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PepsiCoXSWX:PEP 81 3-Year FCF Growth Rate is 11.40% as of Jun. 2026, which is 78% above its 10-year median of 6.40. GuruFocus rates XSWX:PEP with a GF Score™ of 81/100 and a GF Value™ of CHF134.70 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 80 Beverages - Non-Alcoholic companies, PepsiCo ranks better than 50% on this metric.
During the past 12 months, PepsiCo's average Free Cash Flow per Share Growth Rate was 31.70% per year.
During the past 3 years, the average Free Cash Flow per Share Growth Rate was 11.40% per year.
During the past 5 years, the average Free Cash Flow per Share Growth Rate was 4.20% per year.
During the past 10 years, the average Free Cash Flow per Share Growth Rate was 0.60% per year.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average Free Cash Flow per Share growth rate.
During the past 13 years, the highest 3-Year average Free Cash Flow per Share Growth Rate of PepsiCo was 125.80% per year. The lowest was -30.70% per year. And the median was 6.40% per year.
Free Cash Flow per Share is the amount of Free Cash Flow per outstanding share of the company's stock. Free Cash Flow is considered one of the most important parameters to measure a company's earnings power by value investors because it is not subject to estimates of Depreciation, Depletion and Amortization (DDA). However, when we look at the Free Cash Flow, we should look from a long term perspective, because any year's Free Cash Flow can be drastically affected by the spending on Property, Plant, & Equipment (PPE) of the business in that year. Over the long term, Free Cash Flow should give pretty good picture on the real earnings power of the company. It's used in the calculation of Forward Rate of Return (Yacktman) %.
PepsiCo 3-Year FCF Growth Rate Related Terms
XSWX:PEP vs MNST, KDP, COCSF: 3-Year FCF Growth Rate Comparison
For the Beverages - Non-Alcoholic subindustry, PepsiCo's 3-Year FCF Growth Rate, along with its competitors' market caps and 3-Year FCF Growth Rate data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
PepsiCo 3-Year FCF Growth Rate vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, PepsiCo's 3-Year FCF Growth Rate distribution charts can be found below:
* The bar in red indicates where PepsiCo's 3-Year FCF Growth Rate falls into.
This is the 3-year average growth rate of Free Cash Flow per Share. The growth rate is calculated using exponential compounding based on the latest four year annual data.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average Free Cash Flow per Share growth rate.
What does a 3-Year FCF Growth Rate of 11.40% mean?
PepsiCo (XSWX:PEP) has a 3-Year FCF Growth Rate of 11.40% as of Jun. 2026. 3-Year FCF Growth Rate is the 3-year average growth rate of Free Cash Flow per Share. View historical data for PepsiCo and its competitors. This is 78% above median its historical median of 6.40. According to the industry distribution chart, PepsiCo ranks #40 out of 80 companies in the Beverages - Non-Alcoholic industry, placing it in the top 50%.
Is PepsiCo's 3-Year FCF Growth Rate too high?
PepsiCo's current 3-Year FCF Growth Rate of 11.40% is 78% above median its 10-year median of 6.40. The Beverages - Non-Alcoholic industry median 3-Year FCF Growth Rate is 11.10. PepsiCo's value of 11.40% is 2.7% above this industry median. Based on the distribution chart, PepsiCo ranks #40 out of 80 companies in the Beverages - Non-Alcoholic industry, which is above the industry midpoint. Overall, PepsiCo has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PepsiCo's 3-Year FCF Growth Rate compare to MNST and KDP?
According to the Beverages - Non-Alcoholic industry distribution chart, PepsiCo ranks #40 out of 80 companies for 3-Year FCF Growth Rate. This puts PepsiCo in the upper half of its industry. The industry median 3-Year FCF Growth Rate is 11.10. PepsiCo's value of 11.40% is 2.7% above this benchmark. While the company's 10-year median is 6.40 vs. the industry median of 11.10, PepsiCo has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year FCF Growth Rate for a Beverages - Non-Alcoholic company?
The median 3-Year FCF Growth Rate among Beverages - Non-Alcoholic companies is 11.10, based on 80 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year FCF Growth Rate significantly above this median, while those in the bottom quartile fall well below. However, 3-Year FCF Growth Rate should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PepsiCo's current 3-Year FCF Growth Rate of 11.40% is 2.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year FCF Growth Rate mean?
A high 3-Year FCF Growth Rate can signal that a stock is expensive relative to its fundamentals. 3-Year FCF Growth Rate is the 3-year average growth rate of Free Cash Flow per Share. View historical data for PepsiCo and its competitors. For the Beverages - Non-Alcoholic industry, the median 3-Year FCF Growth Rate is 11.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PepsiCo's current 3-Year FCF Growth Rate is 11.40%, which is 78% above median its own 10-year median of 6.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PepsiCo stock overvalued right now?
Based on GuruFocus' analysis, PepsiCo (XSWX:PEP) is currently considered Modestly Undervalued. The stock's GF Value™ is CHF134.70, compared to a current price of CHF112.00 — trading 16.9% below its estimated fair value. The current 3-Year FCF Growth Rate is 11.40%, which is 78% above median its 10-year median of 6.40 and 2.7% above the Beverages - Non-Alcoholic industry median of 11.10. PepsiCo's overall GF Score™ is 81/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year FCF Growth Rate calculated?
3-Year FCF Growth Rate is calculated from a company's financial statements. For PepsiCo (XSWX:PEP), the current 3-Year FCF Growth Rate is 11.40% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is PepsiCo (XSWX:PEP) Overvalued in 2026?
Based on GuruFocus' analysis, PepsiCo stock appears to be undervalued.
The current stock price of CHF112.00 is trading 16.9% below its estimated GF Value™ of CHF134.70.
GuruFocus considers PepsiCo to be Modestly Undervalued.
Key valuation signals for XSWX:PEP:
3-Year FCF Growth Rate: 11.40% (78% above median its 10-year median of 6.40)
GF Value™: CHF134.70 vs. price of CHF112.00 (16.9% below fair value)
Industry Position: 2.7% above the Beverages - Non-Alcoholic median (#40 of 80)
No single metric tells the full story. See the XSWX:PEP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PepsiCo is a global leader in snacks and beverages, owning well-known household brands including Pepsi, Mountain Dew, Gatorade, Lay's, Cheetos, and Doritos, among others. The company dominates the global savory snacks market and also ranks as the second-largest beverage provider in the world (behind Coca-Cola) with diversified exposure to carbonated soft drinks, or CSD, as well as water, sports, and energy drink offerings. Convenience foods account for approximately 58% of its total revenue, with beverages making up the rest. Pepsi owns the bulk of its manufacturing and distribution capacity in the US, but uses bottlers overseas for beverages. International markets made up 41% of total sales and 46% of operating profits before corporate expenses in 2025.
81GF Score
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