A Financial Analysis and Valuation of Pepsi

PepsiCo Inc is one of the most famous beverage and food companies in the world, having several departments and a vast market around the world. This report will illustrate the company strategy by analyzing the financial reports and ratios of Pepsi. This essay contains four parts. The first parts will analyze the characteristics of the beverage and food industry to better understand the Pepsi’s industry development by using the Porter’s Five Forces Model, Value Chain Model and SWOT. The second part will focus on the financial reports of Pepsi, using common-size statements analysis and several financial ratios to tell the financial structure and condition of Pepsi, from which it may understand the future development directions and strategies of Pepsi. The third part will discuss the goodwill of this company to focus on the change of the strategy through the acts of acquisition. The last part will the revenue, and make a forecast of the revenue of this company to see the future development potential.