u/ReviewerMaMan ·
Reddit — r/ValueInvesting
· August 16, 2026 at 07:46
· ⬆ 15 pts
· 💬 23 comments
| View on Reddit ↗
AI Summary
Summary
Post argues PEP is undervalued at ~18.5 PE, offering a 4.12% dividend yield, trading ~20% below all-time highs, and ~30% cheaper than KO.
Author sees 20-25% upside from current price, noting the dividend yield is strong vs SCHD and SGOV, while acknowledging South America sales risks.
Quality: Light but coherent value DD; mostly valuation and dividend comparisons, lacks deeper fundamental and risk analysis.
Score15
Comments23
Upvote %71%
▶ Full Post Text
At the current levels of 18.5 PE the company is projected to pay its investors about 4.12% in dividends.
Compared to SCHD 3.13%, that is great!
At current prices the stock is almost 20% off of all times high,
And trades at a 30% discount compared to its duo in the duopoly - KO.
The dividend alone is better than current sgov at 3.79% yield a year,
While i am well aware of the news lately - projected to sell less in South America and has a few more matters that might interfere with the company’s revenue,
It cannot be ignored that this stock usually pays 3-3.2% of dividends, only because of the PE.
From current prices, the data suggests about 20-25% upside.
I’d love it if y’all help me improve my thesis (or say that it is just completely wrong and suggested other explanations).
Also, English is a second language for me and i’d love you to correct me if I didn’t use the right terms.
Thanks a lot for reading.
I do not recommend to invest in this stock and i do not call anyone to take action because of this post!!!
Always make your research, and i probably missed a lot of information. 🧐🤔
PEP trades at 18.5 PE, yields ~4.12%, sits ~20% below highs, and is ~30% cheaper than KO with estimated 20-25% upside. Attractive dividend yield and relative valuation could draw income and value investors, supporting a price recovery. Long PEP as a value/dividend play if South America and revenue headwinds do not materially worsen. South America revenue weakness, other operational issues, potential dividend pressure, and broader consumer slowdown.
This Reddit post, published August 16, 2026,
features u/ReviewerMaMan
discussing PEP.
1 trade idea extracted by AI with direction and confidence scoring.