PepsiCo, Inc. (PEP) is a publicly traded company in the Consumer Defensive — Beverages - Non-Alcoholic industry listed on NASDAQ. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
PepsiCo, Inc. is a global enterprise that creates, promotes, and supplies a diverse array of drinks and easy-to-prepare food items across the globe. Its operations are structured into seven primary divisions: Frito-Lay North America, Quaker Foods North America, PepsiCo Beverages North America, Latin America, Europe, Africa/Middle East/South Asia, and the Asia Pacific, Australia, New Zealand, and China Region.
Is PepsiCo, Inc. stock overvalued or undervalued in 2026?
PepsiCo, Inc. (PEP) trades at 17.3× earnings (P/E), below the median of the 93 consumer staples companies over $2bn in Kaplio's universe. At the decade median (26.2×) $209 (+52 %); at its sector median (21.9×) $175 (+27 %).
Kaplio overview: PepsiCo, Inc.
Market cap $187B · 52 weeks $124 – $170 (18 % below the high) · P/E 17.3× · 2027 est. P/E 16.0× · Dividend 4.2 % · ≥ 11 years rising · Next earnings February 2, 2027 · expected EPS $2.24 · Closing price, Oct 30 · accounts published Oct 8.
- Valuation: TTM P/E 17.3× (cheap).
- Business: ROIC 14 % (fair).
- Balance sheet: Net debt/EBITDA 2.6× (watch).
- Earnings: 7 of 8 (on track).
What would it be worth at its usual multiples?
At the decade median (26.2×) $209 (+52 %); at its sector median (21.9×) $175 (+27 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.
What matters in consumer staples: 5 of 8 pass
- 10y EPS growth 4.8 %, fails.
- Payout Ratio 92.7 %, fails.
- Net debt / EBITDA 2.6×, borderline.
- Gross margin (stable 5y) 54.1 %, passes.
- Stable ROE / ROIC 50.6 %, passes.
- FCF / Net Income 93.1 %, passes, near the threshold.
- 10y dividend growth 7.2 %, passes.
- P/E vs own 10y history 17.3×, passes.
Against its peers (reference peers) — PepsiCo, Inc.: P/E 17.2×; EV/EBITDA 11.8×; ROIC 13.9 %; $187B. Monster Beverage Corporation (P/E 43.6×; EV/EBITDA 31.2×; ROIC 21.3 %; $92.7B), The Coca-Cola Company (P/E 27.7×; EV/EBITDA 21.2×; ROIC 14.3 %; $405B), Coca-Cola Europacific Partners PLC (P/E 22.8×; EV/EBITDA 14.4×; ROIC 8.9 %; $50.2B).
Expensive or cheap against its last ten years?
P/E at each close: today 17.2× · median 26.2× · minimum 13.7× · maximum 35.6× · cheap below 24.6× · expensive above 30.8×. It has been cheaper than today only 12% of the time over its last ten years.
Dividend
tight · Yield 4.2 % ($5.59 per share in 2025) · Years raising it ≥ 11 · 5-year growth +7 % a year · Free cash flow coverage 1.1× · With $1,000 invested today you'd collect $42.30 a year ($3.52 a month).
Kaplio's reading: PepsiCo, Inc.
Updated on October 24, 2026 · accounts published on October 8, 2026
Reading of October 23, 2026: A highly profitable consumer staple whose earnings growth has slowed
Pepsi trades at a P/E of 17.1× over the last 12 months, 35 % below its ten-year median of 26.2× and 25 % below its sector median.
- Is Pepsi expensive or cheap? Its P/E has been lower only 11 % of the time in the last decade and sits 25 % below the sector median.
- How is the business doing? Operating margin of 15.3 % over the last 12 months tops its 2014-2025 average of 14.5 %, but EPS fell 13.7 %.
- How strong is the balance sheet? Net debt equals 22 % of the share price, and the dividend payout reached 93 % of fiscal 2025 earnings.
- What to expect from the next earnings? Next results on February 2, 2027, with EPS of $2.24 expected; the 2026 EPS consensus fell 1.9 % in 30 days.
- Is it as stable as the sector promises? It passes on margins, cash and dividend growth, but EPS grew 4.8 % a year over 2015-2025, below the 6 % bar.
Is Pepsi expensive or cheap?
Over the last 12 months Pepsi trades at a P/E of 17.1×, 35 % below its ten-year median of 26.2×. In the last decade it has traded at a lower P/E only 11 % of the time, within a range of 13.7× to 35.6×. Against its peers it also looks cheap: the median consumer defensive company trades at 22.8×, which puts Pepsi 25 % below its sector. An EV/EBITDA of 12.0× and a free cash flow yield of 4.2 % point the same way. The discount has a cause the market can see: the shares are down 8 % over 12 months and sit 19 % below their 52-week high of $170.49.
