What Is PEP Fair Value?
PepsiCo Inc. (PEP) fair value estimate using multiple valuation models, updated daily.
As of October 31, 2026, PepsiCo Inc. (PEP) has a composite fair value estimate of $116.66 based on four valuation models: DCF (35% weight), Graham Number (25% weight), PEG (25% weight), and DDM (15% weight). The current market price is $137.34, suggesting the stock is overvalued by 15.1%.
Data as of October 31, 2026 (today)
Composite Fair Value
Overvalued4 of 4 models$116.66
vs. current price of $137.34(-15.1%)
How Is PEP Fair Value Calculated?
Four independent models estimate what PEP is worth. Each uses different inputs and assumptions. The composite blends them by weight.
PEP Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
35% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
$149.75
+9.0%Fair Value
Inputs used
DDM (Dividend Discount Model)
15% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
$134.13
-2.3%Fair Value
Inputs used
PEP Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
25% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
$55.56
-59.5%Overvalued
Inputs used
PEG (Price/Earnings to Growth)
25% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$83.95
-38.9%Overvalued
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
Current price $137.34 is 9.0% below this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $9.32B | $8.79B |
| Year 2 | $9.60B | $8.55B |
| Year 3 | $9.89B | $8.31B |
| Year 4 | $10.19B | $8.08B |
| Year 5 | $10.49B | $7.86B |
| Year 6 | $10.81B | $7.64B |
| Year 7 | $11.13B | $7.43B |
| Year 8 | $11.47B | $7.22B |
| Year 9 | $11.82B | $7.02B |
| Year 10 | $12.17B | $6.83B |
| Terminal Value | $361.84B | $203.04B |
What Are PEP's Key Financial Metrics?
Earnings & Growth
Current Price
$137.34
EPS (TTM)
$7.95
Forward P/E
15.9
Profit Margin
11.1%
Cash & Balance Sheet
Free Cash Flow
9B
EBITDA
19.2B
Book Value
$16.34
Total Debt
51.9B
What Do Analysts Say About PEP?
Low
$106.00
Average
$141.59
High
$169.00
Upside
+3.1%
PEP Fair Value FAQ
What is the fair value of PEP?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), PEP's estimated fair value is $116.66. The stock is currently trading at $137.34, which makes it overvalued by our analysis.
How is PEP's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is PEP overvalued or undervalued?
Based on our analysis, PEP is overvalued. The current price of $137.34 is 15.1% above our estimated fair value of $116.66.
What do Wall Street analysts say about PEP?
22 analysts cover PepsiCo Inc. with a consensus rating of "Hold." The average price target is $141.59, ranging from $106.00 to $169.00. This implies 3.1% upside from the current price.