PepsiCo Stock (PEP) Rallies as Its Beverage Deal with Taco Bell Is Extended
KFC and Taco Bell are each owned by Yum! Brands.
Fiscal Year: January - December
PepsiCo, Inc. (PEP), listed on the NASDAQ, has a market capitalization of $189.19B. As of Oct 23, 2026, the stock is trading at $138.83 per share@else an unavailable price , offering investors a clear view of its current market value. PepsiCo, Inc. is a prominent player in the industry sector, attracting both institutional and retail investors due to its performance and potential.
With a P/E ratio of 17.46, investors can assess the stock's valuation in comparison to its earnings. A P/E ratio is a crucial indicator for value investors, showing whether the stock is over or undervalued relative to its current earnings. PepsiCo, Inc. also offers a dividend yield of 4.26%, making it an attractive option for income-focused investors who seek regular dividends.
Our Discounted Cash Flow (DCF) analysis reveals that PepsiCo, Inc. (PEP) has a DCF fair value that is only shown to premium members. To see it, please Login or Upgrade for access.
The proprietary SS Score for PepsiCo, Inc. is a unique metric that analyzes the company's financial health and growth potential. The score takes into account critical factors such as revenue growth, net income, free cash flow (FCF) compound annual growth rate (CAGR), the trend of shares outstanding, and the debt-to-FCF ratio. This helps investors to make a more informed decision, as an undervalued stock might still have poor financial fundamentals.
To view the detailed SS Score for PepsiCo, Inc., Login or Upgrade for access.
The Price to Free Cash Flow (P/FCF) ratio for PepsiCo, Inc. is 18.07, offering insights into how much investors are paying for the company's free cash flow. A lower P/FCF ratio typically suggests that the stock is undervalued, while a higher ratio may indicate overvaluation.
In summary, PepsiCo, Inc. (PEP) has shown consistent financial performance, as illustrated by the financial charts above, which track its revenue growth, net income, free cash flow, and shares outstanding over the past several years. These metrics provide investors with key insights into the company's past and projected future performance. Investors should use the SS Score alongside the DCF Fair Value to make better-informed decisions about whether to buy or hold the stock.
*This analysis is for informational purposes only and does not constitute investment advice. Always read the company's 10-K filings and do your own research before making any investment decisions.
Whether PepsiCo, Inc. (PEP) is a good stock to buy depends on various factors, including its financial health, market conditions, and your investment strategy. It is important to assess the SS Score and review the company's fundamentals before making any investment decisions.
The fair value of PepsiCo, Inc. (PEP) is determined through our Discounted Cash Flow (DCF) analysis. This value represents the intrinsic worth of the stock based on its expected future cash flows. To view the specific fair value, consider subscribing to our service for complete access.
The SS Score is a proprietary financial quality metric that assesses factors such as revenue growth, net income, free cash flow growth, and debt levels. It helps investors evaluate the overall financial health of PepsiCo, Inc.. To access the full SS Score, consider upgrading your subscription.
PepsiCo, Inc. is a significant player in the industry sector, with a market capitalization of $189.19B and a competitive P/E ratio of 17.46. Investors should compare these metrics with industry peers to gauge whether PepsiCo, Inc. is outperforming or underperforming within its sector.
KFC and Taco Bell are each owned by Yum! Brands.
PepsiCo and Taco Bell renewed their long-running partnership through 2036. Taco Bell's sister chain KFC is switching to Coca-Cola as its U.S. beverage supplier.
PepsiCo (PEP) announced it has renewed its partnership with Taco Bell (YUM) in the U.S. and several international markets. The agreement reflects the strength of the brands’ long-standing relationship...
PepsiCo and Taco Bell have renewed their landmark U.S. partnership for 11 years, covering participating Taco Bell, Taco Bell Cantina and Live Más Cafe locations. Internationally, PepsiCo will serve as...
From warming breakfasts to shareable snacks, discover simple ways to make cold-weather days feel a little brighter HARRISON, N.Y., Oct. 20, 2026 /PRNewswire/ -- As temperatures fall and evenings grow ...
Former PepsiCo-owned chain switched sides after a secret showdown, replete with taste tests and discussions over strategy.
The problem may be bigger than a few weak brands. Pepsi needs to stop tinkering and consider more fundamental changes.
KFC switch to Coke puts PepsiCo's food service ties in focus, analysts say
With support from PepsiCo and the PepsiCo Foundation, the Feed the Children Food & Essentials Hub program has reached a major milestone in helping expand access to nutritious food and essential resour...
