Comments on: Stock Analysis: PepsiCo, Inc. (PEP) *

By: Dividends4Life

Dividends4Life — Mon, 02 Jun 2008 11:08:00 +0000

Anon: A management can be stretched too thin and a company can expand beyond their core competency. Hopefully, that is not the case with PEP.

You are correct when a company is running analysis the DCF is its cost of capital as determined by its debt and equity structure. Current interest rates should have a minimal influence on the COC since it is based on a long period of time 20-50 years. I have found the market tends to discount stocks at a rate around 15%.

Best Wishes,
D4L

By: Anonymous

Anonymous — Mon, 02 Jun 2008 10:07:00 +0000

I like Pepsi, though I wonder they have too many businesses to take care of spreading themselves too thin. I looked at your detailed report and I wonder how do you come up with the discount rate to be used in DCF analysis. Is this not the same as cost of capital? Pepsi is a highly rated financially stable company and I wonder whether the discount rate should be some where around 10% especially with interest rates so low.

By: Dividend Growth Investor

Dividend Growth Investor — Sun, 01 Jun 2008 17:19:00 +0000

[...]Dividends4Life presented Stock Analysis: PepsiCo, Inc. (PEP). I myself am a fan of the company. You could read about my opinion here and here[...]

By: Dividends4Life

Dividends4Life — Thu, 29 May 2008 02:22:00 +0000

Div Guy: The more I look at it the more I like it. I may end up buying some next month.

Best Wishes,
D4L

By: Div Guy

Div Guy — Thu, 29 May 2008 01:07:00 +0000

I am a big fan of PEP and just purshased some of the stock for my kids.