Price to FCFE (P/FCFE)
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PepsiCo Inc. pages available for free this week:
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Analysis of Liquidity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
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Free Cash Flow to Equity (FCFE)
PepsiCo Inc., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
- Net Cash Provided by Operating Activities
- The net cash provided by operating activities showed a fluctuating but generally positive trend over the analyzed periods. Starting at 10,613 million USD in 2020, it increased to 11,616 million USD in 2021, demonstrating a strengthening operational cash flow. However, it slightly declined to 10,811 million USD in 2022, indicating some reduction in cash generation from core operations during that year. Subsequently, there was a substantial increase to 13,442 million USD in 2023, the highest value in the series, suggesting improved operational efficiency or higher revenue generation. In 2024, the figure moderately decreased to 12,507 million USD but remained significantly above the earlier years except 2023, reflecting sustained strong operating cash flows.
- Free Cash Flow to Equity (FCFE)
- The FCFE exhibited notable volatility and a less consistent pattern compared to operating cash flow. Starting from a peak level of 17,721 million USD in 2020, the metric sharply declined to 3,025 million USD in 2021, indicating a major reduction in the cash available to equity shareholders after capital expenditures and debt repayments. In 2022, there was an improvement with FCFE rising to 5,045 million USD, yet the level remained considerably lower than the 2020 peak. The year 2023 saw a significant recovery with FCFE expanding to 12,892 million USD, suggesting improved free cash generation capacity or reduced financial obligations. However, in 2024, FCFE dropped again to 8,226 million USD, reflecting some tightening of free cash flow but still maintaining a considerably stronger position relative to 2021 and 2022.
- Overall Insight
- While operational cash flow maintained a generally robust and upward trajectory with minor fluctuations, the free cash flow to equity experienced pronounced variability. This disparity might imply that despite consistently strong cash generation from operations, capital investments, financing activities, or changes in working capital requirements significantly influenced the amount of cash ultimately available to equity holders. The recovery in both metrics post-2022 could indicate strategic adjustments or improved business conditions, although caution is warranted due to the recurrent volatility in FCFE.
Price to FCFE Ratio, Current
PepsiCo Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | |
| FCFE per share | |
| Current share price (P) | |
| Valuation Ratio | |
| P/FCFE | |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Coca-Cola Co. | |
| Mondelēz International Inc. | |
| Philip Morris International Inc. | |
| P/FCFE, Sector | |
| Food, Beverage & Tobacco | |
| P/FCFE, Industry | |
| Consumer Staples | |
Based on: 10-K (reporting date: 2024-12-28).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
PepsiCo Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | ||||||
| FCFE per share3 | ||||||
| Share price1, 4 | ||||||
| Valuation Ratio | ||||||
| P/FCFE5 | ||||||
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| Philip Morris International Inc. | ||||||
| P/FCFE, Sector | ||||||
| Food, Beverage & Tobacco | ||||||
| P/FCFE, Industry | ||||||
| Consumer Staples | ||||||
Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
1 Data adjusted for splits and stock dividends.
3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =
4 Closing price as at the filing date of PepsiCo Inc. Annual Report.
5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =
6 Click competitor name to see calculations.
The financial data reveals a dynamic performance pattern over the five-year period analyzed. A notable observation is the fluctuation in the share price, which experienced a general upward trend from 2020 to 2022, reaching its peak at 172.78 US dollars in the year ending December 31, 2022. However, following this peak, there was a decline in share price during the subsequent two years, dropping to 143.49 US dollars by the end of 2024.
When examining the Free Cash Flow to Equity (FCFE) per share, significant volatility is evident. The FCFE per share began at a relatively high level of 12.84 US dollars in 2020 but sharply declined to 2.19 US dollars the following year. After this dip, there was a moderate recovery to 3.66 US dollars in 2022, followed by a substantial increase to 9.38 US dollars in 2023, before decreasing again to 6 US dollars in 2024.
The Price to FCFE ratio (P/FCFE) further corroborates the fluctuations seen in both share price and FCFE per share. This ratio was relatively modest at 10.51 in 2020, but it escalated dramatically to 77 in 2021, indicating that the market price rose sharply relative to the cash generated per share. It then declined to 47.17 in 2022 and continued to decrease to 17.88 in 2023, suggesting a market correction or a normalization in valuation. In 2024, the ratio increased again to 23.92, reflecting renewed market optimism or changes in cash flow generation not directly proportional to the share price movements.
Overall, the data indicates a period of volatility in both market valuation and underlying cash flow performance. The peak share price in 2022 does not align with the lowest FCFE per share in 2021, suggesting potential external factors influencing investor sentiment. The fluctuations in the P/FCFE ratio highlight changing perceptions of company value relative to its cash flow capacity, with periods of both overvaluation and correction observable during the timeframe.
- Share Price Trend
- Increased from 2020 to 2022, then declined through 2023 and 2024.
- FCFE per Share Trend
- Sharp decline in 2021, moderate recovery through 2023, followed by a decrease in 2024.
- P/FCFE Ratio Trend
- High volatility with a peak in 2021, subsequent decline to 2023, and increase again in 2024.
- Insights
- The decoupling of share price and FCFE per share during certain periods suggests influences beyond fundamental cash flow metrics, leading to notable variability in company valuation across the years.