Coca-Cola ($KO) stock was up about 0.90% in Friday’s pre-market trading after KFC, the fast-food chain owned by Yum Brands ($YUM), signed a new beverage partnership with the soda giant…
As more people switch to Coke, some analysts are getting more worried about the state of archrival Pepsi.
Losing a beverage partnership would come as a blow to PepsiCo, which is struggling to improve sales in the country.
Fast-food chain KFC on Thursday signed Coca-Cola as its beverage partner for US stores, bringing to a close a relationship with PepsiCo that dates back about four decades.
KFC said it has struck a deal with Coca-Cola as its beverage provider at thousands of U.S. restaurants, a blow to longtime supplier PepsiCo.
PepsiCo’s ($PEP) 4.7% yield is getting attractive after its prolonged decline. Still, the global snack and beverage giant may still have plenty to get right. CEO Ramon Laguarta says management…
Barclays analyst Lauren Lieberman lowered the firm’s price target on PepsiCo (PEP) to $126 from $133 and keeps an Equal Weight rating on the shares. The ifrm thinks Pepsi is…
Freedom Broker upgraded PepsiCo (PEP) to Buy from Hold with a price target of $147, down from $162. The firm cites the company’s “resilient” brand portfolio, geographic diversification and “defensive…
JPMorgan lowered the firm’s price target on PepsiCo (PEP) to $137 from $138 and keeps a Neutral rating on the shares.
Citi lowered the firm’s price target on PepsiCo (PEP) to $135 from $142 and keeps a Neutral rating on the shares. The firm says weakness in North America and cost…
Morgan Stanley lowered the firm’s price target on PepsiCo (PEP) to $145 from $160 and keeps an Equal Weight rating on the shares. The company’s FY26 EPS guidance cut confirms…
Deutsche Bank analyst Steve Powers lowered the firm’s price target on PepsiCo (PEP) to $132 from $138 and keeps a Hold rating on the shares. The company continues to see…
Piper Sandler lowered the firm’s price target on PepsiCo (PEP) to $140 from $176 and keeps an Overweight rating on the shares. Despite a Q3 EPS beat, driven by strong…
BofA analyst Peter Galbo lowered the firm’s price target on PepsiCo (PEP) to $145 from $152 and keeps a Neutral rating on the shares. The company’s Q3 beat came with…
PepsiCo is raising prices on Doritos, Ruffles and SunChips by single-digit percentages just months after slashing prices to win back shoppers.
'Mad Money' host Jim Cramer digs into PepsiCo stock to see what is driving the price action right now.
Projected from reported cash flow (SEC filings). The starting point is the latest yearly revenue times the median free cash flow margin of the last five years. Years 1 to 5 grow at the revenue growth rate of the last five years (between -5% and 15%), and years 6 to 10 slow down to the 2.5% perpetual growth rate. These are Studying Stocks' own estimates, not analyst forecasts, and are intended for educational purposes only as a baseline for the analysis.
| Year | FCF Estimate | % | Source |
|---|---|---|---|
| 2026 | 8.13B | 5.94% | Projected |
| 2027 | 8.61B | 5.94% | Projected |
| 2028 | 9.12B | 5.94% | Projected |
| 2029 | 9.67B | 5.94% | Projected |
| 2030 | 10.24B | 5.94% | Projected |
| 2031 | 10.78B | 5.26% | Projected |
| 2032 | 11.27B | 4.57% | Projected |
| 2033 | 11.71B | 3.88% | Projected |
| 2034 | 12.08B | 3.19% | Projected |
| 2035 | 12.38B | 2.50% | Projected |
Below are the FCF estimates with the discount factor and the calculated present value with the terminal value that led the results above.
| Year | FCF | Discount Factor | PV of Future FCF |
|---|---|---|---|
| 2024A | 7.19B | 1.00 | 7.19B |
| 2025A | 7.67B | 1.00 | 7.67B |
| 2026E | 8.13B | 1.08 | Login |
| 2027E | 8.61B | 1.16 | Login |
| 2028E | 9.12B | 1.25 | Login |
| 2029E | 9.67B | 1.34 | Login |
| 2030E | 10.24B | 1.44 | Login |
| 2031E | 10.78B | 1.55 | Login |
| 2032E | 11.27B | 1.67 | Login |
| 2033E | 11.71B | 1.80 | Login |
| 2034E | 12.08B | 1.93 | Login |
| 2035E | 12.38B | 2.08 | Login |
| Terminal | 2.08 | Login |
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