PepsiCo

Methodology

PepsiCo's diversified snacks and beverages portfolio generates highly predictable earnings from established brands like Frito-Lay, Gatorade, and Quaker. Snacks provide more stability than carbonated soft drinks. The calculation works well for this defensive consumer staples leader with clear category positions and pricing power.

Methodology

PepsiCo typically trades at premium PEG ratios reflecting defensive characteristics, snacks portfolio strength, and consistent execution despite modest growth. While expensive versus typical consumer staples, the quality and resilience justify valuations. Compare to Coca-Cola and PepsiCo's historical range rather than absolute thresholds.

Methodology

PepsiCo offers a substantial dividend with decades of consecutive increases, making it a dividend aristocrat and making PEGY analysis essential. The dividend provides meaningful income alongside steady earnings growth. For this defensive blue chip, dividend reliability and growth matter as much as earnings expansion in attracting long-term investors.