Is PepsiCo, Inc. (PEP) Undervalued?
The traditional Graham Number cannot be calculated for PepsiCo, Inc. (PEP) due to missing data. Consider using DCF or other valuation methods for a complete picture.
Analysis updated March 6, 2026
PEP Key Valuation Metrics
| Metric | Value | Signal |
|---|---|---|
| Current Price | $158.70 | — |
| Graham Number | N/A | — |
| P/E Ratio | N/A | Unprofitable |
| P/B Ratio | 10.66 | ▼ High |
| DCF Fair Value | N/A | — |
| Dividend Yield | 3.54% | ▲ High |
| 52-Week Range | $127.60 – $171.48 | Near 52-week high |
| Market Cap | N/A | Micro Cap |
| Sector | Consumer Defensive | — |
How We Calculated PEP's Graham Number
The Graham Number, developed by Benjamin Graham (the father of value investing), estimates a stock's maximum fair price based on its earnings and book value.
Graham Number = √(22.5 × EPS × BVPS)
For PepsiCo, Inc. (PEP):
- Earnings Per Share (EPS): N/A
- Book Value Per Share (BVPS): N/A
PEP Dividend Profile
PepsiCo, Inc. currently pays a quarterly dividend of $1.41 per share, yielding 3.54% at the current price.
| Annual Dividend | $5.62 |
| Dividend Yield | 3.54% |
| Payout Ratio | N/A |
| Consecutive Years Paid | 5+ years |
| 5-Year Dividend Growth | -25.1% |
| Payment Frequency | Quarterly |
👑 PepsiCo, Inc. is a Dividend Aristocrat — it has increased its dividend for 25+ consecutive years.
Dividend History
PEP Value Score: 1/10
Our proprietary value score rates PepsiCo, Inc. a 1 out of 10, placing it in the “Overvalued / Caution” category for value investors.
Score Components
Graham Number not available
P/E not available
Significant premium to book value
DCF value not available
Solid 3.5% yield
Weak balance sheet metrics
Score methodology: How We Score Stocks
Stocks Similar to PEP
These Consumer Defensive stocks have similar valuation profiles to PepsiCo, Inc.:
Frequently Asked Questions About PEP
Is PEP undervalued right now?
Based on Graham Number analysis, PEP does not appear significantly undervalued as of March 6, 2026. The Graham Number of $N/A compared to the current price of $158.70 indicates a N/A% difference.
What is PepsiCo, Inc.'s intrinsic value?
Using our DCF model, PepsiCo, Inc.'s estimated intrinsic value is $N/A per share. The Graham Number suggests a fair value of $N/A.
What is the Graham Number for PEP?
The Graham Number for PEP is $N/A, calculated using EPS of $N/A and Book Value Per Share of $N/A. The formula is sqrt(22.5 x EPS x BVPS).
Does PEP pay a dividend?
Yes, PEP pays dividends with a yield of 3.54%. The annual dividend is $5.62 per share. It has paid dividends for 5+ consecutive years.
Is PEP a good buy right now?
Our value score rates PEP a 1/10. The stock is in the "Overvalued / Caution" category. However, this is analysis — not financial advice. Consider your own risk tolerance, portfolio allocation, and investment timeline before making any decisions.
Start Analyzing PEP Today
Ready to invest in PepsiCo, Inc.? Open a free brokerage account and start trading PEP with $0 commissions.
We may earn a commission when you open an account through our links. This does not affect our analysis or ratings.
Learn More About Value Investing
Tools
- Graham Number Calculator — Calculate the Graham Number for any stock
- DCF Calculator — Run your own discounted cash flow analysis
- Stock Screener — Filter stocks by value metrics
Related Articles
About PepsiCo, Inc.
PepsiCo, Inc. manufactures, markets, distributes, and sells various beverages and convenient foods worldwide. The company operates through seven segments: Frito-Lay North America; Quaker Foods North America; PepsiCo Beverages North America; Latin America; Europe; Africa, Middle East and South Asia; and Asia Pacific, Australia and New Zealand and China Region. It provides dips, cheese-flavored snacks, and spreads, as well as corn, potato, and tortilla chips; cereals, rice, pasta, mixes and syrups...
Disclaimer: This analysis is for informational and educational purposes only and does not constitute financial advice, a recommendation, or a solicitation to buy or sell any security. Past performance does not guarantee future results. Always do your own research and consult a licensed financial advisor before making investment decisions. Data sourced from Financial Modeling Prep API and may be delayed. Last updated: March 6, 2026.