GURUFOCUS.COM » STOCK LIST » USA » NAS » PepsiCo Inc (NAS:PEP) » Definitions » GF Value Rank
Switch to:

PepsiCo GF Value Rank

: 5 (As of Today)
View and export this data going back to 1919. Start your Free Trial

PepsiCo has the GF Value Rank of 5.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.


Competitive Comparison

For the Beverages - Non-Alcoholic subindustry, PepsiCo's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank Distribution

For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, PepsiCo's GF Value Rank distribution charts can be found below:

* The bar in red indicates where PepsiCo's GF Value Rank falls into.



PepsiCo GF Value Rank Related Terms

Thank you for viewing the detailed overview of PepsiCo's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


PepsiCo Business Description

PepsiCo logo
Address
700 Anderson Hill Road, Purchase, NY, USA, 10577
PepsiCo is one of the largest food and beverage companies globally. It makes, markets, and sells a slew of brands across the beverage and snack categories, including Pepsi, Mountain Dew, Gatorade, Doritos, Lays, and Ruffles. The firm uses a largely integrated go-to-market model, though it does leverage third-party bottlers, contract manufacturers, and distributors in certain markets. In addition to company-owned trademarks, Pepsi manufactures and distributes other brands through partnerships and joint ventures with companies such as Starbucks. The firm segments its operations into five primary geographies, with North America (comprising Frito-Lay North America, Quaker Foods North America, and North America beverages) constituting over 60% of consolidated revenue.
Executives
Krishnan Ramkumar officer: CEO Intl Beverages & CCO TRACTOR SUPPLY 5401 VIRGINIA WAY BRENTWOOD TN 37027
Cooper Edith W director C/O ETSY, INC. 117 ADAMS STREET BROOKLYN NY 11249
Flavell David officer: EVP, Gen Counsel & Corp Sec PEPSICO, INC., 700 ANDERSON HILL ROAD PURCHASE NY 10577
Lewis Dave J director PEPSICO, INC., 700 ANDERSON HILL ROAD PURCHASE NY 10577
Agbaje Segun director PEPSICO, INC., 700 ANDERSON HILL ROAD PURCHASE NY 10577
Schellekens Ronald officer: EVP & Chief HR Officer PEPSICO, INC., 700 ANDERSON HILL ROAD PURCHASE NY 10577
Willemsen Eugene officer: CEO, AMESA PEPSICO, INC., 700 ANDERSON HILL ROAD PURCHASE NY 10577
Santilli Paula officer: CEO, Latin America PEPSICO, INC., 700 ANDERSON HILL ROAD PURCHASE NY 10577
Williams Steven C officer: CEO, PFNA PEPSICO, INC., 700 ANDERSON HILL ROAD PURCHASE NY 10577
Gass Michelle director 2401 UTAH AVE. S., SUITE 800 SEATTLE WA 98134
Yawman David officer: EVP Gov Affairs, GC & Corp Sec PEPSICO, INC., 700 ANDERSON HILL ROAD PURCHASE NY 10577
Spanos Mike officer: Interim head of AMENA PEPSICO, INC., 700 ANDERSON HILL ROAD PURCHASE NY 10577
Fattori Ruth A officer: EVP, HR & Chief HR Officer 1303 EAST ALGONQUIN ROAD SCHAUMBURG IL 60196
Popovici Silviu officer: President, ESSA PEPSICO, INC. 700 ANDERSON HILL ROAD PURCHASE NY 10577
Walker Darren director PEPSICO, INC., 700 ANDERSON HILL ROAD PURCHASE NY 10577

PepsiCo Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)