How is the business doing?
Revenue grew 2.3 % over the last 12 months while EPS fell 13.7 %, so sales are holding up better than earnings per share. Margins are steadier: the operating margin of 15.3 % over the last 12 months is above both fiscal 2025 (14.4 %) and the 2014-2025 average of 14.5 %. Returns on capital remain the strong point. ROIC of 13.9 % over the last 12 months beats the sector median of 9.0 % by 4.9 points, and it has stayed above 10 % in 9 of the last 10 fiscal years, with 2017 the weakest at 8.1 %.
How strong is the balance sheet?
Debt is the heavier side of the ledger. Net debt was $30.35 per share in fiscal 2025, equal to 22 % of the current share price and 2.6× EBITDA. A current ratio of 0.94 over the last 12 months means short-term liabilities slightly exceed short-term assets, although the Altman Z-score of 3.5 stays in the safe zone. A debt/equity ratio of 2.33 also helps explain an ROE of 51 % and a P/B of 8.5×. The dividend yields 4.2 % and has risen for 11 consecutive fiscal years, but a 93 % payout in fiscal 2025 leaves little room if profits keep falling.
What to expect from the next earnings?
Pepsi reports next on February 2, 2027, and analysts expect EPS of $2.24 for the quarter. On October 8, 2026 it posted $2.34 against $2.29 expected, a 2.2 % beat, and it has topped EPS estimates in 7 of the last 8 quarters. Full-year expectations are drifting lower: the 2026 EPS consensus fell 1.9 % in the last 30 days, from $8.55 to $8.39, while revenue estimates barely moved. Of 46 analysts, 31 rate the stock hold, 13 buy and 1 sell, a lukewarm consensus in line with the falling share price.
Is it as stable as the sector promises?
Consumer defensive companies are Buffett's favourite boring businesses: investors want stability and a growing dividend rather than explosive growth, so gross margin, cash conversion and dividend health matter more than sales spurts. Pepsi passes the core tests. Its gross margin of 54 % in fiscal 2025 clears the 35 % stability bar, free cash flow covered 93 % of net income (healthy from 90 %), and the dividend grew 7.2 % a year over 2015-2025, above the 6 % threshold. The weak spots are in earnings: EPS grew only 4.8 % a year over the same period, the 93 % payout is above the comfortable 75 %, and net debt of 2.6× EBITDA sits right at the 2.5× limit.
How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.
Investor methods verdict
Would Buffett approve PepsiCo today?
The Buffett Method would not approve PepsiCo today: it fails its quality rules. Business quality: 79 out of 100 (price not included). Kaplio assessment with data from the week of October 26, 2026; not investment advice.
Would Peter Lynch approve PepsiCo today?
The Lynch Method would wait for a better price for PepsiCo. Business quality: 38 out of 100 (price not included). Lynch classifies it as a slow grower. Kaplio assessment with data from the week of October 26, 2026; not investment advice.
Profitability
| Return on Equity | 50.62% |
| Return on Invested Capital | 13.88% |
| Return on Assets | 9.74% |
| Gross Margin | 54.17% |
| Operating Margin | 15.32% |
| Net Margin | 11.10% |
Financial Health
| Debt / Equity | 2.33 |
| Current Ratio | 0.94 |
| Piotroski F-Score | 5 |
| Altman Z-Score | 3.54 |
Compare it with
Price Performance
| 1 month | +9.10% |
| 3 months | -1.27% |
| Year-to-date | -4.31% |
| 1 year | -5.99% |
| 3 years | -17.66% |
| 5 years | -16.41% |
| 10 years | +29.80% |
Dividend History
Paid in the last 12 months: $5.805 per share in 4 payments.
| Date | Amount |
|---|---|
| September 4, 2026 | $1.48 |
| June 5, 2026 | $1.48 |
| March 6, 2026 | $1.4225 |
| December 5, 2025 | $1.4225 |
| September 5, 2025 | $1.4225 |
| June 6, 2025 | $1.4225 |
| March 7, 2025 | $1.355 |
| December 6, 2024 | $1.355 |
| September 6, 2024 | $1.355 |
| June 7, 2024 | $1.355 |
Amounts adjusted for stock splits.
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Explore sector: Consumer Defensive · Beverages - Non-Alcoholic
More sections of PEP: Financials · Valuation · Statistics · Estimates · Technical · Ownership · News · Events
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