Oversold

PEP

Same as last week
Valuation65/ 100
Cash flow & growth68/ 100
Upside potential55/ 100
Risk potential17/ 100

PEP's valuation is historically cheap, fundamentals are above averages and the outlook is broadly stable.

Valuation

Historical cheapness: current PE is 17.9× versus the full-history median of 23.3× shown in the valuation table, producing 67.5/100. Positive weekly observations receive equal weight; lower past EPS alone does not disqualify them.

Outlook-adjusted valuation: 64.6/100. The model applies a 4.9% earnings-growth assumption and a 10% annual return hurdle, with positive credit limited by evidence coverage and confidence.

Forward price scenarios use recent PE history separately. Recent history has a separately weighted median of 23.8× (18-month half-life). The favorable scenario uses 19.5× PE and $8.6 projected EPS, informed by growth, margins and earnings-quality checks. This is a model scenario, not an analyst target. A return to the full-history median is not assumed.

Cash flow & growth

Business trends are strong. Over the past year: revenue +5.6%, earnings +39%, operating margin +1.5 percentage points. Free cash flow is 9.6% of revenue. The business score is 68.4/100. Growth, margins and cash generation drive the score. Missing or older data receives less weight.

Favorable scenario

Stronger earnings and valuation could support a higher share price.

Our favorable case uses $8.59 of EPS and a 19.5× PE, suggesting a share price of about $167.68. Valuation history and outlook inform the PE.

The displayed favorable scenario is 23% upside, or about $167.67.

This is a scenario based on our model, not a forecast or probability.

Downside scenario

Weaker than expected earnings could put pressure on the share price.

Our downside case uses $6.53 of EPS and a 17.3× PE, suggesting a share price of about $112.73 — 17% below today’s price. Valuation history and outlook inform the PE.

This is a scenario based on our model, not a forecast or probability.

PEP vs Historical averages

MetricCurrentAverageRelative
PE18x24x25% lower
PE percentile3.25094% lower
EPS$7.63$6.1324% higher
FCF$9.3B$6.9B35% higher
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PEP’s earnings and cash flow are above their historical averages, while its earnings multiple is lower.

PEP Forward outlook

MetricOutlook
Forward valuationStable
Forward earningsStable
Forward revenueStable
Forward profitabilityExpanding
Analyst coverageModerate
Estimate dispersionTight

PEP’s outlook is generally stable.

PEP PE Valuation

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This table applies PEP's historical price-to-earnings (PE) landmarks to current earnings. The implied prices are valuation scenarios, not price forecasts or targets.

PEP Earnings Per Share

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This chart tracks PEP's trailing twelve-month diluted earnings per share, calculated from four consecutive reported quarters to reduce seasonal noise.

PEP Quarterly Revenue

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This chart tracks PEP's quarterly revenue over time and shows how sales are changing from year to year.

PEP Free Cash Flow

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This chart tracks PEP's free cash flow over time, showing whether the business is consistently generating cash after operating costs and capital spending.

PEP Total Shares

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This chart tracks changes in PEP's diluted share count. A rising count can dilute existing owners, while a falling count often reflects share repurchases.

PEP Net Leverage

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Quarterly Net Leverage uses the last 12 months of EBITDA. A falling multiple generally indicates less debt relative to earnings capacity. Negative values mean net cash; missing data or nonpositive LTM EBITDA are N/A. The table shows each period’s Net Leverage and status.

PEP PE vs Consumer Defensive Sector

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This chart compares PEP's price-to-earnings (PE) ratio with the Consumer Defensive sector average. A discount or premium can reflect differences in expected growth, profitability, or risk.

PEP Weekly Price

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This chart uses PEP's weekly closing prices to show the longer-term trend. The lower panes show weekly RSI and Stochastic momentum.

PEP Weekly Moving Averages

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This chart compares PEP's 8, 20, 50, 100, and 200-week moving averages from 2020 onward. Shorter averages react faster to price changes, while longer averages show the broader trend.

PEP Yearly ROI

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Each line starts at 0% using the year’s first dependable weekly close and tracks the return through December, or through the latest available week for the current year.