PepsiCoXTER:PEP +0.23%86 Beneish M-Score is -2.47 as of Jun. 24, 2026. GuruFocus rates XTER:PEP with a GF Score™ of 86/100 and a GF Value™ of €151.19 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 109 Beverages - Non-Alcoholic companies, PepsiCo ranks worse than 58.72% on this metric.
The zones of discrimination for M-Score is as such:
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Good Sign:
Beneish M-Score -2.47 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for PepsiCo's Beneish M-Score or its related term are showing as below:
XTER:PEP'
s Beneish M-Score Range Over the Past 10 Years
Min: -2.89 Med: -2.6 Max: -2.06
Current: -2.47
During the past 13 years, the highest Beneish M-Score of PepsiCo was -2.06. The lowest was -2.89. And the median was -2.60.
PepsiCo Beneish M-Score Related Terms
PepsiCo Beneish M-Score Historical Data
* Premium members only.
The historical data trend for PepsiCo's Beneish M-Score 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.
XTER:PEP vs MNST, KO, KDP: Beneish M-Score Comparison
For the Beverages - Non-Alcoholic subindustry, PepsiCo's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, PepsiCo's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where PepsiCo's Beneish M-Score falls into.
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.
The M-Score Variables:
The M-score of PepsiCo for today is based on a combination of the following eight different indices:
M
=
-4.84
+
0.92 * DSRI
+
0.528 * GMI
+
0.404 * AQI
+
0.892 * SGI
+
0.115 * DEPI
=
-4.84
+
0.92 * 1.093
+
0.528 * 1.0121
+
0.404 * 0.9718
+
0.892 * 0.9642
+
0.115 * 0.9781
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 0.9618
+
4.679 * -0.019874
-
0.327 * 0.9989
=
-2.52
* 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.
Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.
DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.
DEPI
=
(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))
/
(Depreciation_t / (Depreciaton_t + PPE_t))
=
(3605.05 / (3605.05 + 26097.025))
/
(3652.711 / (3652.711 + 25783.055))
=
0.121374
/
0.124091
=
0.9781
Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.
6. SGAI = Sales, General and Administrative expenses Index
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
TATA
=
(IncomefromContinuingOperations_t
-
CashFlowsfromOperations_t)
/
TotalAssets_t
=
(NetIncome_t - NonOperatingIncome_t
-
CashFlowsfromOperations_t)
/
TotalAssets_t
=
(7494.792 - -1808.496
-
11205.358)
/
95708.79
=
-0.019874
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
PepsiCo has a M-score of -2.52 suggests that the company is unlikely to be a manipulator.
PepsiCo (XTER:PEP) has a Beneish M-Score of -2.47 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on PepsiCo and its competitors. According to the industry distribution chart, PepsiCo ranks #64 out of 109 companies in the Beverages - Non-Alcoholic industry, placing it in the top 58.7%.
Is PepsiCo's Beneish M-Score too high?
PepsiCo's current Beneish M-Score is -2.47. Based on the distribution chart, PepsiCo ranks #64 out of 109 companies in the Beverages - Non-Alcoholic industry, which is below the industry midpoint. Overall, PepsiCo has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PepsiCo's Beneish M-Score compare to MNST and KO?
According to the Beverages - Non-Alcoholic industry distribution chart, PepsiCo ranks #64 out of 109 companies for Beneish M-Score. This places PepsiCo in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Beverages - Non-Alcoholic company?
A good Beneish M-Score depends on the Beverages - Non-Alcoholic industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on PepsiCo and its competitors. PepsiCo's current Beneish M-Score is -2.47. 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 (XTER:PEP) is currently considered Modestly Undervalued. The stock's GF Value™ is €151.19, compared to a current price of €124.24 — trading 17.8% below its estimated fair value. The current Beneish M-Score is -2.47. PepsiCo's overall GF Score™ is 86/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For PepsiCo (XTER:PEP), the current Beneish M-Score is -2.47 as of Jun. 24, 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 (XTER:PEP) Overvalued in 2026?
Based on GuruFocus' analysis, PepsiCo stock appears to be undervalued.
The current stock price of €124.24 is trading 17.8% below its estimated GF Value™ of €151.19.
GuruFocus considers PepsiCo to be Modestly Undervalued.
Key valuation signals for XTER:PEP:
Beneish M-Score: -2.47
GF Value™: €151.19 vs. price of €124.24 (17.8% below fair value)
No single metric tells the full story. See the XTER: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.
86GF Score
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