PEP stock verdict - Avoid
PEP
Pepsico, Inc.
AVOIDConsumer Defensive
$136.64
Overvalued (≥ exit)
$136.64
Heavy$64.70Buy$86.27Fair$107.84Exit$129.41
FUNDAMENTAL64
TECHNICAL12
TRUST SCORE
100High
confidence in this read — data completeness, earnings quality & coverage
Downtrend · EMA20 138.24 · EMA50 142.3 · EMA200 147.99 · RSI 44.3 · MACD below signal
PROS
- Strong return on equity of 48.1% (TTM)
- TTM EPS grew 39.0% year-over-year
CONS
- Trades above the model's exit level ($129.41) — overvalued on this framework
- High leverage — debt-to-equity of 2.41
- Price is in a downtrend — below key moving averages
✳ Pros and cons are machine-generated from the latest fundamentals and technicals.
EARNINGS QUALITY · we check the accounting so you don't have to
✓Operating cash flow is 147% of net income — profit is backed by real cash
✓Low accruals — reported profit tracks the cash actually generated
✓Receivables growing in line with sales
Analysis as of 2026-07-27 · price live, fundamentals from latest filings
FAQ
Why is PEP rated Avoid?
PEP (Pepsico, Inc.) is rated Avoid because the model combines fundamentals, price action, and earnings-quality checks. The current signal is Overvalued (≥ exit). Strong return on equity of 48.1% (TTM) and TTM EPS grew 39.0% year-over-year
Is PEP overvalued right now?
PEP is trading at $136.64 versus an estimated fair value of $107.84. That puts the stock in avoid territory on this framework. Trades above the model's exit level ($129.41) — overvalued on this framework and High leverage — debt-to-equity of 2.41
What should I watch before acting on PEP?
Watch the trust score of 100, the earnings-quality checks, and any red flags. Trades above the model's exit level ($129.41) — overvalued on this framework and High leverage — debt-to-equity of 2.41