If you are wondering whether PepsiCo at around US$170.49 is offering fair value or a stretch price, starting with a clear look at the numbers can help you frame that question.
The stock has posted returns of 11.0% over the past 7 days, 24.4% over 30 days, 19.9% year to date, 22.6% over 1 year and 6.8% and 48.6% over 3 and 5 years respectively. This gives you a recent performance backdrop before you think about what you are paying today.
Recent news coverage around PepsiCo has focused on its position as a global consumer staples name and how investors often look at such companies when they are assessing brand strength, pricing power and resilience, all of which can influence what they are willing to pay. This context helps explain why…
