Stock Valuation / PEP
Is PepsiCo, Inc. (PEP) Overvalued? Fair Value & 5-Year Target
PepsiCo, Inc. trades at $127.30 (P/E 15.99). Our reference model estimates a fair value of $153.22 at its recent average P/E of 19.25.
| Current price | $127.30 |
|---|---|
| Current EPS | $7.96 |
| Current P/E | 15.99 |
| Average P/E | 19.25 |
| Fair value (at avg P/E) | $153.22 |
| Upside to fair value | +20.4% |
| Illustrative 5-yr target (25× P/E, 15% growth) | $400.26 |
What drives PEP's valuation
Changing either assumption moves the target: a higher P/E multiple or faster EPS growth raises fair value, a lower multiple or slower growth lowers it. The interactive dashboard lets you edit both and re-run the model instantly.
About PepsiCo, Inc.
PepsiCo, Inc. engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide. The company operates through six segments: PepsiCo Foods North America; PepsiCo Beverages North America; International Beverages Franchise; Europe, Middle East and Africa; Latin America Foods; and Asia Pacific Foods. It offers cereals, chips, dips, granola bars, oatmeal, pasta, rice, and syrups and mixes; refrigerated dips and spreads; beverage concentrates, fountain syrups, and finished goods; and ready-to-drink tea and coffee products. The company also provides SodaStream sparkling water makers and related products, as well as various dairy products under the Agu
Frequently asked questions
What is PEP's fair value?
At its recent average P/E of 19.25, PepsiCo, Inc. (PEP) has a reference fair value of about $153.22, which is +20.4% versus the current price of $127.30.
Is PepsiCo, Inc. (PEP) overvalued or undervalued?
Based on the average-P/E reference model, PepsiCo, Inc. looks undervalued relative to fair value by roughly +20.4%. This is a model output, not investment advice — change the P/E and growth assumptions in the dashboard for your own view.
What is a 5-year price target for PEP?
Under an illustrative model of 25× P/E and 15% annual EPS growth, the implied 5-year target is $400.26. Adjust both inputs on the interactive page to match your assumptions.
Open the interactive PEP valuation dashboard →
Figures are for informational purposes only and are not investment advice. Data as of 2026-10-14.