PepsiCo Inc., FCFE calculation

US$ in millions

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	6	3	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.

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

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.

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

	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 price^1, 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.

PepsiCo Inc. (PEP)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical