CorporateMetrics Methodology Application for the Risk Analysis in PepsiCo Company

Yini Chen

Master's thesis

Abstract:

The aim of this thesis is to predict the total operating income for PepsiCo in 2021 by analysing the influence of potential changes in Sales and Aluminum price to the Earnings of PepsiCo with the application of CorporateMetrics Methodology and estimate the EAR for the corporate in 2021. For Chapter 2, which is the paragraph that focus on the description of CorporateMetric Methodology introducing the definition of CorporateMetrics, the procedures of applying CorporateMetrics and the comparison of CorporateMetrics and RiskMetrics. In addition, there are the introduction of financial modelling methodology. For Chapter 3, it is the part that focus on the information introduction of PepsiCo company, including company overview and operation, develop history, market risks of company, and financial performance summary. For Chapter 4 and Chapter 5, which are the most significant part of the thesis. Chapter 4 describes detail procedures of how the CorporateMetrics applied including the data collection and preparation, market variables estimation and prediction, and corporate financial metrics estimation for 2021. Chapter 5 presents the results from the several calculations in Chapter 4 and the results interpretations. For Chapter 6, which is the conclusion for the thesis, summarizing the whole information that the previous chapters have presented.

Abstract:

The aim of this thesis is to predict the total operating income for PepsiCo in 2021 by analysing the influence of potential changes in Sales and Aluminum price to the Earnings of PepsiCo with the application of CorporateMetrics Methodology and estimate the EAR for the corporate in 2021. For Chapter 2, which is the paragraph that focus on the description of CorporateMetric Methodology introducing the definition of CorporateMetrics, the procedures of applying CorporateMetrics and the comparison of CorporateMetrics and RiskMetrics. In addition, there are the introduction of financial modelling methodology. For Chapter 3, it is the part that focus on the information introduction of PepsiCo company, including company overview and operation, develop history, market risks of company, and financial performance summary. For Chapter 4 and Chapter 5, which are the most significant part of the thesis. Chapter 4 describes detail procedures of how the CorporateMetrics applied including the data collection and preparation, market variables estimation and prediction, and corporate financial metrics estimation for 2021. Chapter 5 presents the results from the several calculations in Chapter 4 and the results interpretations. For Chapter 6, which is the conclusion for the thesis, summarizing the whole information that the previous chapters have presented.

Keywords

CorporateMetrics, Applied Corporate Finance, Risk Analysis, Market Risks Analysis

Keywords

CorporateMetrics, Applied Corporate Finance, Risk Analysis, Market Risks Analysis

Language used: English

Date on which the thesis was submitted / produced: 22. 4. 2022

Thesis defence

• Date of defence: 23. 5. 2022
• Supervisor: Miroslav Čulík
• Reader: Petr Gurný

VSB – Technical University of Ostrava

Ekonomická fakulta

Master programme:
Finance