Published on 15 Mar 2023 on Simply Wall St. via Yahoo Finance
Calculating The Fair Value Of PepsiCo, Inc. (NASDAQ:PEP)
Key Insights
PepsiCo's estimated fair value is US$175 based on 2 Stage Free Cash Flow to EquityCurrent share price of US$174 suggests PepsiCo is potentially trading close to its fair value The US$186 analyst price target for PEP is 6.2% more than our estimate of fair value
Today we will run through one way of estimating the intrinsic value of PepsiCo, Inc. (NASDAQ:PEP) by taking the forecast future cash flows of the company and discounting them back to today's value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine.