PEP
PepsiCo Inc
Price:  
134.45 
USD
Volume:  
7,761,321
United States | Beverages

PepsiCo Fair Value

-70.8 %
Upside

What is the fair value of PepsiCo?

As of 2025-07-08, the Fair Value of PepsiCo Inc (PEP) is 39.22 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 134.45 USD, the upside of PepsiCo Inc is -70.8%.

Is PepsiCo a good investment?

With the market price of 134.45 USD and our fair value calculation, PepsiCo Inc (PEP) is not a good investment. Investing in PepsiCo stocks now will result in a potential loss of 70.8%.

134.45 USD
Stock Price
39.22 USD
Fair Price
FAIR VALUE CALCULATION

PepsiCo Fair Value

Peter Lynch's formula is:

PepsiCo Fair Value
= Earnings Growth Rate x TTM EPS
PepsiCo Fair Value
= 5.7 x 6.83
PepsiCo Fair Value
= 39.22

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
12-202012-202112-202212-202312-20245Y Avg
Net income7,1207,6188,9109,0749,5788,460
YoY growth-2.7%7%17%1.8%5.6%5.7%

PepsiCo Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
Coca-Cola Co305,6272.512.53-82.4%
Monster Beverage Corp61,2941.512.66-79.9%
Keurig Dr Pepper Inc45,8801.111.63-65.6%
Coca-Cola European Partners PLC44,5663.166.81-31%
Coca-Cola Consolidated Inc9,6066.9172.3448.6%
Molson Coors Beverage Co9,4305.4134.54174.6%
Primo Water Corp (MISSISSAUGA)5,9991.610.91-70.8%
National Beverage Corp4,367212.39-73.4%
Good Hemp Inc2-0-0.01-1120.5%

PepsiCo Fair Value - Key Data

Market Cap (mil)184,342
P/E19.7x
Forward P/E19.6x
EPS6.83
Avg earnings growth rate5.7%
TTM earnings9,370

PepsiCo Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.