Stock fact sheet · data as of
PepsiCo, Inc. (PEP): fair value, margin of safety and Wheel Score
Consumer Defensive · Beverages - Non-Alcoholic · United States · High Yield Income
Is PEP undervalued?
PepsiCo, Inc. (PEP) closed at 129.27 on 16 Oct 2026, 24% above the GLS average fair value of 104.37. Only 4 of the 9 models that produced a number value the shares above the current price. The margin of safety is negative, so the stock fails the "below fair value" rule of the Sunday Scan; a premium of this size is common for companies whose growth the models are conservative about.
There is a wide gap between GLS Growth (23.07) and 10 Cap (211.88). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files PEP under High Yield Income: a dividend yield above 4%.
Nine valuation models for PEP
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 167.44 | +30% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 54.28 | -58% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 129.29 | +0% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 32.06 | -75% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 23.07 | -82% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 211.88 | +64% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 146.81 | +14% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 85.42 | -34% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 89.04 | -31% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -43.12 | -133% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 142.38 | +10% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
PepsiCo, Inc. scores 8 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. On durability PEP scores 5.9/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are moderate - ROIC 11.7%, ROE 40.4%, ROA 7.7% - with debt at 2.45 times equity and a free-cash-flow yield of 5.9%. Debt of 2.45 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.
The dividend yield is high at 4.49% (payout ratio 72%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from PepsiCo Beverages North America 30%, PepsiCo Foods North America 26%, Africa, Middle East and South Asia 21% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 2/10 and Congressional trading 7/10 on the GLS smart-money scales; the last recorded Congressional buy was on 26 Aug 2026.
| Piotroski F-score | 8 / 9 | ROIC | 11.7% |
|---|---|---|---|
| GLS Moat | 5.9 / 10 | ROE | 40.4% |
| Debt / equity | 2.45 | ROA | 7.7% |
| Free-cash-flow yield | 5.9% | Payout ratio | 72% |
| Institutions | 10 / 10 | Insiders · Congress | 2 · 7 / 10 |
Wheel Score 58: Fair
A Wheel Score of 58 puts PepsiCo, Inc. in the Fair band - below the 70 the Sunday Scan requires. Value 3/25, Health 18/20, Moat 9/15, Premium 9/20 and Stability 20/20; the weakest part is Value (3/25).
Implied volatility is 24% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (9 of 20 points). The option chain is deep: 341,729 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 9.5M shares a day on a market cap of $176.6B, with a beta of 0.36 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 20 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 3 / 25 | -24% margin of safety | |
| Health | 18 / 20 | Piotroski 8/9 | |
| Moat | 9 / 15 | moat 5.9/10 | |
| Premium | 9 / 20 | implied volatility 24% | |
| Stability | 20 / 20 | 9.5M shares/day, $176.6B cap, beta 0.36 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for PEP in the nightly calendar.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Beverages - Non-Alcoholic
The 12 companies below are the closest to PepsiCo, Inc. by market cap within the Beverages - Non-Alcoholic industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| MNST Monster Beverage Corporation | 45.34 | 26.64 | -70% | 66Good | $88.8B |
| KO The Coca-Cola Company | 92.00 | 47.08 | -95% | 59Fair | $395.8B |
| CCEP Coca-Cola Europacific Partners PLC | 109.77 | 80.31 | -37% | 61Fair | $48.7B |
| KDP Keurig Dr Pepper Inc. | 34.18 | 21.80 | -57% | 58Fair | $46.5B |
| FMX Fomento Económico Mexicano, S.A.B. de C.V. | 120.99 | 825.52 | +85% | 80Prime | $41.2B |
| KOF Coca-Cola FEMSA, S.A.B. de C.V. | 115.67 | 508.81 | +77% | 77Good | $24.3B |
| COKE Coca-Cola Consolidated, Inc. | 204.55 | 243.03 | +16% | 80Prime | $16.1B |
| CELH Celsius Holdings, Inc. | 28.16 | 21.08 | -34% | 58Fair | $7.1B |
| PRMB Primo Brands Corporation | 18.78 | 14.56 | -29% | 59Fair | $6.8B |
| COCO The Vita Coco Company, Inc. | 57.67 | 54.79 | -5% | 70Good | $3.3B |
| FIZZ National Beverage Corp. | 34.31 | 31.86 | -8% | 61Fair | $3.2B |
| SUJA Suja Life, Inc. | 11.94 | 6.78 | -76% | 14No options | $284M |
⚖ Compare PEP with 7 of them All Consumer Defensive stocks →
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about PEP
Is PEP undervalued right now?
No: at 129.27 the stock trades 24% above the GLS average fair value of 104.37 (data as of 16 Oct 2026). The margin of safety is negative.
What is the Wheel Score of PEP and what does it mean?
PEP scores 58 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for PEP?
104.37 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does PepsiCo, Inc. report earnings next?
No upcoming earnings date is recorded for PEP in our calendar as of 16 Oct 2026; the Calendars page is refreshed every morning.
Does PEP have listed options, and how liquid are they?
Yes. The nightly snapshot found 1,000 listed contracts with 341,729 open interest across all expiries and implied volatility of 24% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.