3-Year Backtest: Buy and Hold PEP (PepsiCo, Inc.)

This analysis evaluates a buy-and-hold strategy over the past 3 years, providing a historical perspective on PEP's performance from 2023-06-21 to 2026-06-18.

Note: This simulation uses adjusted close prices, meaning all historical prices have been retroactively adjusted for splits and dividends. To achieve similar results in practice, you would need to reinvest all dividends automatically as they are paid.

Performance Overview

Starting with an initial capital of $10,000.00, we purchased shares of PEP on 2023-06-21, at a price of $167.00 per share (adjusted for splits and dividends). No trading, no adjustments — just a simple buy-and-hold approach.

We held the position continuously through every market twist and turn, never selling. As of 2026-06-18, the price of PEP had risen to $142.02. While we didn't sell, we can still assess the performance by calculating the current value of the investment: $8,504.09 — a total gain of -14.96%.

This translates into an annualized return of -5.27% over the entire period. The return is negative, indicating the strategy or asset declined in value during the period. This could reflect poor timing, asset underperformance, or unfavorable market conditions.

Drawdown and Risk

The maximum drawdown recorded during this period was 29.17%. This drawdown began after a peak price of $172.56 on 2023-07-26, and reached its lowest point on 2025-05-14 when the price fell to $122.22. The drawdown lasted for 658 days.

The drawdown was relatively small, suggesting the asset or strategy maintained reasonable stability through market fluctuations. The maximum drawdown lasted over a year, indicating an extended period of underperformance. This duration is typical of major corrections or bear markets.

The Calmar Ratio — annualized return divided by maximum drawdown — was -0.18, reflecting the tradeoff between return and volatility.

This ratio reflects negative or unstable performance — the strategy either lost value or experienced extreme drawdowns.