Take This Into Account Before Investing in PEP

By Blake Campbell • Friday, December 29 15:31 • Permanent Link

Large-cap Consumer Staples company PepsiCo has moved 0.1% so far today on a volume of 1,435,317, compared to its average of 5,701,348. In contrast, the S&P 500 index moved -0.0%.

PepsiCo trades -9.38% away from its average analyst target price of $187.2 per share. The 20 analysts following the stock have set target prices ranging from $151.0 to $220.0, and on average have given PepsiCo a rating of buy.

Anyone interested in buying PEP should be aware of the facts below:

PepsiCo's current price is 432.5% above its Graham number of $31.86, which implies that at its current valuation it does not offer a margin of safety
PepsiCo has moved -6.2% over the last year, and the S&P 500 logged a change of 24.6%
Based on its trailing earnings per share of 6.0, PepsiCo has a trailing 12 month Price to Earnings (P/E) ratio of 28.3 while the S&P 500 average is 15.97
PEP has a forward P/E ratio of 20.8 based on its forward 12 month price to earnings (EPS) of $8.15 per share
The company has a price to earnings growth (PEG) ratio of 2.6 — a number near or below 1 signifying that PepsiCo is fairly valued compared to its estimated growth potential
Its Price to Book (P/B) ratio is 12.4 compared to its sector average of 4.12
PepsiCo, Inc. manufactures, markets, distributes, and sells various beverages and convenient foods worldwide.
Based in Purchase, the company has 315,000 full time employees and a market cap of $233.23 Billion. PepsiCo currently returns an annual dividend yield of 2.9%.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.