<div id="readability-page-1"><div><h2>Why PepsiCo is Back on Investors Radar</h2> <p>PepsiCo (PEP) has been quietly grinding higher, with shares up around 5% over the past 3 months. That steady climb is drawing fresh attention from income focused, defensive investors.</p> <p>See our latest analysis for PepsiCo.</p> <p>Zooming out, PepsiCo’s modest 1 year total shareholder return of 2.55% and slightly negative year to date share price return signal steady, not explosive, momentum as investors reassess its defensive earnings strength and valuation after recent cost cutting and pricing updates.</p> <p>If PepsiCo’s slow and steady climb appeals to you, it might be a good time to broaden your search and explore fast growing stocks with high insider ownership for bolder growth ideas.</p> <p>With earnings still growing and shares trading at a sizeable discount to some intrinsic estimates and analyst targets, is PepsiCo quietly undervalued here, or is the market already factoring in its next leg of growth?</p> <h2>Most Popular Narrative Narrative: 3.3% Undervalued</h2> <p>With PepsiCo last closing at $149.37 against a most-followed fair value near $154, the narrative leans toward modest upside driven by structural growth drivers rather than a deep value reset.</p> <blockquote> <p><em>Sustained investment and strategic focus on international expansion, particularly in emerging markets (e.g., India, LatAm, Middle East), is broadening PepsiCo's addressable market and driving faster, margin-accretive revenue growth, positioning the company to benefit from population growth and rising disposable incomes. (Expected impact: Top-line revenue and geographic diversification.)</em></p> </blockquote> <p>Read the complete narrative.</p> <p>Want to see the math behind that upside call? The narrative leans on disciplined growth, rising margins, and a future earnings multiple that might surprise you. Curious which levers really move that fair value?</p> <p><strong>Result: Fair Value of $154.41 (UNDERVALUED)</strong></p> <p>Have a read of the narrative in full and understand what's behind the forecasts.</p> <p>However, slower adoption of healthier products and execution risks around aggressive cost cutting could pressure volumes and margins and ultimately challenge that modest upside case.</p> <p>Find out about the key risks to this PepsiCo narrative.</p> <h2>Another Angle on Valuation</h2> <p>While the narrative fair value points to modest upside, PepsiCo actually looks pricey on earnings. Its P E of 28.6 times sits above peers at 26.1 times and even above a fair ratio of 27 times, which hints that today the margin for error may be thinner than it seems.</p> <p>See what the numbers say about this price — find out in our valuation breakdown.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/6e619119-02b5-478e-b119-cd604b0e6f1c/chart/pe-multiple-vs-industry?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/6e619119-02b5-478e-b119-cd604b0e6f1c/chart/pe-multiple-vs-industry"/><figcaption>NasdaqGS:PEP PE Ratio as at Dec 2025</figcaption></figure><h2> Build Your Own PepsiCo Narrative</h2> <p>If you see the story differently, or would rather dive into the numbers yourself, you can build a personalized view in just minutes with Do it your way.</p> <p>A great starting point for your PepsiCo research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.</p> <h2>Ready for your next investing move?</h2> <p>Before you log off, put Simply Wall Street’s powerful Screener to work so you do not miss high conviction ideas that could reshape your portfolio.</p> <ul> <li>Secure stronger income potential by targeting dependable payouts with these 13 dividend stocks with yields &gt; 3% that have the financial strength to keep rewarding shareholders.</li> <li>Position yourself ahead of structural growth trends by focusing on these 29 healthcare AI stocks transforming how medicine is delivered worldwide.</li> <li>Capitalize on value opportunities others overlook by narrowing in on these 916 undervalued stocks based on cash flows where cash flows suggest the market is still catching up.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p><div><p>Mobile Infrastructure for Defense and Disaster</p><p>The next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.</p><p>Get the investor briefing before the next round of contracts</p><p><span>Sponsored On Behalf of CiTech</span></p></div></div></div>

<p>PepsiCo's shares have risen 5% over the past three months, attracting attention from income-focused investors. Despite a modest 1-year return of 2.55%, the company is seen as undervalued with a fair value estimate of $154.41, compared to its current price of $149.37. Strategic international expansion and disciplined growth are driving revenue, though risks include slower adoption of healthier products and cost-cutting challenges. The P/E ratio of 28.6 suggests a thin margin for error. Simply Wall St provides analysis but not financial advice.</p>

PepsiCo (PEP): Assessing Valuation After a Steady Three-Month Share Price Climb