This article originally appeared on The DIV-Net December 29, 2008.
Linked here is a detailed quantitative analysis of PepsiCo, Inc. (PEP). Below are some highlights from the above linked analysis:
Company Description: PepsiCo, Inc. (PepsiCo) is a global snack and beverage company. The Company manufactures, markets and sells a range of salty, convenient, sweet and grain-based snacks, carbonated and non-carbonated beverages and foods.
Fair Value: I consider four calculations of fair value, see page 2 of the linked PDF for a detailed description:
- Avg. High Yield Price
- 20-Year DCF Price
- Avg. P/E Price
- Graham Number
PEP is trading at a discount to 1.), 2.) and 3.) above. If I exclude the high and low valuations and average the remaining two, PEP is trading at a 21.9% discount. PEP earned a Star in this section since it is trading at a fair value.
Dividend Analytical Data: In this section I consider five factors, see page 2 of the linked PDF for a detailed description:
- Rolling 4-yr Div. > 15%
- Dividend Growth Rate
- Years of Div. Growth
- 1-Yr. > 5-Yr Growth
- Payout 15% of avg.
PEP earned one Star in this section for 3.) above. PEP has paid a cash dividend to shareholders every year since 1952 and has increased its dividend payments for 36 consecutive years.
Dividend Income vs.
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