PepsiCo, Inc.Opportunity Rank #154(PEP) Intrinsic Value & DCF Analysis (2026)
Current Price
$150.88
Last updated: Mar 24, 2026
Price vs Intrinsic Value
Fundamental Score
Weighted across 6 signals
Narrative Score
-1 vs previous
The intrinsic value of PepsiCo, Inc. (PEP) is estimated at $188.23 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $150.88, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 2.71% long-term growth rate and an 8.00% discount rate (calculated: 6.69%), reflecting expected future free cash flow and cost of capital.
The intrinsic value of PepsiCo, Inc. (PEP) is estimated at $188.23 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $150.88, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 2.71% long-term growth rate and an 8.00% discount rate (calculated: 6.69%), reflecting expected future free cash flow and cost of capital.Valuation Details
Capital Efficiency
The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.
Fundamental Details
Narrative Details
Investment Coach
- Monitor whether valuation discount remains above 10%.
- Track ROIC vs WACC spread for sustained improvement.
- Follow narrative trend for meaningful shifts in the score direction.
Free Cash Flow (in millions)
How Intrinziq Estimates Fair Value
Intrinziq estimates PepsiCo, Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.
PepsiCo, Inc.Consumer Defensive
PepsiCo, Inc. manufactures, markets, distributes, and sells various beverages and convenient foods worldwide. The company operates through seven segments: Frito-Lay North America; Quaker Foods North America; PepsiCo Beverages North America; Latin America; Europe; Africa, Middle East and South Asia; and Asia Pacific, Australia and New Zealand and China Region. It provides dips, cheese-flavored snacks, and spreads, as well as corn, potato, and tortilla chips; cereals, rice, pasta, mixes and syrups, granola bars, grits, oatmeal, rice cakes, simply granola, and side dishes; beverage concentrates, fountain syrups, and finished goods; ready-to-drink tea, coffee, and juices; dairy products; and sparkling water makers and related products. It serves wholesale and other distributors, foodservice customers, grocery stores, drug stores, convenience stores, discount/dollar stores, mass merchandisers, membership stores, hard discounters, e-commerce retailers and authorized independent bottlers, and others through a network of direct-store-delivery, customer warehouse, and distributor networks, as well as directly to consumers through e-commerce platforms and retailers. The company was founded in 1898 and is headquartered in Purchase, New York.