PepsiCo Inc., FCFF calculation

US$ in millions

12 months ended:	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020	Dec 28, 2019
Net income attributable to PepsiCo	9,074)	8,910)	7,618)	7,120)	7,314)
Net income attributable to noncontrolling interests	81)	68)	61)	55)	39)
Net noncash charges	4,624)	2,721)	3,219)	3,741)	2,775)
Change in assets and liabilities	(337)	(888)	718)	(303)	(479)
Net cash provided by operating activities	13,442)	10,811)	11,616)	10,613)	9,649)
Interest paid, net of tax¹	1,124)	875)	926)	914)	850)
Capital spending	(5,518)	(5,207)	(4,625)	(4,240)	(4,232)
Sales of property, plant and equipment	198)	251)	166)	55)	170)
Free cash flow to the firm (FCFF)	9,246)	6,730)	8,083)	7,342)	6,437)

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the PepsiCo Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	PepsiCo Inc. FCFF decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

PepsiCo Inc., interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020	Dec 28, 2019
Effective Income Tax Rate (EITR)
EITR¹	19.80%	16.10%	21.80%	20.90%	21.00%
Interest Paid, Net of Tax
Interest paid, before tax	1,401)	1,043)	1,184)	1,156)	1,076)
Less: Interest paid, tax²	277)	168)	258)	242)	226)
Interest paid, net of tax	1,124)	875)	926)	914)	850)

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

¹ See details »

² 2023 Calculation
Interest paid, tax = Interest paid × EITR
= 1,401 × 19.80% = 277

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PepsiCo Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	249,254)
Free cash flow to the firm (FCFF)	9,246)
Valuation Ratio
EV/FCFF	26.96
Benchmarks
EV/FCFF, Competitors¹
Altria Group Inc.	11.82
Coca-Cola Co.	27.26
Philip Morris International Inc.	27.79
EV/FCFF, Sector
Food, Beverage & Tobacco	23.39
EV/FCFF, Industry
Consumer Staples	35.59

Based on: 10-K (reporting date: 2023-12-30).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

PepsiCo Inc., historical EV/FCFF calculation, comparison to benchmarks

	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020	Dec 28, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	264,687)	271,808)	267,386)	220,903)	229,939)
Free cash flow to the firm (FCFF)²	9,246)	6,730)	8,083)	7,342)	6,437)
Valuation Ratio
EV/FCFF³	28.63	40.39	33.08	30.09	35.72
Benchmarks
EV/FCFF, Competitors⁴
Altria Group Inc.	9.55	11.86	13.00	11.79	12.41
Coca-Cola Co.	26.54	27.95	25.28	26.04	28.08
Philip Morris International Inc.	20.71	19.53	16.35	16.31	16.47
EV/FCFF, Sector
Food, Beverage & Tobacco	21.39	23.90	21.47	20.59	22.56
EV/FCFF, Industry
Consumer Staples	27.85	27.96	19.75	21.80	22.08

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

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² See details »

³ 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 264,687 ÷ 9,246 = 28.63

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	PepsiCo Inc. EV/FCFF ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

PepsiCo Inc. (NASDAQ:PEP)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical