PepsiCoTSX:PEP -0.58%70 FCF Margin % is 6.22% as of Jun. 2026, which is 29% below its 10-year median of 8.73. GuruFocus rates TSX:PEP with a GF Score™ of 70/100 and a GF Value™ of C$24.97 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 116 Beverages - Non-Alcoholic companies, PepsiCo ranks better than 68.1% on this metric.
FCF Margin % is calculated as Free Cash Flow divided by its Revenue. PepsiCo's Free Cash Flow for the
three
months ended in Jun. 2026 was C$2,112 Mil. PepsiCo's Revenue for the
three
months ended in Jun. 2026 was C$33,936 Mil. Therefore, PepsiCo's FCF Margin % for the quarter that ended in Jun. 2026 was 6.22%.
The historical rank and industry rank for PepsiCo's FCF Margin % or its related term are showing as below:
TSX:PEP'
s FCF Margin % Range Over the Past 10 Years
Min: 6.49 Med: 8.73 Max: 12.14
Current: 9.58
During the past 13 years, the highest FCF Margin % of PepsiCo was 12.14%. The lowest was 6.49%. And the median was 8.73%.
TSX:PEP's FCF Margin % is ranked better than 68.1% of 116
companies
in the Beverages - Non-Alcoholic industry
Industry Median: 5.365
vs TSX:PEP: 9.58
PepsiCo FCF Margin % Related Terms
PepsiCo FCF Margin % Historical Data
* Premium members only.
The historical data trend for PepsiCo's FCF Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Beverages - Non-Alcoholic subindustry, PepsiCo's FCF Margin %, along with its competitors' market caps and FCF Margin % 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 FCF Margin % vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, PepsiCo's FCF Margin % distribution charts can be found below:
* The bar in red indicates where PepsiCo's FCF Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
PepsiCo (TSX:PEP) has a FCF Margin % of 6.22% as of Jun. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on PepsiCo and its competitors. This is 29% below median its historical median of 8.73. Over the past decade, PepsiCo's FCF Margin % has ranged from 6.49 to 12.14. According to the industry distribution chart, PepsiCo ranks #37 out of 116 companies in the Beverages - Non-Alcoholic industry, placing it in the top 31.9%.
Is PepsiCo's FCF Margin % too high?
PepsiCo's current FCF Margin % of 6.22% is 29% below median its 10-year median of 8.73. Over the past 10 years, this metric has ranged from a low of 6.49 to a high of 12.14. The Beverages - Non-Alcoholic industry median FCF Margin % is 5.37. PepsiCo's value of 6.22% is 15.9% above this industry median. Based on the distribution chart, PepsiCo ranks #37 out of 116 companies in the Beverages - Non-Alcoholic industry, which is above the industry midpoint. Overall, PepsiCo has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PepsiCo's FCF Margin % compare to MNST and KDP?
According to the Beverages - Non-Alcoholic industry distribution chart, PepsiCo ranks #37 out of 116 companies for FCF Margin %. This puts PepsiCo in the upper half of its industry. The industry median FCF Margin % is 5.37. PepsiCo's value of 6.22% is 15.9% above this benchmark. Historically, PepsiCo's own FCF Margin % has ranged from 6.49 to 12.14 over the past decade. While the company's 10-year median is 8.73 vs. the industry median of 5.37, 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 FCF Margin % for a Beverages - Non-Alcoholic company?
The median FCF Margin % among Beverages - Non-Alcoholic companies is 5.37, based on 116 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PepsiCo's current FCF Margin % of 6.22% is 15.9% 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 FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on PepsiCo and its competitors. For the Beverages - Non-Alcoholic industry, the median FCF Margin % is 5.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PepsiCo's current FCF Margin % is 6.22%, which is 29% below median its own 10-year median of 8.73. 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 (TSX:PEP) is currently considered Modestly Undervalued. The stock's GF Value™ is C$24.97, compared to a current price of C$20.43 — trading 18.2% below its estimated fair value. The current FCF Margin % is 6.22%, which is 29% below median its 10-year median of 8.73 and 15.9% above the Beverages - Non-Alcoholic industry median of 5.37. PepsiCo's overall GF Score™ is 70/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For PepsiCo (TSX:PEP), the current FCF Margin % is 6.22% 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 (TSX:PEP) Overvalued in 2026?
Based on GuruFocus' analysis, PepsiCo stock appears to be undervalued.
The current stock price of C$20.43 is trading 18.2% below its estimated GF Value™ of C$24.97.
GuruFocus considers PepsiCo to be Modestly Undervalued.
Key valuation signals for TSX:PEP:
FCF Margin %: 6.22% (29% below median its 10-year median of 8.73)
GF Value™: C$24.97 vs. price of C$20.43 (18.2% below fair value)
Industry Position: 15.9% above the Beverages - Non-Alcoholic median (#37 of 116)
No single metric tells the full story. See the TSX: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.
70GF Score
Get the complete analysis for TSX:PEP
FCF Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSX:PEP has been successfully added to your 
