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Barchart
Mark R. Hake, CFA

PepsiCo's Huge 36% Gain in Q3 Free Cash Flow Shows PEP Stock Is Cheap

PepsiCo (PEP) showed that its results for Q3 on Oct. 10 had a massive 36% gain in its free cash flow (FCF). As a result, value buyers are looking carefully at PEP stock. One major reason is it is trading below its historical price-to-earnings (P/E) and dividend yield metrics.

The company said its "organic" revenue growth (i.e., excluding currency and acquisitions/divestiture effects) was up 8.8% YoY. Management also said it expects to see a 10% YoY organic 2023 gain.

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