PepsiCo, Inc. (PEP) Annual Margin Report - Discounting Cash Flows
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PepsiCo, Inc.
PEP (NASDAQ)
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  • PepsiCo, Inc. Annual Margin Report

Annual Margin Analysis Report

Margins refer to the ratio between a financial report item and the revenue (Example: Net Income Margin = Net Income / Revenue).

This analysis provides a report of the company's key margins, which could be further used in a valuation model.

Interactive Assumptions

Historical Years

Historical Years

Historical Years

Number of historical years used to render the Chart and Tables.

Margin Analysis (% of Revenue)

Monetary values in USD

Income Statement Margins

Monetary values in USD

amounts except #

Average LTM
Mar 13 		2025
Dec 27 		2024
Dec 31 		2023
Dec 31 		2022
Dec 31 		2021
Dec 31
Revenue 89,507 93,925 93,925 91,854 91,471 86,392 79,474
Revenue Growth Rate 5.03% 0% 2.25% 0.419% 5.88% 8.71% 12.93%
Cost of Revenue 41,235 43,066 43,066 41,744 41,881 40,576 37,075
Gross Profit 48,272 50,859 50,859 50,110 49,590 45,816 42,399
Gross Margin 53.91% 54.15% 54.15% 54.55% 54.21% 53.03% 53.35%
Operating Income 11,757 11,498 11,498 12,887 11,986 11,512 11,162
Operating Margin 13.16% 12.24% 12.24% 14.03% 13.1% 13.33% 14.04%
Net Income 8,610 8,240 8,240 9,578 9,074 8,910 7,618
Net Margin 9.63% 8.77% 8.77% 10.43% 9.92% 10.31% 9.59%

Cash Flow Statement Margins

Monetary values in USD

amounts except #

Average LTM
Mar 13 		2025
Dec 27 		2024
Dec 31 		2023
Dec 31 		2022
Dec 31 		2021
Dec 31
Revenue 89,507 93,925 93,925 91,854 91,471 86,392 79,474
Cash From Operating Activities Margin 13.53% 12.87% 12.87% 13.62% 14.7% 12.51% 14.62%
Cash From Operating Activities 12,092 12,087 12,087 12,507 13,442 10,811 11,616
Free Cash Flow Margin 8.02% 8.17% 8.17% 7.83% 8.66% 6.49% 8.8%
Free Cash Flow 7,175 7,672 7,672 7,189 7,924 5,604 6,991
Depreciation and Amortization Margin 4.12% 4.45% 4.45% 4.15% 3.85% 3.8% 4.04%
Depreciation and Amortization 3,697 4,178 4,178 3,815 3,518 3,280 3,215
Capital Expenditure Margin -5.51% -4.7% -4.7% -5.79% -6.03% -6.03% -5.82%
Capital Expenditure -4,916 -4,415 -4,415 -5,318 -5,518 -5,207 -4,625

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Intrinsic Valuation
An intrinsic valuation model calculates a value per share by using company intrinsic data and will not be influenced by market price or any pricing multiples.

Discounted Cash Flow to Firm - Perpetual Growth

Discounted Cash Flow to Firm - Perpetual Growth

This model estimates the fair value of a share by discounting projected Free Cash Flow to the Firm (FCFF), also known as Unlevered Free Cash Flow.

The terminal value assumes cashflow grows at a constant Growth in Perpetuity rate forever.

Learn more: Prof. Aswath Damodaran's Guide to Discounted Cash Flow Valuation

Earnings Power Value

Earnings Power Value

This model is only available with a paid subscription plan.

Earnings power value is a method of valuing the stocks of a company, assuming that the current earnings are sustainable, and there is no future growth.

The model was developed by Columbia University Professor Bruce Greenwald, a renowned financial economist and value investor who, through this valuation technique, tries to overcome the main challenge in discounted cash flow (DCF) analysis related to making assumptions about future growth, cost of capital, profit margins, and required investments.

Simple Dividend Discount Model

Simple Dividend Discount Model

This model estimates the value of companies that have reached maturity and pay stable dividends as a significant percentage of their free cash flow to equity, with no share buybacks or high growth expectancy.

Learn more: Prof. Aswath Damodaran's Guide to Dividend Discount Models

Simple Excess Return Model

Simple Excess Return Model

This model is used to estimate the value of companies that have reached maturity and earn stable excess returns with little to no chance of high growth.

