PepsiCo, Inc. (PEP) fair value analysis
S&P 500 & Nasdaq · Updated 2026-10-19
PEP price how computed
Forward Fair Value verdict
UndervaluedPEP is trading at more than a 25% discount to estimated fair value.
Based on TickrTrends' weekly Forward Fair Value model.
- Last price
- $125.97
- Sector
- Consumer Defensive
- 12-month range
- $123.73–$170.49
- Market cap
- $172B
- From 52-week high
- -26.1%
- Shares outstanding
- 1.36B
- Rank in Consumer Defensive by discount to fair value
- #10 of 61
Last price is our 2026-10-19 weekly price; the chart runs through 2026-10-16.
PepsiCo, Inc. is a multinational food and beverage company that manufactures and distributes a wide range of products including carbonated soft drinks, juices, water, snacks, and packaged foods under globally recognized brands. The company operates in markets across North America, Europe, Africa, Asia, Australia, and Latin America.
PEP currently ranks #10 of 61 Consumer Defensive stocks by discount to fair value. It has screened as Undervalued for 14 consecutive weekly runs.
Fundamentals (4 quarters) how computed
- Market cap
- $172B
- P/E (trailing)
- 15x
- Revenue (TTM)
- $98.2B
- Net margin
- 11.1%
- EPS (TTM)
- $8.41
- Gross margin
- 54.4%
- Debt / equity
- 2.33
- Revenue growth (3-yr avg)
- -3.1%
- Shares outstanding
- 1.36B
Derived indicators how computed
- Quality grade
- F
- Margin trend
- Stable
- 52-week position
- The bottom quarter of its range
- DCF cross-check
- Overvalued
Technicals how computed
- RSI (14-day)
- 51 · neutral
- 50-day average
- $134.47
- 200-day average
- $146.30
- Moving-average state
- 50-day below 200-day (death cross state); price below both averages
Dividends how computed
- Paid, last 12 months
- $5.81 per share (4 payments)
- Yield on last price
- 4.61%
- Consecutive years of increases
- 26
- Last ex-dividend date
- 2026-09-04
- Last payment date
- 2026-09-30
Earnings how computed
- Last 8 quarters vs consensus
- 7 beat, 1 missed
- Quarter by quarter
- 2026-09 ▲ beat (+2.2%)
2026-06 ▲ beat (+0.5%)
2026-03 ▲ beat (+3.9%)
2025-12 ▲ beat (+0.9%)
2025-09 ▲ beat (+1.3%)
2025-06 ▲ beat (+4.4%)
2025-03 ▼ miss (-0.7%)
2024-12 ▲ beat (+0.5%)
Analyst consensus how computed
This is not TickrTrends' verdict.
- Analyst ratings
- 5 buy · 18 hold · 1 sell (24 analysts)
- Consensus lean
- Hold-leaning
- Consensus price target
- $142
- Target vs last price
- +12.7%
What our data shows for PEP
- Our model validated 17 trailing price-to-earnings windows for PEP, built from quarterly earnings records.
- Shares are trading in the lower third of their 12-month price range of $123.73–$170.49.
- The 14-day relative strength index sits at a neutral 51.
The exact numbers are one step away
- The precise Forward Fair Value dollar figure for PEP
- Exact discount / premium to today's price
- The normalized historical P/E behind the estimate, and how many quarters support it
- Forward EPS input and fiscal-year basis
- Screeners and rankings across the full S&P 500 and Nasdaq universes
Forward Fair Value applies a conservatively normalized historical price-to-earnings multiple to the consensus earnings estimate for the next full fiscal year; how TickrTrends computes it.
Recent PEP news
TickrTrends' derived news-sentiment signal for PEP is currently leaning positive, computed from recent coverage.
- PepsiCo pushes Good Warrior into protein bars (foodbusinessnews.net, 2026-10-21)
TickrTrends take: PepsiCo's expansion into the protein bar category through Good Warrior represents a strategic move to capture growth in the higher-margin functional foods segment within the Consumer Defensive sector. Given TickrTrends' current undervalued assessment of PEP, investors tracking valuation metrics should monitor whether this product line contributes meaningfully to revenue growth and margin expansion in upcoming quarters. The success of this initiative could become a key factor in validating or challenging the current undervaluation designation as the market reassesses the company's growth prospects beyond its traditional beverage and snack portfolio. - HHS Food Policy Talks Spotlight Risks for PepsiCo (PEP) Dividend Outlook (gurufocus.com, 2026-10-17)
TickrTrends take: PepsiCo operates in the Consumer Defensive sector, which typically commands stable valuations due to predictable cash flows and dividend sustainability. Recent discussions around HHS food policy introduce regulatory uncertainty that could impact PEP's cost structure and consumer demand patterns, factors that directly influence the dividend reliability that defensive sector investors depend on. Given TickrTrends' current undervalued assessment, investors should monitor how policy developments might affect future earnings stability and the company's ability to maintain its dividend profile. - PepsiCo (PEP) Raises €1 Billion in Dual-Tranche Senior Notes Offering (gurufocus.com, 2026-10-17)
TickrTrends take: PepsiCo's recent capital raise through senior notes offering demonstrates the company's continued access to debt markets, which is relevant given TickrTrends' current undervalued assessment. For investors focused on valuation metrics, this financing activity warrants attention to how the company deploys the capital and whether it enhances shareholder returns or operational efficiency in the Consumer Defensive sector. Monitoring PepsiCo's debt levels and capital allocation decisions will be important for tracking whether the undervalued designation holds as the company's financial structure evolves.
More PEP news
- PepsiCo Just Cut its Earnings Forecast. Is the Stock Still Worth Buying? (insidermonkey.com, 2026-10-11)
- Pepsi: Near 5% Yield And 15x P/E Compelling, But North America Concerns Me (NASDAQ:PEP) (seekingalpha.com, 2026-10-10)
- PepsiCo Q3: The Stock Is Cheap, The Business Is Improving (NASDAQ:PEP) (seekingalpha.com, 2026-10-09)
What people are saying
Follow the PEP conversation: Stocktwits · Reddit · X
TickrTrends weekly updates
- 2026-10-19 — No material change this week: the verdict, bands and grades all held steady.
- 2026-10-12 — No material change this week: the verdict, bands and grades all held steady.
- 2026-10-11 — PEP's revenue growth classification shifted from modest to declining this week according to TickrTrends' derived indicators. Despite this deterioration in the growth metric, the stock maintains an undervalued valuation verdict within the Consumer Defensive sector.
- 2026-10-10 — PEP moved out of oversold territory this week as its Relative Strength Index shifted from the oversold zone to neutral, suggesting a stabilization in near-term momentum. The stock maintains an undervalued valuation verdict within the Consumer Defensive sector, indicating that current pricing may not fully reflect its fundamental value according to TickrTrends' derived indicators.
- 2026-10-06 — No material change this week: the verdict, bands and grades all held steady.
- 2026-09-28 — No material change this week: the verdict, bands and grades all held steady.
- 2026-09-21 — PEP's RSI indicator moved from the neutral zone into oversold territory this week, suggesting the stock has experienced significant downward momentum. The current valuation assessment remains Undervalued, indicating that the security may be trading below fundamental value according to TickrTrends' derived metrics.
- 2026-09-17 — No material change this week: the verdict, bands and grades all held steady.
Frequently asked questions
Is PEP stock undervalued?
Based on TickrTrends' Forward Fair Value model (updated 2026-10-19), PEP is trading at more than a 25% discount to estimated fair value and screens as undervalued. The exact fair value and discount are available to subscribers.
What is PEP's TickrTrends verdict?
PEP's current verdict is Undervalued, refreshed with every weekly Forward Fair Value run.
How does PEP compare to other Consumer Defensive stocks?
PEP ranks #10 of 61 Consumer Defensive stocks in TickrTrends' coverage by discount to fair value.
Is PEP overbought or oversold?
PEP's 14-day RSI is in neutral territory - neither overbought nor oversold.
Does PEP pay a dividend?
Yes. PEP paid $5.81 per share over the last twelve months (4 payments), a 4.61% yield on TickrTrends' last price, and has raised the annual total for 26 consecutive years. The last ex-dividend date was 2026-09-04.
Does PEP usually beat earnings estimates?
Over its last 8 reported quarters PEP beat the consensus estimate 7 times and missed 1 times, by TickrTrends' comparison of reported and estimated EPS.
What do analysts say about PEP?
Of 24 analysts covering PEP, 5 rate it a buy, 18 a hold and 1 a sell - hold-leaning, with a consensus price target of $142 (+12.7% versus TickrTrends' last price). This is the analyst consensus, not TickrTrends' Forward Fair Value verdict.
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