April 29, 2003 Recommendation: Purchase cd shares of PepsiCo stock at market order Industry: forage and Beverage Kristopher Cartagena kcart26@yahoo.com Dion Demetropoulos Ddeme829@aol.com Tenisha Martin tenishax@hotmail.com Share Data: Price - $42.65 Date April 25, 2003 ass Price - $50.65 52 Week Price Range - $53.23 - $34.00 trade Capitalization 74.5 zillion Shares Outstanding 1.72 billion Revenue 2002 $25.112 billion Stock Chart: Fundamentals: P/E 2002 22x P/E 2003 19x Earnings Per Share Estimate: EPS 2003E = $2.28 EPS 2003 Consensus = $2.20 EPS 2004E = $2.45 EPS 2004 Consensus = $2.44
MEMORANDUM TO: FROM: Student Managed Investment Fund St. Johns University Kristopher Cartagena Dion Demetropoulos Tenisha Martin April 29, 2003 ANALYSIS OF PEPSICO STOCK AS AN UNDERVALUED SECURITY
DATE: SUBJECT:
This is the research report that was put across on January 23, 2003 about PepsiCo stock and whether it should be incorporated in to the Student Managed Investment Fund. The analysis was done primarily finished secondary research. The analysis revealed that PepsiCos stock is currently undervalued at $42.65, as of April 25, 2003.
We utilise a relative valuation model, and refractory PepsiCos target price to be $50.65. In addition, we used a multi-stage dividend discount model, and determined the stocks integral value to be $56.83. PepsiCos current price of $42.65 is overturn than both our target price and its intrinsic value. This confirmed our doctrine that the stock was undervalued. We also analyzed the companys counselling strategies, financial data, products, performance in its markets, as well as other business indicators of the health of a company. After conducting a complete analysis of the stock, we recommended: 1. Purchase 400 shares of PepsiCo stock at market order 2. Incorporate PepsiCo stock into the Student Managed...If you need to get a full essay, order it on our website: Orderessay
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