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PepsiCo PEP Significant unobservable input used in level 3 fair value measurement - Other AFS, discount rate assumption

Significant unobservable input used in level 3 fair value measurement - Other AFS, discount rate assumption at other companies

Aflac logo
AflacAFL
7.3%0.0pp
Raymond James Financial logo
Raymond James FinancialRJF
1%0.0pp
Raymond James Financial logo
Raymond James FinancialRJF
15.3%+0.8pp
Lennar logo
LennarLEN
0.3
Apollo Global Management logo
Apollo Global ManagementAPO
$0.24
Lennar logo
LennarLEN
$178.7M+27.0%

Other financials

Income statement

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Revenue$19.4B+8.5%
Gross profit$10.7B+7.4%
Operating income$3.2B+24.4%
Net income$2.3B+26.9%
EPS (diluted)$1.70+27.8%

Balance sheet

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Cash & equivalents$10.6B+26.8%
Total debt$52.7B+8.7%
Total equity$21.4B+16.3%
Total assets$110.65B+8.8%

Cash flow

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Operating cash flow$41.0M+104%
CapEx$447.0M-25.9%
Free cash flow-$406.0M+74.2%

Valuation

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Market cap$194.11B+3.2%
Enterprise value$236.29B+3.5%
P/E22.2×+2.2×
P/S0.0×

Profitability

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Gross margin54.1%-0.7pp
Operating margin12.7%-1.2pp
Net margin9.1%-1.1pp

Returns & leverage

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Return on equity43.9%-6.1pp
Debt / equity2.5×-0.2×
Current ratio0.9×+0.1×

Where this comes from

Reported directly by PepsiCo in its filing.

Tagged under the XBRL concept pep:SignificantUnobservableInputUsedInLevel3FairValueMeasurementOtherAFSDiscountRateAssumption.

The official record: PepsiCo’s 10-K, filed February 3, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is PepsiCo's significant unobservable input used in level 3 fair value measurement - other AFS, discount rate assumption?
PepsiCo (PEP) reported significant unobservable input used in level 3 fair value measurement - other AFS, discount rate assumption of 8.3% in Q4 2024.
What does significant unobservable input used in level 3 fair value measurement - other AFS, discount rate assumption mean?
The interest rate used to estimate the value of hard-to-price assets or liabilities.
How do you interpret significant unobservable input used in level 3 fair value measurement - other AFS, discount rate assumption?
Changes in this rate reflect management's assessment of risk and market conditions for specific, illiquid assets; higher rates decrease the present value of assets.
How does significant unobservable input used in level 3 fair value measurement - other AFS, discount rate assumption compare across companies?
This is a highly technical valuation input; peer comparisons focus on the consistency of these assumptions relative to market risk premiums.