$PEP

Explicit claim • strong conviction • basis: fair value gap

So, PepsiCo is trading at $139 per share and I calculated its fair value at over $218. ... PepsiCo trading at a forward price to earnings of 16.2 hasn't been this cheap in a really long time.

Explicit claim • strong conviction • basis: multiple relative

And on top of this, the 10 and 5-year dividend caggers are sitting at about 6 to 7%. So a nice history of dividend growth. Keep in mind, this stock is a dividend king. Over 50 consecutive years of dividend increases. And at the exact same time, the stock is trading at a valuation level that is considerably below its historic averages. Look at the forward-looking non-GAAP valuation, sitting at 16.59. That's the PE multiple. It's about 25% lower than the historic average. If you just look at that PE multiple charted out over the last 5 years. They're now trading at their cheapest price in the last 5 years. At their cheapest price in the last 10 years.

Explicit claim • strong conviction • basis: multiple relative

Valuation is more attractive than it used to be. Yield is pretty much touching the 4% point versus a 5year of three. That is the main appeal here.

Implied claim • strong conviction • basis: drawdown discount

the stock is sitting almost 20% below its 52- week high right now. So, our mission for this analysis is to figure out if Wall Street is actually right to be panicking or if they are just completely delusional. Because every investor looking at the consumer staples space really has to answer this core question right now. Is this 20% draw down a warning sign that the consumer has just tapped out or is it like this rare mathematically driven opportunity to grab a certified dividend king on a massive discount?