PEP FCF Yield Analysis
Updated 825h ago·SEC filings & market data
Key Takeaway
PEP's current Free Cash Flow (FCF) Yield of 3.9% means that for every $100 invested in the stock, the company generates $3.90 in free cash flow annually — a measure of cash available after expenses and capital spending.
Sector Performance
46th percentilePEP
3.9%
Sector Median
4.2%
Sector Avg
9.2%
Prior Period
4.1%(Jul 2026)
Deep Analysis
PEP's current Free Cash Flow (FCF) Yield of 3.9% means that for every $100 invested in the stock, the company generates $3.90 in free cash flow annually — a measure of cash available after expenses and capital spending.
This yield sits just below the sector median of 4.2%, placing PEP in the 46th percentile among its sector peers, meaning roughly half of peers offer a higher yield. Trend data is limited: a year-over-year comparison is not available (N/A), but the quarter-over-quarter change of -4.9% shows that the yield has declined from 4.1% to 3.9% in the most recent period. The combination of a yield slightly below the sector median and a declining quarter-over-quarter trend suggests modest pressure on valuation or cash generation, but the gap is narrow. This metric neither strongly supports nor contradicts the overall NEUTRAL verdict — the yield is close to the peer average, and the single-period decline is too small to alter the balanced view.
Frequently Asked Questions
What does the FCF Yield tell investors about PEP?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
Who are PEP's closest peers by FCF Yield?
The closest peers by FCF Yield include: JACK (23.5%), BBWI (23.7%), YELP (25.7%), MET (27.9%), WIX (29.2%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
Master PEP's Valuation
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3.9%
Sector Median
4.2%
Sector Avg
9.2%
How PEP's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.