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Is this Large Market Cap Stock target price reasonable for Pepsico, Inc. (NYSE:PEP)?

The company in question is, Pepsico, Inc. (NYSE:PEP) currently with a stock price of 105.67 (-0.33% today). The market cap for Pepsico, Inc. is 156729.36, and is in the sector Consumer Goods, and Beverages РSoft Drinks industry. The target price for Pepsico, Inc. is 115.93. Currently Pepsico, Inc. is trading with a P/E of 29.87, and a forward P/E of 20.56. Average volume for Pepsico, Inc. is 3983.77 and so far today it is 291201.

Performance in the last year for Pepsico, Inc. has been 19.08%. For EPS growth, Pepsico, Inc. has seen a growth of -13.90%, and is looking to grow in the next year to 8.41%. More long term stats show that EPS growth has been -1.30% over the last five years and could be 7.10% for the next five years. Pepsico, Inc. has seen sales growth quarter over quarter at -3.30%, with EPS growth quarter over quarter at 3.70%. The 20-day simple moving average is -1.64%, with the 200-day simple moving average coming to 4.36%.

Since the IPO date for Pepsico, Inc. on the 6/1/1972, Pepsico, Inc. has seen performance year to date to be 8.43%. With Pepsico, Inc. trading at 105.67, the dividend yield is 2.84%, and the EPS is 3.55.

So could Pepsico, Inc., be undervalued? Well as said before P/E is 29.87. The PEG is 4.21, P/S is 2.52 and the P/B is at 12.34. The P/cash is 11.71, with P/free cash flow at 19.85.

Pepsico, Inc. ability to deal with debt shows that the current ratio is 1.4, and the quick ratio is 1.2. This is with long term debt/equity at 2.49, and total debt/equity at 2.87.

In terms of margins, Pepsico, Inc. has a gross margin of 55.40%, an operating margin of 13.30% and a profit margin of 8.30%.Payout ratio for Pepsico, Inc. is 80.00%. Return on assets come to 7.30% with return on investment coming to 14.10%.

Insider ownership for Pepsico, Inc., is at 0.10% and institutional ownership comes to 71.60%. Outstanding shares are at 1478.3. While shares float is 1436.42. The float short is currently 0.72%, and short ratio is 2.6.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

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