Discounted Cash Flow (DCF) Analysis Levered

PepsiCo, Inc. (PEP)

$171.77

+1.66 (+0.98%)
All numbers are in Millions, Currency in USD
Stock DCF: 173.32 | 171.77 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 63,52564,66167,16170,37279,47484,117.2289,031.7294,233.3499,738.87105,566.05
Revenue (%)
Operating Cash Flow 9,9949,4159,64910,61311,61612,509.4613,240.3214,013.8714,832.6315,699.21
Operating Cash Flow (%)
Capital Expenditure -2,969-3,282-4,232-4,240-4,625-4,692.96-4,967.14-5,257.35-5,564.50-5,889.61
Capital Expenditure (%)
Free Cash Flow 7,0256,1335,4176,3736,9917,816.508,273.178,756.539,268.129,809.61

Weighted Average Cost Of Capital

Share price $ 171.77
Beta 0.592
Diluted Shares Outstanding 1,389
Cost of Debt
Tax Rate 22.43
After-tax Cost of Debt 3.54%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.537
Total Debt 40,780
Total Equity 238,588.53
Total Capital 279,368.53
Debt Weighting 14.60
Equity Weighting 85.40
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 63,52564,66167,16170,37279,47484,117.2289,031.7294,233.3499,738.87105,566.05
Operating Cash Flow 9,9949,4159,64910,61311,61612,509.4613,240.3214,013.8714,832.6315,699.21
Capital Expenditure -2,969-3,282-4,232-4,240-4,625-4,692.96-4,967.14-5,257.35-5,564.50-5,889.61
Free Cash Flow 7,0256,1335,4176,3736,9917,816.508,273.178,756.539,268.129,809.61
WACC
PV LFCF 7,426.607,468.407,510.447,552.727,595.23
SUM PV LFCF 37,553.40

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.25
Free cash flow (t + 1) 10,005.80
Terminal Value 307,870.69
Present Value of Terminal Value 238,373.42

Intrinsic Value

Enterprise Value 275,926.81
Net Debt 35,184
Equity Value 240,742.81
Shares Outstanding 1,389
Equity Value Per Share 173.32