PepsiCo Inc. (PEP)

Price to FCFE (P/FCFE)

Difficulty: Intermediate

PepsiCo Inc., FCFE calculation

USD $ in millions

	12 months ended	Dec 29, 2018	Dec 30, 2017	Dec 31, 2016	Dec 26, 2015	Dec 27, 2014
	Net income attributable to PepsiCo
	Net income attributable to noncontrolling interests
	Net noncash charges
	Change in assets and liabilities
	Net cash provided by operating activities
	Capital spending
	Sales of property, plant and equipment
	Proceeds from issuances of long-term debt
	Payments of long-term debt
	Cash tender and exchange offers/debt redemptions
	Short-term borrowings, original maturity more than three months, proceeds
	Short-term borrowings, original maturity more than three months, payments
	Short-term borrowings, original maturity three months or less, net
	Free cash flow to equity (FCFE)

Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to PepsiCo Inc.’s equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	PepsiCo Inc.’s FCFE declined from 2016 to 2017 and from 2017 to 2018.

PepsiCo Inc., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding
Selected Financial Data (USD $)
Free cash flow to equity (FCFE) (in millions)
FCFE per share
Current share price (P)
Ratio
P/FCFE
Benchmarks
P/FCFE, Competitors
Coca-Cola Co.
P/FCFE, Sector
Beverages
P/FCFE, Industry
Consumer Goods

If company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.

Otherwise, if company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

PepsiCo Inc., historical P/FCFE calculation, comparison to benchmarks

		Dec 29, 2018	Dec 30, 2017	Dec 31, 2016	Dec 26, 2015	Dec 27, 2014
	No. shares of common stock outstanding¹
	Selected Financial Data (USD $)
	Free cash flow to equity (FCFE) (in millions)²
	FCFE per share⁴
	Share price^1, 3
	Ratio
	P/FCFE⁵
	Benchmarks
	P/FCFE, Competitors
	Coca-Cola Co.
	P/FCFE, Sector
	Beverages
	P/FCFE, Industry
	Consumer Goods

¹ Data adjusted for splits and stock dividends.

³ Close price on the filing date of PepsiCo Inc.’s Annual Report.

2018 Calculations

⁴ FCFE per share = FCFE ÷ No. shares of common stock outstanding
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⁵ P/FCFE = Share price ÷ FCFE per share
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Ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	PepsiCo Inc.’s P/FCFE ratio increased from 2016 to 2017 but then declined significantly from 2017 to 2018.

	PepsiCo Inc.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

	All companies
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality