Using the industry peer median P/E multiple (trailing + forward), PepsiCo, Inc. (PEP) has a fair value of $174.23 based on 3 comparable companies in the Beverages - Non-Alcoholic industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| PepsiCo, Inc.PEP | 207,830 | 25.2x | 17.6x |
| The Coca-Cola CompanyKO | 322,705 | 24.7x | 23.2x |
| Monster Beverage CorporationMNST | 70,777 | 37.3x | 31.9x |
| Keurig Dr Pepper Inc.KDP | 35,713 | 17.2x | 13.7x |
| Industry Median | 24.7x | 23.2x | |
| (*) Profit after tax | 8,240 | 11,841 | |
| Equity Value | 203,384 | 275,051 | |
| (/) Outstanding shares | 1,373 | 1,373 | |
| Fair Price | $148 | $200 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.