Valuation Research Paper Example | Topics and Well Written Essays - 3250 words

Valuation - Research Paper Example Coca-Cola Corporation has introduced more than 500 brands and some of the renowned brands are Coke, Diet Coke, Caffeine Free Coca-Cola and Coca-Cola Zero. The company has its presence in more than 200 countries of the world and is more renowned as Coke. More than 1.7 billion people are served every day with the products of Coca-Cola.1 PepsiCo, Inc. (or â€Å"PEP)† is another American based multinational enterprise that operates in the food and beverage industry. Headquarter of PEP is in Purchase, New York. The company was formed in 1965 and since that time it has expanded its brands to more than 200 countries. PEP is the fifth largest food and beverage company in the world in terms of total revenue however in the North American region it is the largest company. There are more than 285 thousand employees working for PepsiCo around the world.2 Food and beverage industry includes food production, distribution, retailing and catering of food and beverages. The total value of this industry in the year 2008 was $5.7 trillion. The growth rate of the industry is expected to increase at a CAGR of 3.5% and it is estimated that the total value of this industry would reach up to $7 trillion by the end of 2014.3 As other industry suffered because of financial crisis, food and beverage industry was also one of the victims of recession. The industry was affected and companies in the industry had to face different problems like increase in food prices, increase in transportation cost and a reduction in consumer spending thus, reducing the profitability of the companies in the industry. PepsiCo is the fifth most important company in this industry with offering different products like snacks, carbonated and non-carbonated drinks. The total revenue of PepsiCo is $43.3 billion USD with a net profit of $5.1 billion. Coca-Cola Corporation is considered to be the seventh most important company in the industry with