Coca-Cola or PepsiCo: which stock is cheaper in 2026?
As of October 5, 2026, Coca-Cola (KO) trades at 25.7× earnings (P/E) and PepsiCo (PEP) at 16.5×, according to Kaplio. The median across the 97 consumer staples companies above $2bn in Kaplio's universe is 20.6×. Kaplio's verdict: Coca-Cola, fairly priced; PepsiCo, cheap. Value range by multiples: $69–$93 for Coca-Cola and $158–$201 for PepsiCo. Against its own value range, PepsiCo is the cheaper of the two today.
According to the Kaplio Summary
The same verdict as each company's page: price range by multiples, the four lights, the expected return if consensus is right and what Buffett and Lynch would say today.
| Coca-Cola (KO) | PepsiCo (PEP) | |
|---|---|---|
| Summary valuation | fairly priced ($69–$93) | cheap ($158–$201) |
| The four lights | Valuation: P/E 25.7× (fairly priced) Business: ROIC 14 % (fair) Balance sheet: Net debt/EBITDA 2.0× (solid) Results: 8 of 8 (on track) | Valuation: P/E 16.5× (cheap) Business: ROIC 13 % (fair) Balance sheet: Net debt/EBITDA 2.6× (watch) Results: 7 of 8 (on track) |
| Expected return (per year) | +9.3 % a year (to 2028) | +15.5 % a year (to 2028) |
| Buffett method | quality 85 · would wait | quality 79 · would not approve |
| Lynch method | stalwart · would wait | slow grower · would wait |
Metrics side by side
| Metric | Coca-Cola (KO) | PepsiCo (PEP) |
|---|---|---|
| Overview | ||
| Market Cap | $369B | $172B |
| Price | $85.65 | $125.89 |
| Valuation | ||
| P/E | 25.7× | 16.5× |
| P/B | 10.3× | 7.8× |
| P/S | 7.4× | 1.8× |
| EV/EBITDA | 20.3× | 11.5× |
| FCF Yield | 3.8 % | 5.4 % |
| Dividend Yield | 2.5 % | 4.6 % |
| Profitability | ||
| ROIC | 14.0 % | 13.0 % |
| ROE | 43.0 % | 50.4 % |
| Gross Margin | 61.9 % | 54.0 % |
| Operating Margin | 29.6 % | 15.0 % |
| Net Margin | 28.6 % | 10.8 % |
| Growth | ||
| Revenue 5Y CAGR | 7.7 % | 5.9 % |
| EPS 5Y CAGR | 11.1 % | 3.2 % |
| FCF 5Y CAGR | -9.4 % | 3.8 % |
| Balance Sheet | ||
| Net Debt / EBITDA | 2.0× | 2.6× |
| Debt / Equity | 1.2× | 2.4× |
Trailing twelve months where available; otherwise the latest fiscal year. Growth: five-year compound annual rate.