. GAAP operating margins were 14.0% (FY2021), 13.1% (FY2023), 14.0% (FY2024) and 12.2% (FY2025); the model runs 15.5-16.2%. The difference is PepsiCo's near-annual 'items affecting comparability' — chiefly non-cash brand and investment impairments (Rockstar $1.78B in 2025, the juice/TBG write-downs in 2024) and deal charges — which the model excludes on the logic that impairments are non-cash and M&A is not forecast. The honest counterpoint: recurring impairments are the accounting trace of acquisition capital that did not earn its keep. If you believe PepsiCo will keep buying brands and writing ~1 point of revenue a year off, the margin path should be ~1 point lower, worth roughly -$13/share.
BETA NORMALIZED UP from the published 0.361 to 0.48 (10-year regression). Conservative — but note that even the normalized cost of equity, 7.64%, is low, and the beta is the biggest single lever in the file: the Blume-adjusted 0.57 would take ~$15/share off; the published 0.361 would add ~$23.
NOT YET UPDATED FOR Q3 2026. Built on the Q2 2026 release (2026-07-09) and the Q2 10-Q. Q3 2026 results (quarter ended 2026-09-05) are due 2026-10-08 — five days after this file — and will test the Year-1 margin, which already assumes the low end of the core EPS guide.
SBC of $288M in FY2025 (0.3% of revenue) is expensed inside core operating profit; not added back. Dilution is captured by the 1,369M weighted-diluted count.
Non-operating assets left out (conservative): the $1,453M Celsius preferred stake and $2,180M of equity-method affiliates, together ~$2.7/share.

Why PEP gets a range, not one number

At a recent price of $132.54, PepsiCo, Inc. (PEP) sits inside a range too wide to call either way: our valuation lenses put the business somewhere between $49.83 and $265.15 per share. They disagree too widely for us to state a single fair value. We publish the range rather than a midpoint because a number that precise would claim more than the methods can support. This is an educational model, not a price target or a recommendation.

Read the full reasoning

The valuation discounts PepsiCo, Inc.'s projected free cash flows at a weighted-average cost of capital (WACC) of 6.9%, with a long-run terminal growth rate of 2.5%. About 81% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.

Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly -1.7% annual revenue growth for PEP. Our base case instead compounds to about 3.6% a year over the same forecast, so the market is pricing in slower growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.

Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, PEP's modeled DCF value ranges from about $100.23 to $412.31 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.

How to read this page: the DCF fair value is what PepsiCo, Inc. would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of PEP's intrinsic value. Figures update as new filings and prices come in.

