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To value the company by the comparable method, you have selected a peer group (including Coca-Cola, Keurig Dr. Pepper, Molson Coors Beverage, and Monster Beverage).
To value the company by the comparable method, you have selected a peer group (including Coca-Cola, Keurig Dr. Pepper, Molson Coors Beverage, and Monster Beverage). Based on each EV/EBITDA over the last 4 quarters, you've calculated the median EV/EBITDA of 21.5. Let's estimate Pepsico's share price per share for the next quarter, using the EV/EBITDA multiple method and financial values summarized in the below table. Assume that the estimated EBITDA for the next quarter is 2,879, Stock Price (Today) # of Shares Outstanding Market Value ($ M) Enterprise Value ($ M) PepsiCo 138.6 1,384.6 191,905.6 214,616.0 PepsiCo Current Quarter ($ M) Cash & Equivalent 9,123 Preferred & Others 96 Total Debt 44,978 1. Calculate the estimated enterprise value. 2. Calculate the estimated market value. 3. Calculate the estimated share price per share. 4. Do you think the current stock price of PepsiCo is overpriced? If yes and explain why (if not, explain why not)
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