Research on the Investment Value of PepsiCo Based on Multiples Valuation
DOI:
https://doi.org/10.54691/bcpbm.v31i.2662Keywords:
Corporate’s Valuation; Multiples Valuation; PepsiCo.Abstract
In finance, it is a significant issue to determine whether a company's stock has been correctly valued at a given time. This paper uses multiples valuation based on P/E ratio, Enterprise Value, Stock Price, Free Cash Flow and Earning Before Interests, Taxes, Depreciation, and Amortization to give an investment analysis on corporate valuation of PepsiCo. Based on the multiple valuation, the paper collects the data of PepsiCo's five competitors in the beverage and food industry and then evaluates PepsiCo, and draws a conclusion that PepsiCo's stock price is slightly overvalued. Besides, this paper holds that PepsiCo pays more attention to the external effect brought by the production operation after analyzing the strategy of PepsiCo, and that is one of the reasons why PepsiCo's finances are relatively stable. The valuation of PepsiCo in this paper has some guiding significance for investment, which can remind investors to estimate the investment income of PepsiCo carefully, or provide reference and basis for investment by referring to the valuation method in this paper.
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