Every input behind PEP's DCF

Input	Value	Source
Base-year revenuePepsiCo Q4/FY2025 earnings release, 8-K Ex-99.1 (accession 0000077476-26-000009, filed 2026-02-03); FY2025 10-K (accession 0000077476-26-000007): Net revenue for the 52 weeks ended 2025-12-27, +2.3% reported on FY2024's $91,854M. REPORTED vs ORGANIC: organic growth was 1.7%; currency was ~0 for the year and acquisitions net of divestitures (Siete, Sabra, poppi in, juice out earlier) about -1 point at the total level per the release's bridge. The model's base is REPORTED revenue — that is the cash the business actually produced — and the forecast grows it at reported rates (Year 1 includes management's guided FX and M&A contributions; Years 2-5 are organic only, no currency assumption). FISCAL CALENDAR: PepsiCo's year ends the last Saturday of December; FY2025 and FY2026 are both 52-week years, so there is no extra-week distortion in Year 1. CROSS-CHECK: H1 2026 (24 weeks to 2026-06-13) net revenue was $43,624M, +7.3% reported (organic +2.5%, FX +2.7pts, M&A +2.1pts) — Q2 10-Q, accession 0000077476-26-000035.	$93,925,000,000	PepsiCo Q4/FY2025 earnings release, 8-K Ex-99.1 (accession 0000077476-26-000009, filed 2026-02-03); FY2025 10-K (accession 0000077476-26-000007): Net revenue for the 52 weeks ended 2025-12-27, +2.3% reported on FY2024's $91,854M. REPORTED vs ORGANIC: organic growth was 1.7%; currency was ~0 for the year and acquisitions net of divestitures (Siete, Sabra, poppi in, juice out earlier) about -1 point at the total level per the release's bridge. The model's base is REPORTED revenue — that is the cash the business actually produced — and the forecast grows it at reported rates (Year 1 includes management's guided FX and M&A contributions; Years 2-5 are organic only, no currency assumption). FISCAL CALENDAR: PepsiCo's year ends the last Saturday of December; FY2025 and FY2026 are both 52-week years, so there is no extra-week distortion in Year 1. CROSS-CHECK: H1 2026 (24 weeks to 2026-06-13) net revenue was $43,624M, +7.3% reported (organic +2.5%, FX +2.7pts, M&A +2.1pts) — Q2 10-Q, accession 0000077476-26-000035.
Base EBIT marginPepsiCo Q4/FY2025 earnings release, 8-K Ex-99.1 (accession 0000077476-26-000009), GAAP-to-core operating profit reconciliation (page A-10/A-11): DERIVED from reported lines, one deliberate choice: CORE operating profit LESS restructuring. GAAP operating profit was $11,498M (12.24%); PepsiCo's core operating profit was $14,912M (15.88%). The $3,414M between them: $1,946M impairment and other charges (mostly the non-cash Rockstar brand write-down), $964M restructuring (2019 Productivity Plan), $453M acquisition/divestiture charges (poppi), $82M indirect tax, -$30M pension, -$1M mark-to-market. I put RESTRUCTURING BACK IN as a real, recurring cash cost — PepsiCo has run a productivity plan continuously since 2012 and the current one runs to 2030 — and leave the rest out: impairments are non-cash write-downs of past acquisitions, and deal charges belong with M&A spending, which this model does not forecast (Years 2-5 are organic only). $14,912M - $964M = $13,948M / $93,925M = 14.85%. This is ABOVE GAAP because FY2025 GAAP carried an unusually large brand impairment; it is BELOW every recent year's core margin. CROSS-CHECK H1 2026: GAAP operating margin 16.6%, core 16.3% (16.5% in H1 2025, so -15bp YoY), restructuring $182M (0.42% of revenue) — Q2 release, accession 0000077476-26-000037.	14.8%	PepsiCo Q4/FY2025 earnings release, 8-K Ex-99.1 (accession 0000077476-26-000009), GAAP-to-core operating profit reconciliation (page A-10/A-11): DERIVED from reported lines, one deliberate choice: CORE operating profit LESS restructuring. GAAP operating profit was $11,498M (12.24%); PepsiCo's core operating profit was $14,912M (15.88%). The $3,414M between them: $1,946M impairment and other charges (mostly the non-cash Rockstar brand write-down), $964M restructuring (2019 Productivity Plan), $453M acquisition/divestiture charges (poppi), $82M indirect tax, -$30M pension, -$1M mark-to-market. I put RESTRUCTURING BACK IN as a real, recurring cash cost — PepsiCo has run a productivity plan continuously since 2012 and the current one runs to 2030 — and leave the rest out: impairments are non-cash write-downs of past acquisitions, and deal charges belong with M&A spending, which this model does not forecast (Years 2-5 are organic only). $14,912M - $964M = $13,948M / $93,925M = 14.85%. This is ABOVE GAAP because FY2025 GAAP carried an unusually large brand impairment; it is BELOW every recent year's core margin. CROSS-CHECK H1 2026: GAAP operating margin 16.6%, core 16.3% (16.5% in H1 2025, so -15bp YoY), restructuring $182M (0.42% of revenue) — Q2 release, accession 0000077476-26-000037.
Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast	5% → 4% → 4% → 3% → 3%	ESTIMATEAssumption — TickerWorth's 5-year explicit forecast
Risk-free rateUS 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation. Shared by every model in this tracker.	5.2%	US 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation. Shared by every model in this tracker.
BetaESTIMATEAssumption — Published 5Y-monthly beta (yfinance, read 2026-10-03) + own 10-year monthly regression: NORMALIZED UP from the published 0.361 to 0.48 — CONSERVATIVE: it raises the discount rate and LOWERS the value. Reason, the same one applied to Coca-Cola in this tracker: at 0.361 PepsiCo's cost of equity would be 7.05%, barely 115bp above the ~5.9% it would pay on a new 10-year bond, and equity sits behind bonds. The published number is low and unstable rather than informative — my own regressions of yfinance monthly total-return closes against the S&P 500 give 0.33 over 5 years (60 months), 0.23 over 3 years, and 0.48 over 10 years (121 months, Oct-2016 to Oct-2026); the shorter windows are dominated by 2022, when staples rose as the market fell, and by PEP's own 2026 slide, which was stock-specific (on 2026-09-18 it fell 3% on no news while the staples ETF fell 0.55%). 0.48 is the 10-year figure, which spans more than one regime; the Blume-adjusted published beta would be 0.57 (more conservative still). Cost of equity = 5.24% + 0.48 x 5.0% = 7.64%. THIS IS A BIG LEVER: each 0.1 of beta moves the value by roughly $16/share, because PepsiCo's WACC is low and its terminal value is large.	0.48	ESTIMATEAssumption — Published 5Y-monthly beta (yfinance, read 2026-10-03) + own 10-year monthly regression: NORMALIZED UP from the published 0.361 to 0.48 — CONSERVATIVE: it raises the discount rate and LOWERS the value. Reason, the same one applied to Coca-Cola in this tracker: at 0.361 PepsiCo's cost of equity would be 7.05%, barely 115bp above the ~5.9% it would pay on a new 10-year bond, and equity sits behind bonds. The published number is low and unstable rather than informative — my own regressions of yfinance monthly total-return closes against the S&P 500 give 0.33 over 5 years (60 months), 0.23 over 3 years, and 0.48 over 10 years (121 months, Oct-2016 to Oct-2026); the shorter windows are dominated by 2022, when staples rose as the market fell, and by PEP's own 2026 slide, which was stock-specific (on 2026-09-18 it fell 3% on no news while the staples ETF fell 0.55%). 0.48 is the 10-year figure, which spans more than one regime; the Blume-adjusted published beta would be 0.57 (more conservative still). Cost of equity = 5.24% + 0.48 x 5.0% = 7.64%. THIS IS A BIG LEVER: each 0.1 of beta moves the value by roughly $16/share, because PepsiCo's WACC is low and its terminal value is large.
Terminal growthESTIMATEAssumption — house default: House default 2.5% (roughly long-run nominal GDP), kept for comparability. Reasonable for PepsiCo: a global staples business with ~40% of revenue outside North America, priced in local currency, has grown roughly with nominal GDP for decades. But it matters a great deal here because the spread to WACC is narrow (6.92% - 2.5% = 4.42pts): a 2.0% terminal rate takes roughly $17/share off. Must remain < WACC.	2.5%	ESTIMATEAssumption — house default: House default 2.5% (roughly long-run nominal GDP), kept for comparability. Reasonable for PepsiCo: a global staples business with ~40% of revenue outside North America, priced in local currency, has grown roughly with nominal GDP for decades. But it matters a great deal here because the spread to WACC is narrow (6.92% - 2.5% = 4.42pts): a 2.0% terminal rate takes roughly $17/share off. Must remain < WACC.
Diluted sharesPepsiCo Q2 2026 earnings release, 8-K Ex-99.1 (accession 0000077476-26-000037), income statement: Weighted-average diluted shares for the 12 weeks ended 2026-06-13: 1,369M (24 weeks: 1,370M; FY2025: 1,373M). Shares outstanding were 1,366M. The count drifts down slowly: management guides $1.0B of buybacks in 2026 against $7.9B of dividends, which is barely more than offsets SBC dilution.	1,369M	PepsiCo Q2 2026 earnings release, 8-K Ex-99.1 (accession 0000077476-26-000037), income statement: Weighted-average diluted shares for the 12 weeks ended 2026-06-13: 1,369M (24 weeks: 1,370M; FY2025: 1,373M). Shares outstanding were 1,366M. The count drifts down slowly: management guides $1.0B of buybacks in 2026 against $7.9B of dividends, which is barely more than offsets SBC dilution.
Market priceDelayed quote · as of 2026-10-19 17:03 UTC	$132.54	Delayed quote · as of 2026-10-19 17:03 UTC

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What does PepsiCo, Inc. do?

What does it do?

PepsiCo, Inc. engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide. It operates in the Beverages - Non-Alcoholic industry (Consumer Defensive sector), headquartered in United States. The company employs roughly 306,000 people.

How does it make money?

The business turns $98.2B in annual revenue into profit. Out of every $100 of sales, about $17 is left as operating profit (operating margin of 16.9%), after a 54% gross margin on the products/services it sells. After all costs, taxes and interest, 11.1% of revenue becomes bottom-line net profit.

Is it financially healthy?

Financially it looks stretched: carries heavy debt (2.3× equity), may struggle to cover its short-term bills (0.9× current ratio), and is currently profitable.

Who at PEP filed insider trades?

Recent insider filings for PepsiCo, Inc.
Date	Insider	Relationship	What happened	Value	Filing
14 Oct 2026	POHLAD ROBERT C	Director	Open-market buy	$10,840,557.96	Form 4 for POHLAD ROBERT C (opens sec.gov in a new tab)
14 Oct 2026	POHLAD ROBERT C	Director	Open-market buy	$5,782,221.00	Form 4 for POHLAD ROBERT C (opens sec.gov in a new tab)
14 Oct 2026	POHLAD ROBERT C	Director	Open-market buy	$5,782,221.00	Form 4 for POHLAD ROBERT C (opens sec.gov in a new tab)
14 Oct 2026	POHLAD ROBERT C	Director	Open-market buy	$1,281,388.92	Form 4 for POHLAD ROBERT C (opens sec.gov in a new tab)
1 Oct 2026	Weisser Alberto	Director	Grant / award	$199,999.99	Form 4 for Weisser Alberto (opens sec.gov in a new tab)
1 Oct 2026	VASELLA DANIEL	Director	Grant / award	$199,999.99	Form 4 for VASELLA DANIEL (opens sec.gov in a new tab)

A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4). Older filings and the 90-day buying-and-selling read are part of Pro. See plans

Common questions

What is PEP's intrinsic value?
TickerWorth's valuation lenses put PepsiCo, Inc. (PEP) between $49.83 and $265.15 per share, versus a market price of $132.54. They disagree too widely for us to state a single fair value, so we publish the range.
Is PEP overvalued or undervalued?
At $132.54 the price sits inside a range too wide to call either way. We don't call PEP overvalued or undervalued from a range this wide. This is an educational estimate, not advice.
What discount rate is used for PEP?
A WACC of 6.9% and a terminal growth rate of 2.5%.
Is PepsiCo stock undervalued?
TickerWorth's fair-value range for PepsiCo, Inc. (PEP) is $49.83 – $265.15 against a market price of $132.54. Too wide to call. We publish a range here, not one number, so we do not call it over- or undervalued. This is a model estimate, not investment advice.
PepsiCo (PEP) DCF valuation and fair value
Our fair-value range for PepsiCo, Inc. (PEP) is $49.83 – $265.15, built on a 6.9% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into PepsiCo stock?
Today's price implies revenue growth of −1.7% a year for 5 years; our model assumes 3.6% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $132.54. A model estimate, not investment advice.
PepsiCo (PEP) insider trading
The most recent insider filing (SEC Form 4) for PepsiCo, Inc. (PEP): POHLAD ROBERT C, Director, open-market buy on 2026-10-14. The latest filings are listed on this page. A disclosure, not a signal to trade.