Monster Beverage Corp (MNST) 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 MNST.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.2% (average of 3 methods) values the shares at $24.62; the price of $44.27 is 80% above that value, and 79% of that value comes from beyond year five.
Leak Score 60/100 on 8 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 | MNST | PEP |
|---|---|---|
| Verdict | Overvalued | Slightly overvalued |
| Price | $44.27 | $131.19 |
| Intrinsic value | $24.62 | $115.59 |
| Margin of safety | -80% | -13% |
| Leak Score | 60/100 (8/12) | 68/100 (10/12) |
| Market cap | $86.7B | $179.1B |
| Revenue growth, 5 years | 12.5% | 5.9% |
| Operating margin | 29.2% | 15.6% |
| Net margin | 23.1% | 10.8% |
| Return on equity | 25.7% | 51.6% |
| Debt to equity | 0.00 | 2.41 |
| P/E | 41.1x | 17.2x |
| Forward P/E | 33.8x | 14.6x |
| P/B | 9.3x | 8.1x |
| Dividend yield | — | 4.5% |