PepsiCo, Inc.
Short

AVOID: $PEP Has a rich valuation for a low single digit growth!

206
- Avoiding PEP , Some people are saying it's undervalued. Please hold my beer.

- Company has almost saturated, Good days are behind us. Only way this company can grow is by raising prices which means price gouging and adjusting prices for inflation.

- Single digit EPS growth. Forward p/e an should be less than 10 for this stock to be attractive. Otherwise avoid this company as there are better investment opportunity in the market.


- Fundamentally.

Year 2025 2026 2027 2028
EPS. 7.92. 8.40 8.90 9.04
EPS % -2.71%. 6.02%. 5.93% 1.59%

Fair forward p/e for a low single digit EPS growth should be 10

Fair Stock Value:
Year 2025 2026 2027 2028
Stock price 89.2. 84 89 90

Some investor might be willing to pay more if economy tanks and money move into defensive stocks. In that case, investors might pay forward p/e of 15


Fair Stock Value:
Year 2025 2026 2027 2028
Stock price 118 126 133 135

Note
I have marked the yellow lines to indicate price levels at which investing or holding PEP might be beneficial. Otherwise, I will stay on the sidelines and avoid this stock

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