Discounted Cash Flow (DCF) Analysis Levered

PepsiCo, Inc. (PEP)

$167.98

+0.28 (+0.17%)
All numbers are in Millions, Currency in USD
Stock DCF: 126.31 | 167.98 | overvalue

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 64,66167,16170,37279,47486,39292,933.2299,969.71107,538.97115,681.34124,440.22
Revenue (%)
Operating Cash Flow 9,4159,64910,61311,61610,81113,222.3114,223.4515,300.3916,458.8617,705.05
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 6,1335,4176,3736,9915,6047,785.958,375.469,009.619,691.7810,425.60

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 64,66167,16170,37279,47486,39292,933.2299,969.71107,538.97115,681.34124,440.22
Operating Cash Flow 9,4159,64910,61311,61610,81113,222.3114,223.4515,300.3916,458.8617,705.05
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 6,1335,4176,3736,9915,6047,785.958,375.469,009.619,691.7810,425.60
WACC
PV LFCF 7,310.067,382.927,456.507,530.827,605.88
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