Munger Mode rating: 3 out of 5 — Hold. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
Current Price: ~$159 per share Charlie and I have spent a good deal of time thinking about PepsiCo over the years. It is unmistakably a wonderful business in the classical sense — durable brands, global distribution, a direct-store-delivery network in salty snacks that borders on unassailable, and a fifty-four-year record of rising dividends that puts it in rare company. Were Phil Fisher with us, he would tip his hat at the Frito-Lay franchise. Charlie would grumble that the beverage side is a harder game than the market gives it credit for, and he would be right. At roughly $159 a share against a 2025 free cash flow base of about $7.7 billion on ~1.37 billion diluted shares, we are paying around 28 times free cash flow and roughly 24 times forward earnings for a business the company itself expects to grow organic revenue 2–4% and earnings per share 4–6% in 2026.
Recent filings analysed: 8-K (2026-05-22), 8-K (2026-05-08), 8-K (2026-04-16), 10-Q (2026-04-16).
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