PepsiCo, Inc. (PEP) Simple Excess Return Model - Discounting Cash Flows
PepsiCo, Inc.
PEP (NASDAQ)

Estimated Value

USD

Market Price USD

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

Simple Excess Return Model

Used to estimate the value of companies that have reached maturity and earn stable excess returns with little to no high growth chance. Excess Return models are better suited to calculate the intrinsic value of a financial company than an enterprise valuation model (such as the Discounted Free Cash Flow Model).

See our GitHub Documentation

Interactive Assumptions

Results

Estimated Value 333.8 USD
Book value of equity invested 13.4 USD
Next year's estimated book value 13.7 USD
Present value of future excess returns 320.4 USD
Excess Return per share 6.47 USD
Cost of Equity (the discount rate) 6.28%
Average historical Return on Equity 55.49%
Average historical Payout Ratio 73.01%
Payout Ratio used 92.32%
Risk Free Rate of the 10 Year U.S. Treasury Note 4.26%

Historical and Forecasted Data

In USD

amounts of USD except for #

2024 LTM 2025 2026 2027 2028 2029
Beginning Book Value 13.45 13.14 13.14 13.7 14.28 14.89 15.53
Ending Book Value 13.14 13.4 13.7 14.28 14.89 15.53 16.19
EPS 6.98 6.82 7.29 7.6 7.93 8.26 8.62
Return on Equity 51.76% 51.94% 55.49% 55.49% 55.49% 55.49% 55.49%
Dividend per Share 5.33 5.49 6.73 7.02 7.32 7.63 7.95
Retained Earnings 1.65 1.33 0.56 0.584 0.608 0.634 0.661
Equity Cost per Share 0.844 0.825 0.825 0.86 0.897 0.935 0.975
Cost of Equity 6.28% 6.28% 6.28% 6.28% 6.28% 6.28% 6.28%
Excess Return 6.14 5.99 6.47 6.74 7.03 7.33 7.64

amounts of USD except for #

Average LTM 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
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
Total 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
Return on Equity 55.48% 51.94% 51.76% 52.91% 55.54% 56.62% 48.15% 50.38% 114.9% 43.78% 53.08% 31.27%
Dividends Paid to Common Shareholders 5,677 7,532 7,318 6,811 6,238 5,874 5,568 5,302 5,080 4,501 4,227 3,996
Payout Ratio 73.01% 80.54% 76.36% 75.11% 69.97% 77.13% 78.21% 72.47% 40.61% 92.69% 66.82% 73.21%
Shares Outstanding 1,398 1,372 1,373 1,376 1,380 1,382 1,385 1,399 1,415 1,420 1,428 1,448
EPS 5.74 6.82 6.98 6.59 6.46 5.51 5.14 5.23 8.84 3.42 4.43 3.77
Dividend per Share 4.08 5.49 5.33 4.95 4.52 4.25 4.02 3.79 3.59 3.17 2.96 2.76
Book Value 10.75 13.4 13.14 13.45 12.43 11.61 9.71 10.57 10.26 7.67 7.77 8.23
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Discounting Cash Flows

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