Coca-Cola Co (KO) is overvalued and PepsiCo Inc (PEP) is slightly overvalued.
Both trade above our estimate of their intrinsic value. PEP is the closer of the two: -13%, against -80% for KO.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 7.4% (average of 3 methods) values the shares at $49.15; the price of $88.61 is 80% above that value, and 82% of that value comes from beyond year five.
Leak Score 65/100 on 10 of 12 signals
Discounting its cash flows at 7.2% (average of 3 methods) values the shares at $115.59; the price of $131.19 is 13% above that value, and 82% of that value comes from beyond year five.
Leak Score 68/100 on 10 of 12 signals
| Metric | KO | PEP |
|---|---|---|
| Verdict | Overvalued | Slightly overvalued |
| Price | $88.61 | $131.19 |
| Intrinsic value | $49.15 | $115.59 |
| Margin of safety | -80% | -13% |
| Leak Score | 65/100 (10/12) | 68/100 (10/12) |
| Market cap | $381.2B | $179.1B |
| Revenue growth, 5 years | 7.9% | 5.9% |
| Operating margin | 31.9% | 15.6% |
| Net margin | 28.3% | 10.8% |
| Return on equity | 44.2% | 51.6% |
| Debt to equity | 1.20 | 2.41 |
| P/E | 26.7x | 17.2x |
| Forward P/E | 25.1x | 14.6x |
| P/B | 10.6x | 8.1x |
| Dividend yield | 2.5% | 4.5% |