Discounted Cash Flow (DCF) Analysis Levered
PepsiCo, Inc. (PEP)
$167.98
+0.28 (+0.17%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 64,661 | 67,161 | 70,372 | 79,474 | 86,392 | 92,933.22 | 99,969.71 | 107,538.97 | 115,681.34 | 124,440.22 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 9,415 | 9,649 | 10,613 | 11,616 | 10,811 | 13,222.31 | 14,223.45 | 15,300.39 | 16,458.86 | 17,705.05 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -3,282 | -4,232 | -4,240 | -4,625 | -5,207 | -5,436.37 | -5,847.99 | -6,290.77 | -6,767.08 | -7,279.45 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 6,133 | 5,417 | 6,373 | 6,991 | 5,604 | 7,785.95 | 8,375.46 | 9,009.61 | 9,691.78 | 10,425.60 |
Weighted Average Cost Of Capital
| Share price | $ 167.98 |
|---|---|
| Beta | 0.537 |
| Diluted Shares Outstanding | 1,387 |
| Cost of Debt | |
| Tax Rate | 16.77 |
| After-tax Cost of Debt | 2.00% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.269 |
| Total Debt | 39,071 |
| Total Equity | 232,988.26 |
| Total Capital | 272,059.26 |
| Debt Weighting | 14.36 |
| Equity Weighting | 85.64 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 64,661 | 67,161 | 70,372 | 79,474 | 86,392 | 92,933.22 | 99,969.71 | 107,538.97 | 115,681.34 | 124,440.22 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 9,415 | 9,649 | 10,613 | 11,616 | 10,811 | 13,222.31 | 14,223.45 | 15,300.39 | 16,458.86 | 17,705.05 |
| Capital Expenditure | -3,282 | -4,232 | -4,240 | -4,625 | -5,207 | -5,436.37 | -5,847.99 | -6,290.77 | -6,767.08 | -7,279.45 |
| Free Cash Flow | 6,133 | 5,417 | 6,373 | 6,991 | 5,604 | 7,785.95 | 8,375.46 | 9,009.61 | 9,691.78 | 10,425.60 |
| WACC | ||||||||||
| PV LFCF | 7,310.06 | 7,382.92 | 7,456.50 | 7,530.82 | 7,605.88 | |||||
| SUM PV LFCF | 37,286.17 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.51 |
| Free cash flow (t + 1) | 10,634.11 |
| Terminal Value | 235,789.66 |
| Present Value of Terminal Value | 172,017.58 |
Intrinsic Value
| Enterprise Value | 209,303.75 |
|---|---|
| Net Debt | 34,117 |
| Equity Value | 175,186.75 |
| Shares Outstanding | 1,387 |
| Equity Value Per Share | 126.31 |