PepsiCo, Inc. ($PEP) Confident Investor Rating: Poor

Company name PepsiCo, Inc.
Stock ticker PEP
Live stock price [stckqut]PEP[/stckqut]
P/E compared to competitors Good


Employee productivity Fair
Sales growth Poor
EPS growth Poor
P/E growth Poor
EBIT growth Poor


Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $57.28
Target stock price (averages with growth) $70.97
Target stock price (averages with no growth) $69.74
Target stock price (manual assumptions) $63.42

The following company description is from Google Finance:

PepsiCo, Inc. (PepsiCo) is a global food and beverage company. PepsiCo is organized into four business units: PepsiCo Americas Foods (PAF), which includes Frito-Lay North America (FLNA), Quaker Foods North America (QFNA) and all of its Latin American food and snack businesses (LAF); PepsiCo Americas Beverages (PAB), which includes all of its North American and Latin American beverage businesses; PepsiCo Europe, which includes all beverage, food and snack businesses in Europe, and PepsiCo Asia, Middle East and Africa (AMEA), which includes all beverage, food and snack businesses in AMEA. Its four business units are comprised of six segments: FLNA, QFNA, LAF, PAB, Europe, and AMEA. It manufactures, markets and sells a range of salty, convenient, sweet and grain-based snacks, carbonated and non-carbonated beverages, dairy products and other foods. In November 2012, the Company opened a food and beverage innovation center in Shanghai, China.


Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in this stock.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(s2member_level1)]
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

Stock price at the time of the calculation: $79.43

Growth: 0.06

Current EPS (TTM): $4.24

P/E: 18

Future EPS Calc: $5.67

Future Stock Price Calc: $102.13

Target stock price: $63.41

I hope that this makes you a better investor. [/s2If]

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