Discounted Cash Flow (DCF) Analysis Levered
PepsiCo, Inc. (PEP)
$171.77
+1.66 (+0.98%)
All numbers are in Millions, Currency in USD
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 | 63,525 | 64,661 | 67,161 | 70,372 | 79,474 | 84,117.22 | 89,031.72 | 94,233.34 | 99,738.87 | 105,566.05 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 9,994 | 9,415 | 9,649 | 10,613 | 11,616 | 12,509.46 | 13,240.32 | 14,013.87 | 14,832.63 | 15,699.21 |
| 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 | 7,025 | 6,133 | 5,417 | 6,373 | 6,991 | 7,816.50 | 8,273.17 | 8,756.53 | 9,268.12 | 9,809.61 |
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 | 63,525 | 64,661 | 67,161 | 70,372 | 79,474 | 84,117.22 | 89,031.72 | 94,233.34 | 99,738.87 | 105,566.05 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 9,994 | 9,415 | 9,649 | 10,613 | 11,616 | 12,509.46 | 13,240.32 | 14,013.87 | 14,832.63 | 15,699.21 |
| 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 | 7,025 | 6,133 | 5,417 | 6,373 | 6,991 | 7,816.50 | 8,273.17 | 8,756.53 | 9,268.12 | 9,809.61 |
| WACC | ||||||||||
| PV LFCF | 7,426.60 | 7,468.40 | 7,510.44 | 7,552.72 | 7,595.23 | |||||
| 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 |