PepsiCo, Inc.Opportunity Rank #134(PEP) Intrinsic Value & DCF Analysis (2026)
Current Price
$140.71
Last updated: Jun 23, 2026
Price vs Intrinsic Value
Fundamental Score
Weighted across 6 signals
Narrative Score
-1 vs previous
Trend Score
As of 2026-06-22
The intrinsic value of PepsiCo, Inc. (PEP) is estimated at $179.37 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $140.71, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 2.76% long-term growth rate and an 8.50% discount rate (calculated: 6.55%), reflecting expected future free cash flow and cost of capital.
The intrinsic value of PepsiCo, Inc. (PEP) is estimated at $179.37 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $140.71, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 2.76% long-term growth rate and an 8.50% discount rate (calculated: 6.55%), 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
Trend 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. is a global enterprise that creates, promotes, and supplies a diverse array of drinks and easy-to-prepare food items across the globe. Its operations are structured into seven primary divisions: Frito-Lay North America, Quaker Foods North America, PepsiCo Beverages North America, Latin America, Europe, Africa/Middle East/South Asia, and the Asia Pacific, Australia, New Zealand, and China Region. The company's extensive product catalog encompasses popular snack foods like various dips, cheese snacks, spreads, and a range of chips (including corn, potato, and tortilla varieties). Its pantry staples feature cereals, rice, pasta, baking mixes, beverage syrups, granola bars, grits, oatmeal, rice cakes, and ready-made side dishes. In the beverage sector, PepsiCo offers concentrated syrups, fountain beverages, pre-packaged drinks, ready-to-consume teas, coffees, fruit juices, dairy-based items, and home carbonation systems with associated goods. PepsiCo reaches its broad clientele, which includes wholesale partners, food service providers, various retail outlets like supermarkets, pharmacies, convenience shops, discount stores, large-format retailers, membership-based stores, hard discount retailers, online merchants, and approved independent bottlers. This widespread distribution is achieved via direct store delivery, customer warehouse systems, and comprehensive distributor networks, along with direct sales to consumers through digital commerce channels and retail partners. Established in 1898, the corporation maintains its principal office in Purchase, New York.