Is PepsiCo (PEP) Pricing Look Attractive After Strong Recent Share Price Performance?

Simply Wall St.

Feb 08

If you are wondering whether PepsiCo at around US$170.49 is offering fair value or a stretch price, starting with a clear look at the numbers can help you frame that question. The stock has posted ...

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The stock has posted ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/food-beverage-tobacco/nasdaq-pep/pepsico/news/is-pepsico-pep-pricing-look-attractive-after-strong-recent-s\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is PepsiCo (PEP) Pricing Look Attractive After Strong Recent Share Price Performance?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs PepsiCo (PEP) Pricing Look Attractive After Strong Recent Share Price Performance?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-02-08 03:08 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/food-beverage-tobacco/nasdaq-pep/pepsico/news/is-pepsico-pep-pricing-look-attractive-after-strong-recent-s><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>If you are wondering whether PepsiCo at around US$170.49 is offering fair value or a stretch price, starting with a clear look at the numbers can help you frame that question. The stock has posted ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/food-beverage-tobacco/nasdaq-pep/pepsico/news/is-pepsico-pep-pricing-look-attractive-after-strong-recent-s\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"PEP","symbol_name":"百事可乐","start_time":0,"source_url":"https://simplywall.st/stocks/us/food-beverage-tobacco/nasdaq-pep/pepsico/news/is-pepsico-pep-pricing-look-attractive-after-strong-recent-s","article_id":"2609521609","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/company-cover/32854-main-header/1756253168883"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/food-beverage-tobacco/nasdaq-pep/pepsico/news/is-pepsico-pep-pricing-look-attractive-after-strong-recent-s","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2609521609","pubTimestamp":1770491319,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"If you are wondering whether PepsiCo at around US$170.49 is offering fair value or a stretch price, starting with a clear look at the numbers can help you frame that question.\nThe stock has posted returns of 11.0% over the past 7 days, 24.4% over 30 days, 19.9% year to date, 22.6% over 1 year and 6.8% and 48.6% over 3 and 5 years respectively. This gives you a recent performance backdrop before you think about what you are paying today.\nRecent news coverage around PepsiCo has focused on its...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"PEP":"百事可乐"},"translate_title":"在近期股价表现强劲之后，百事公司（PEP）的定价看起来有吸引力吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"PEP":1.5},"content_text":"If you are wondering whether PepsiCo at around US$170.49 is offering fair value or a stretch price, starting with a clear look at the numbers can help you frame that question. The stock has posted returns of 11.0% over the past 7 days, 24.4% over 30 days, 19.9% year to date, 22.6% over 1 year and 6.8% and 48.6% over 3 and 5 years respectively. This gives you a recent performance backdrop before you think about what you are paying today. Recent news coverage around PepsiCo has focused on its position as a global consumer staples name and how investors often look at such companies when they are assessing brand strength, pricing power and resilience, all of which can influence what they are willing to pay. This context helps explain why the share price can react when the market reassesses those qualities in light of broader consumer trends, input costs or competitive moves. On our checks, PepsiCo currently has a valuation score of 3 out of 6, which means it screens as undervalued on half of the valuation tests we run. Next we will walk through what those approaches look at before coming back to an even more complete way to think about valuation later in the article.  Find out why PepsiCo's 22.6% return over the last year is lagging behind its peers. AdvertisementApproach 1: PepsiCo Discounted Cash Flow (DCF) Analysis A Discounted Cash Flow, or DCF, model projects a company’s future cash flows and then discounts them back to today’s dollars to estimate what the whole business might be worth right now. For PepsiCo, the model used is a 2 Stage Free Cash Flow to Equity approach based on cash flow projections. The latest twelve month free cash flow is about $6.9b. Analysts provide explicit forecasts for several years, and Simply Wall St then extrapolates further out, including a projected free cash flow of about $17.5b in 2035, all stated in US$. After discounting those projected cash flows, the model arrives at an estimated intrinsic value of about $261.95 per share. Compared with the recent share price of around $170.49, the DCF output suggests the stock trades at a 34.9% discount to this estimate, which indicates that PepsiCo screens as undervalued using this method. Result: UNDERVALUED Our Discounted Cash Flow (DCF) analysis suggests PepsiCo is undervalued by 34.9%. Track this in your watchlist or portfolio, or discover 53 more high quality undervalued stocks. PEP Discounted Cash Flow as at Feb 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for PepsiCo. Approach 2: PepsiCo Price vs Earnings For a profitable company like PepsiCo, the P/E ratio is a useful way to think about what you are paying for each dollar of current earnings. It ties the share price directly to the bottom line, which is often how many investors frame value for established, cash generative businesses. What counts as a “normal” or “fair” P/E often reflects how the market views a company’s growth prospects and risk. Higher expected growth or lower perceived risk can support a higher multiple, while slower growth or higher uncertainty usually points to a lower one. PepsiCo currently trades on a P/E of 28.28x. That is well above the Beverage industry average of 17.69x and close to the peer group average of 28.55x. Simply Wall St’s Fair Ratio for PepsiCo is 26.40x, which is its proprietary view of the P/E that might be reasonable given factors such as earnings growth, profit margins, size, industry and company specific risks. This Fair Ratio approach can be more tailored than a simple peer or industry comparison because it adjusts for those company specific drivers rather than assuming all firms deserve similar multiples. Compared with PepsiCo’s actual P/E of 28.28x, the Fair Ratio of 26.40x suggests the shares screen as overvalued on this metric. Result: OVERVALUED NasdaqGS:PEP P/E Ratio as at Feb 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 22 top founder-led companies. Upgrade Your Decision Making: Choose your PepsiCo Narrative Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, which let you put a clear story around your numbers for PepsiCo. A Narrative is simply your view of the business written into numbers, where you connect your assumptions about future revenue, earnings and margins to an estimated fair value instead of looking at ratios in isolation. On Simply Wall St, available to millions of investors through the Community page, Narratives help you link PepsiCo’s story to a financial forecast and then to a fair value, so you can compare that fair value with today’s share price to decide whether it looks attractive or expensive to you. Because Narratives update when new information such as earnings releases or major news is added, your fair value view can adjust automatically as the story changes. One investor might set a higher PepsiCo fair value based on confidence in long term brand strength, while another might choose a lower fair value if they expect more modest revenue growth and tighter margins. Do you think there's more to the story for PepsiCo? Head over to our Community to see what others are saying! NasdaqGS:PEP 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}