A Financial Analysis and Valuation of PepsiCo

Jia Wei ()
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Jia Wei: Jiangsu University Jingjiang College, School of Finance and Economics

A chapter in Proceedings of the 2025 International Conference on Financial Risk and Investment Management (ICFRIM 2025), 2025, pp 859-867 from Springer

Abstract: Abstract The integration of environmental awareness into the food industry has created challenges and opportunities, particularly for multinational corporations like PepsiCo. This study examines PepsiCo’s strategies in market expansion, technological innovation, and financial management to understand its competitive position. Using Porter’s Five Forces and financial ratio analysis, the external and internal factors influencing PepsiCo’s operations are evaluated. Externally, PepsiCo’s global supply chain demonstrates strong bargaining power with suppliers, while customer loyalty remains low due to the fast-moving consumer goods nature of its products. The company faces significant competition from Coca-Cola, though PepsiCo’s diversified portfolio, including its successful Lay’s brand, strengthens its market presence. Internally, PepsiCo’s financial ratios reveal a stable revenue trajectory and effective inventory management, though liquidity challenges persist. Strong cash flow and long-term solvency highlight its resilience and capacity for expansion. This paper provides valuable insights into PepsiCo’s strategic planning, emphasizing its ability to adapt to market dynamics and maintain profitability. The findings offer lessons for the food industry and beyond, demonstrating how strategic innovation and comprehensive management can foster sustainable growth in a competitive global market.

Keywords: PepsiCo; Porter’s Five Forces; Financial Analysis; Food Industry; Sustainable Development (search for similar items in EconPapers)
Date: 2025
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DOI: 10.2991/978-94-6463-748-9_94

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