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Posted by
Two Blokes Tue at 7:45 PM -
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Stock
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Despite a defensive business model, PepsiCo's stock has declined 26% in the past year, underperforming broader markets and raising concerns about its future stability. PepsiCo's reliance on its snacking business, which generates most profits, is under pressure due to declining organic volumes and pricing power erosion. Valuation concerns arise as PepsiCo's enterprise value to free cash flow ratio is high, indicating the stock may not be the bargain it appears to be.