PepsiCo, Inc. (PEP) Discounted Future Market Cap - Discounting Cash Flows
PEP
PepsiCo, Inc.
PEP (NASDAQ)

Estimated Value

USD

Market Price USD

* Values are not guaranteed, please do your own
research before making investment decisions.

Discounted Future Market Cap

This model estimates the intrinsic value of a common share by projecting the Future Market Capitalization using the estimated PE Ratio and then discounting it to the Present using an Annual Required Rate of Return.

Interactive Assumptions

Discount Rate

Discount Rate

Discount Rate = Cost of Equity = Risk Free Rate + Beta * Market Premium

The cost of equity is the theoretical rate of return that an equity investment should generate. It is calculated using the CAPM formula.

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↳ Beta

Beta

Beta is a value that measures the price fluctuations (volatility) of a stock with respect to fluctuations in the overall stock market.

↳ Risk Free Rate

Risk-Free Rate

The risk-free rate represents the interest an investor would expect from an absolutely risk-free investment over a specified period of time. By default, it is equal to the current yield of the U.S. 10 Year Treasury Bond.

↳ Market Premium

Market Premium

Market risk premium represents the excess returns over the risk-free rate that investors expect for taking on the incremental risks connected to the equities market.

Pe Ratio

Price to Earnings (PE) Ratio

Estimated Price to Earnings (PE) Ratio at the end of the projection period.

Future Market Cap = PE Ratio * Projected Net Income

Revenue Growth Rate

Revenue Growth Rate

The annual revenue growth rate is applied to projected revenue starting from the second projection year onward.

Net Income Margin

Net Income Margin

Net Income expressed as a percentage of Revenue.

Historical Years

Historical Years

The number of historical years used to calculate averages for historical data.

Projection Years

Projection Years

The number of years for projecting the analysis into the future.

Results

Present Value 121.1 USD
Estimated net income 11.39 Bil. USD
Estimated market capitalization 226.2 Bil. USD
Market capitalization discounted to present 166.1 Bil. USD
Shares Outstanding 1.37 Bil.
Earnings Per Share (EPS) 6.82 USD
Market Price 135.4 USD
Price to Earnings (PE) Ratio 19.82

Historical and forecasted data

Monetary values are in USD

Edit Chart Values 2025 2026 2027 2028 2029

amounts of USD except for #

2024 LTM 2025 2026 2027 2028 2029
Revenue 91,854 91,523 94,806 97,677 100,636 103,684 106,825
Revenue Growth Rate 0.419% -0.36% 3.21% 3.03% 3.03% 3.03% 3.03%
Net Income 9,578 9,370 10,106 10,412 10,728 11,053 11,388

amounts of USD except for #

Average LTM 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Revenue 75,663 91,523 91,854 91,471 86,392 79,474 70,372 67,161 64,661 63,525 62,799 63,056
Cost of Revenue 34,523 41,422 41,744 41,881 40,576 37,075 31,797 30,132 29,381 28,796 28,222 28,731
Gross Profit 41,139 50,101 50,110 49,590 45,816 42,399 38,575 37,029 35,280 34,729 34,577 34,325
Gross Margin 54.41% 54.74% 54.55% 54.21% 53.03% 53.35% 54.82% 55.13% 54.56% 54.67% 55.06% 54.44%
Operating Income 10,838 12,753 12,887 11,986 11,512 11,162 10,080 10,291 10,110 10,276 9,804 8,353
Operating Margin 14.43% 13.93% 14.03% 13.1% 13.33% 14.04% 14.32% 15.32% 15.64% 16.18% 15.61% 13.25%
Net Income 8,012 9,370 9,578 9,074 8,910 7,618 7,120 7,314 12,515 4,857 6,329 5,452
Net Margin 10.66% 10.24% 10.43% 9.92% 10.31% 9.59% 10.12% 10.89% 19.35% 7.65% 10.08% 8.65%

amounts of USD except for #

Average LTM 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Revenue 75,663 91,523 91,854 91,471 86,392 79,474 70,372 67,161 64,661 63,525 62,799 63,056
Revenue Growth Rate 3.03% -0.36% 0.419% 5.88% 8.71% 12.93% 4.78% 3.87% 1.79% 1.16% -0.408% -5.44%
Net Income 8,012 9,370 9,578 9,074 8,910 7,618 7,120 7,314 12,515 4,857 6,329 5,452
Net Margin 10.66% 10.24% 10.43% 9.92% 10.31% 9.59% 10.12% 10.89% 19.35% 7.65% 10.08% 8.65%
Net Income Growth Rate 10.84% -2.17% 5.55% 1.84% 16.96% 6.99% -2.65% -41.56% 157.7% -23.26% 16.09% -16.29%
Stockholders Equity 14,981 18,389 18,041 18,503 17,149 16,043 13,454 14,786 14,518 10,889 11,095 11,923
Equity Growth Rate 1.75% 1.93% -2.5% 7.9% 6.89% 19.24% -9.01% 1.85% 33.33% -1.86% -6.94% -31.63%
Return on Invested Capital (ROIC) 16.43% 16.54% 17.47% 16.25% 15.97% 14.41% 13% 15.46% 29.53% 10.79% 16.93% 14.36%
After-tax Operating Income 8,844 10,250 10,384 9,611 9,655 8,728 7,975 8,126 13,818 5,253 7,312 6,174
Income Tax Rate 18.4% 19.62% 19.42% 19.81% 16.13% 21.81% 20.88% 21.04% -36.67% 48.89% 25.42% 26.08%
Invested Capital 54,285 61,958 59,426 59,137 60,448 60,561 61,361 52,577 46,789 48,692 43,197 42,993
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