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PepsiCo Inc. (PEP)


Price to FCFE (P/FCFE)

Intermediate level


Free Cash Flow to Equity (FCFE)

PepsiCo Inc., FCFE calculation

US$ in millions

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12 months ended Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 26, 2015
Net income attributable to PepsiCo 7,314  12,515  4,857  6,329  5,452 
Net income attributable to noncontrolling interests 39  44  51  50  49 
Net noncash charges 2,775  (4,056) 5,573  3,113  4,087 
Change in assets and liabilities (479) 912  (487) 912  992 
Net cash provided by operating activities 9,649  9,415  9,994  10,404  10,580 
Capital spending (4,232) (3,282) (2,969) (3,040) (2,758)
Sales of property, plant and equipment 170  134  180  99  86 
Proceeds from issuances of long-term debt 4,621  —  7,509  7,818  8,702 
Payments of long-term debt (3,970) (4,007) (4,406) (3,105) (4,095)
Cash tender and exchange offers/debt redemptions (1,007) (1,589) —  (2,504) — 
Short-term borrowings, original maturity more than three months, proceeds 91  59  15 
Short-term borrowings, original maturity more than three months, payments (2) (17) (128) (27) (43)
Short-term borrowings, original maturity three months or less, net (3) (1,352) (1,016) 1,505  53 
Free cash flow to equity (FCFE) 5,232  (695) 9,255  11,209  12,540 

Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-15), 10-K (filing date: 2016-02-11).

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 decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Price to FCFE Ratio, Current

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

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No. shares of common stock outstanding 1,389,544,618
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 5,232 
FCFE per share 3.77
Current share price (P) 146.99
Valuation Ratio
P/FCFE 39.04
Benchmarks
P/FCFE, Competitors1
Coca-Cola Co. 85.93
P/FCFE, Sector
Beverages 201.00
P/FCFE, Industry
Consumer Goods 20.16

Based on: 10-K (filing date: 2020-02-13).

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

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Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 26, 2015
No. shares of common stock outstanding1 1,389,544,618 1,404,686,108 1,419,908,267 1,427,214,232 1,445,412,743
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 5,232  (695) 9,255  11,209  12,540 
FCFE per share3 3.77 -0.49 6.52 7.85 8.68
Share price1, 4 146.47 115.91 112.14 106.73 96.90
Valuation Ratio
P/FCFE5 38.90 17.20 13.59 11.17
Benchmarks
P/FCFE, Competitors6
Coca-Cola Co. 65.60 28.85 21.48 17.78
P/FCFE, Sector
Beverages 156.44 22.01 16.96 14.22
P/FCFE, Industry
Consumer Goods 16.20 15.64 13.04 13.25

Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-15), 10-K (filing date: 2016-02-11).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2019 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 5,232,000,000 ÷ 1,389,544,618 = 3.77

4 Closing price as at the filing date of PepsiCo Inc.’s Annual Report.

5 2019 Calculation
P/FCFE = Share price ÷ FCFE per share
= 146.47 ÷ 3.77 = 38.90

6 Click competitor name to see calculations.

Valuation 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 decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.