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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 113.62 (-0.58% today). The market cap for Pepsico, Inc. is 162276.63, and is in the sector Consumer Goods, and Beverages – Soft Drinks industry. The target price for Pepsico, Inc. is 117.63. Currently Pepsico, Inc. is trading with a P/E of 26.06, and a forward P/E of 20.54. Average volume for Pepsico, Inc. is 3978.98 and so far today it is 3023800.

Performance in the last year for Pepsico, Inc. has been 12.09%. For EPS growth, Pepsico, Inc. has seen a growth of 18.70%, and is looking to grow in the next year to 7.94%. More long term stats show that EPS growth has been 1.60% over the last five years and could be 6.42% for the next five years. Pepsico, Inc. has seen sales growth quarter over quarter at 5.00%, with EPS growth quarter over quarter at -17.30%. The 20-day simple moving average is 1.21%, with the 200-day simple moving average coming to 7.45%.

Since the IPO date for Pepsico, Inc. on the 06/01/1972, Pepsico, Inc. has seen performance year to date to be 9.34%. With Pepsico, Inc. trading at 113.62, the dividend yield is 2.65%, and the EPS is 4.36.

So could Pepsico, Inc., be undervalued? Well as said before P/E is 26.06. The PEG is 4.06, P/S is 2.58 and the P/B is at 14.42. The P/cash is 10.06, with P/free cash flow at 22.04.

Pepsico, Inc. ability to deal with debt shows that the current ratio is 1.3, and the quick ratio is 1.2. This is with long term debt/equity at 2.67, and total debt/equity at 3.29.

In terms of margins, Pepsico, Inc. has a gross margin of 55.10%, an operating margin of 15.60% and a profit margin of 10.10%.Payout ratio for Pepsico, Inc. is 84.40%. Return on assets come to 8.70% with return on investment coming to 15.80%.

Insider ownership for Pepsico, Inc., is at 0.10% and institutional ownership comes to 71.80%. Outstanding shares are at 1428.24. While shares float is 1426.71. The float short is currently 0.61%, and short ratio is 2.18.

Graphs: Pepsico, Inc. NYSE: PEP | Thursday April 20, 2017


Pepsico, Inc. NYSE: PEP




Pepsico, Inc. NYSE: PEP

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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