PEP PE Ratio & Valuation, Is PEP Overvalued

Historical Valuation

PepsiCo Inc (PEP) is now in the Undervalued zone, suggesting that its current forward PE ratio of 16.75 is considered Undervalued compared with the five-year average of 21.82. The fair price of PepsiCo Inc (PEP) is between 185.77 to 232.35 according to relative valuation method. Compared to the current price of 161.53 USD , PepsiCo Inc By Undervalued By 13.05%.

Relative Value

Fair Zone

185.77-232.35

Current Price：161.53

13.05%

Undervalued

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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PepsiCo Inc (PEP) has a current Price-to-Book (P/B) ratio of 10.04. Compared to its 3-year average P/B ratio of 12.05, the current P/B ratio is approximately -16.67% higher. Relative to its 5-year average P/B ratio of 12.70, the current P/B ratio is about -20.93% higher. PepsiCo Inc (PEP) has a Forward Free Cash Flow (FCF) yield of approximately 3.45%. Compared to its 3-year average FCF yield of 3.06%, the current FCF yield is approximately 12.94% lower. Relative to its 5-year average FCF yield of 3.01%, the current FCF yield is about 14.82% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for PEP competitors is 2.03, providing a benchmark for relative valuation. PepsiCo Inc Corp (PEP.O) exhibits a P/S ratio of 2.05, which is 1.03% above the industry average. Given its robust revenue growth of 5.61%, this premium appears unsustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of PEP increased by 0.00% over the past 1 year(s). The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00% to the performance.

Overall, the performance of PEP in the past 1 year(s) is driven by Unknown.

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Frequently Asked Questions

Is PEP currently overvalued or undervalued?

What is PepsiCo Inc (PEP) fair value?

PEP's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. The fair price of PepsiCo Inc (PEP) is between 185.77 to 232.35 according to relative valuation method.

How does PEP's valuation metrics compare to the industry average?

The average P/S ratio for PEP's competitors is 2.03, providing a benchmark for relative valuation. PepsiCo Inc Corp (PEP) exhibits a P/S ratio of 2.05, which is 1.03% above the industry average. Given its robust revenue growth of 5.61%, this premium appears unsustainable.

What is the current P/B ratio for PepsiCo Inc (PEP) as of Mar 10 2026?

As of Mar 10 2026, PepsiCo Inc (PEP) has a P/B ratio of 10.04. This indicates that the market values PEP at 10.04 times its book value.

What is the current FCF Yield for PepsiCo Inc (PEP) as of Mar 10 2026?

As of Mar 10 2026, PepsiCo Inc (PEP) has a FCF Yield of 3.45%. This means that for every dollar of PepsiCo Inc's market capitalization, the company generates 3.45 cents in free cash flow.

What is the current Forward P/E ratio for PepsiCo Inc (PEP) as of Mar 10 2026?

As of Mar 10 2026, PepsiCo Inc (PEP) has a Forward P/E ratio of 16.75. This means the market is willing to pay $16.75 for every dollar of PepsiCo Inc's expected earnings over the next 12 months.

What is the current Forward P/S ratio for PepsiCo Inc (PEP) as of Mar 10 2026?

As of Mar 10 2026, PepsiCo Inc (PEP) has a Forward P/S ratio of 2.05. This means the market is valuing PEP at $2.05 for every dollar of expected revenue over the next 12 months.

PEP Valuation