Note: Excess return models are better suited for estimating the fair value of financial companies compared to enterprise valuation models, such as the Discounted Free Cash Flow Model.

See Valuing Financial Service Firms

Two-Stage Dividend Discount Model

Two-Stage Dividend Discount Model

This model is only available with a paid subscription plan.

This model is designed to value the equity in a firm, with two stages of growth.

  1. An initial period of high growth, represented by the Sum of discounted dividends.
  2. A subsequent period of stable growth, represented by the Discounted terminal value per share.

Learn more: Prof. Aswath Damodaran's Guide to Dividend Discount Models

Two-Stage Excess Return Model

Two-Stage Excess Return Model

This model is only available with a paid subscription plan.

This model is used to estimate the value of companies based on two stages of growth:

  1. An initial period of high growth, represented by the Sum of discounted excess returns.
  2. A subsequent period of stable growth, represented by the Discounted terminal value.

Note: Excess return models are better suited for estimating the fair value of financial companies compared to enterprise valuation models, such as the Discounted Free Cash Flow Model.

See Valuing Financial Service Firms
Multiples Valuation
A multiples valuation model combines both company intrinsic data and market price multiples.

Discounted Cash Flow to Firm - Exit Multiple

Discounted Cash Flow to Firm - Exit Multiple

This model estimates the fair value of a share by discounting projected Free Cash Flow to the Firm (FCFF), also known as Unlevered Free Cash Flow.

The Exit EV/EBITDA Multiple is applied to the company’s projected EBITDA in the final forecast year to estimate the terminal Enterprise Value (EV).

Learn more: Prof. Aswath Damodaran's Guide to Discounted Cash Flow Valuation

Discounted Future Market Cap

Discounted Future Market Cap

This model estimates the intrinsic value of a common share by projecting the future market capitalization using the estimated P/E ratio, then discounting it to the present using an annual required rate of return (referred to as the discount rate).

Peter Lynch Fair Value

Peter Lynch Fair Value

This model is only available with a paid subscription plan.

Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10% and 20% a year.

It is computed by multiplying PEG Ratio, which according to Peter Lynch should always equal to 1 (so it can be ignored), EPS LTM, and Earnings Growth Rate. The resulting model value shows whether the company is currently trading at its fair value or not.
Risk Analysis
A risk analysis model provides information about the level of risk in a company, the cost of capital, liquidity ratios, margins and other risk related ratios.

Altman Z-Score

Altman Z-Score

This model is only available with a paid subscription plan.

The Altman Z-score is a formula for determining whether a company, notably in the manufacturing space, is headed for bankruptcy.

Read more: Altman’s Z-Score Model

Beneish M-Score

Beneish M-Score

This model is only available with a paid subscription plan.

Beneish’s M-Score is a mathematical model that uses eight financial ratios weighted by coefficients to identify whether a company has manipulated its profits.

Read more: Beneish M-Score

Capital Asset Pricing Model (CAPM)

Capital Asset Pricing Model (CAPM)

The Capital Asset Pricing Model describes the relationship between risk and expected return for assets, particularly stocks. Its formula is used to calculate the cost of equity, or the rate of return a company is expected to pay to equity investors.

Margin Analysis

Margin Analysis

Margins refer to the ratio between a financial report item and the revenue (example: Net Income Margin = Net Income / Revenue).

This analysis provides annual and quarterly sections for reporting key financial margins.

Piotroski F-Score

Piotroski F-Score

This model is only available with a paid subscription plan.

The Piotroski score, also known as the Piotroski F-score, is a discrete score that ranges from 0 to 9 and reflects nine criteria that are used to gauge the strength of a firm’s financial position.

Read more: Understanding Piotroski Score

Return on Invested Capital (ROIC)

Return on Invested Capital (ROIC)

The return on capital or invested capital in a business attempts to measure the return earned on capital invested in an investment.

Read more on Aswath Damodaran - Return Measures PDF

Shiller PE (CAPE) Ratio

Shiller PE (CAPE) Ratio

This model is only available with a paid subscription plan.

The CAPE Ratio (also known as the Shiller P/E or PE 10 Ratio) is an acronym for the Cyclically-Adjusted Price-to-Earnings Ratio.

Read more about the CAPE Ratio

Weighted Average Cost of Capital (WACC)

Weighted Average Cost of Capital (WACC)

WACC is a financial metric that helps in calculating a firm’s cost of financing by combining the cost of debt and cost of equity structure together.

Read more: Understanding WACC

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