PepsiCo, Inc. (PEP) — Free Cash Flow Yield
Consumer Defensive
PepsiCo, Inc. engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide. The company operates through six segments: PepsiCo Foods North America; PepsiCo Beverages North America; International Beverages Franchise; Europe, Middle East and Africa; Latin America Foods; and Asia Pacific Foods. It offers cereals, chips, dips, granola bars, oatmeal, pasta, rice, and syrups and mixes; refrigerated dips and spreads; beverage concentrates, fountain syrups, and finished goods; and ready-to-drink tea and coffee products. The company also provides SodaStream sparkling water makers and related products, as well as various dairy products under the Agusha, Chudo, and Domik v Derevne brands. It serves wholesale and other distributors, foodservice customers, grocery stores, drug stores, convenience stores, discount/dollar stores, mass merchandisers, membership stores, hard discounters, e-commerce retailers and authorized independent bottlers, and others through a network of direct-store-delivery, customer warehouse, and distributor networks, as well as directly to consumers through e-commerce platforms and retailers. PepsiCo, Inc. was founded in 1898 and is based in Purchase, New York.
| Metric | Value |
|---|---|
| FCF Yield | 4.5% |
| Consumer Defensive Sector Avg FCF Yield | 6.4% |
| Annual Free Cash Flow | $7.7B |
| Market Cap | $172.0B |
| P/E Ratio | 16.5x |
PepsiCo, Inc.'s FCF yield of 4.5% is below the Consumer Defensive sector average (6.4%).
Frequently Asked Questions
What is PepsiCo, Inc.'s (PEP) free cash flow yield?
PepsiCo, Inc.'s (PEP) free cash flow yield is 4.5%. That is below the Consumer Defensive sector average (6.4%).
Is PEP's free cash flow yield good?
At 4.5%, PEP's free cash flow yield is considered fair — yields above 10% are generally excellent, 7–10% good, 4–7% fair, and below 4% weak, though context varies by sector and growth stage.
How much free cash flow does PepsiCo, Inc. generate?
PepsiCo, Inc. generated $7.7B in free cash flow, against a market cap of $172.0B.
How is free cash flow yield calculated?
Free cash flow yield = (Free Cash Flow ÷ Market Capitalization) × 100%. Free cash flow equals operating cash flow minus capital expenditures.
Data from public filings. Not investment advice. Calculate your own FCF yield →