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The consensus of 21 leading analysts reporting to Capital IQ forecast PepsiCo’s long-term earnings growth at 6.8%. PepsiCo has medium long-term debt at 50% of capital. PepsiCo is currently trading at a P/E of 14.4, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, PepsiCo’s True Worth valuation would be $86.68 at the end of 2017, which would be a 8.4% annual rate of return from the current price, including assumed dividends.
