PepsiCo (PEP) Stock Analysis

July 23, 2026

This is a peer-relative look at PepsiCo (PEP): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Food, Beverage & Tobacco peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for PepsiCo (PEP)
Profile Item	PEP
Name	PepsiCo, Inc.
Country/Region	United States
GICS Sector	Consumer Staples
GICS Industry Group	Food, Beverage & Tobacco
GICS Industry	Beverages
GICS Sub-Industry	Soft Drinks & Non-alcoholic Beverages
Market Capitalization	184.41 billion USD
Currency	USD
Exchange	Nasdaq
Listing Date	June 1, 1972
Security Type	Common Stock

Price Performance

Cumulative Growth

PEP

GSPC

PepsiCo (PEP) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for PepsiCo (PEP) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for PepsiCo (PEP) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

PepsiCo (PEP) metric values compared with Food, Beverage & Tobacco industry-group medians
Metric	Current stock: PEP	Industry group median
Total Return (1Y)	-0.96%	0.15%
Total Return (3Y, Annualized)	-7.62%	0.36%
Total Return (5Y, Annualized)	0.37%	1.03%

Risk Profile

Drawdown History

PEP

GSPC

PepsiCo (PEP) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for PepsiCo (PEP) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

PepsiCo (PEP) metric values compared with Food, Beverage & Tobacco industry-group medians
Metric	Current stock: PEP	Industry group median
Volatility (1Y, Annualized)	21.61%	31.35%
Beta (5Y)	0.35	0.45
Max Drawdown (5Y)	-30.32%	-49.32%

Risk-Adjusted Performance

Risk-Return Positioning

Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. PEP is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

PepsiCo (PEP) metric values compared with Food, Beverage & Tobacco industry-group medians
Metric	Current stock: PEP	Industry group median
Sharpe Ratio (1Y)	-0.23	-0.15
Sortino Ratio (1Y)	-0.34	-0.20

Profitability

ROE (TTM)

PepsiCo (PEP) posts ROE of 51.51%, above the industry benchmark range. Equity is being turned into profit at an exceptional rate, but very high ROE should still be checked against leverage, buybacks, and the size of the equity base.

PEP

Food, Beverage & Tobacco industry group

51.51%

Group distribution

PEP: 51.51%
Max: 34.02%
Q3: 18.27%
Median: 14.93%
Q1: 3.98%
Min: -12.58%

Largest peers

PEP: 51.51%
KO: 43.37%
MNST: 26.65%
BTI: 15.82%
PM: --
BUD: --
MO: --

Where PepsiCo (PEP) stands on ROE within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

PepsiCo (PEP) keeps 10.79% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

PEP

Food, Beverage & Tobacco industry group

10.79%

Group distribution

Max: 27.80%
Q3: 12.49%
PEP: 10.79%
Median: 6.11%
Q1: 1.35%
Min: -14.28%

Largest peers

MO: 39.52%
BTI: 30.32%
KO: 27.80%
PM: 26.74%
MNST: 23.11%
BUD: 11.90%
PEP: 10.79%

Where PepsiCo (PEP) stands on net margin within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

PepsiCo (PEP) turns 16.84% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

PEP

Food, Beverage & Tobacco industry group

16.84%

Group distribution

Max: 36.04%
Q3: 17.42%
PEP: 16.84%
Median: 10.90%
Q1: 3.74%
Min: -7.33%

Largest peers

MO: 62.30%
PM: 36.04%
KO: 35.06%
BTI: 34.58%
MNST: 31.02%
BUD: 26.69%
PEP: 16.84%

Where PepsiCo (PEP) stands on operating margin within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

PepsiCo (PEP) metric values compared with Food, Beverage & Tobacco industry-group medians
Metric	Current stock: PEP	Industry group median
ROE (TTM)	51.51%	14.93%
ROA (TTM)	8.93%	5.50%
Net Margin (TTM)	10.79%	6.11%
Operating Margin (TTM)	16.84%	10.90%
Gross Margin (TTM)	54.17%	34.44%

Growth

Revenue Growth

PepsiCo (PEP) grew revenue 2.25%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

PepsiCo (PEP): Revenue Growth across different time periods, set against Food, Beverage & Tobacco industry-group medians.

EPS Growth

PepsiCo (PEP) grew earnings per share -13.67%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

PepsiCo (PEP): EPS Growth across different time periods, set against Food, Beverage & Tobacco industry-group medians.

Growth Metrics

PepsiCo (PEP) metric values compared with Food, Beverage & Tobacco industry-group medians
Metric	Current stock: PEP	Industry group median
Revenue Growth (YoY)	2.25%	2.97%
Revenue Growth (3Y CAGR)	2.83%	3.03%
EPS Growth (YoY)	-13.67%	-2.63%
EPS Growth (3Y CAGR)	-2.23%	4.72%

Financial Strength

Current Ratio (MRQ)

PepsiCo (PEP) has current ratio of 0.93, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

PEP

Food, Beverage & Tobacco industry group

0.93

Group distribution

Max: 4.39
Q3: 2.41
Median: 1.60
Q1: 1.02
PEP: 0.93
Min: 0.54

Largest peers

MNST: 3.26
KO: 1.36
PM: 0.98
PEP: 0.93
BTI: 0.87
MO: 0.62
BUD: --

Where PepsiCo (PEP) stands on current ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

PepsiCo (PEP) has debt-to-equity ratio of 2.39, above the industry benchmark range. Debt sits unusually high against shareholders’ equity, leaving the balance sheet more exposed to rate, refinancing, or earnings shocks.

PEP

Food, Beverage & Tobacco industry group

2.39

Group distribution

PEP: 2.39
Max: 2.20
Q3: 1.15
Median: 0.67
Q1: 0.34
Min: 0.00

Largest peers

PEP: 2.39
KO: 1.25
BUD: 0.75
BTI: 0.73
MNST: 0.01
PM: --
MO: --

Where PepsiCo (PEP) stands on debt-to-equity ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

PepsiCo (PEP) metric values compared with Food, Beverage & Tobacco industry-group medians
Metric	Current stock: PEP	Industry group median
Current Ratio (MRQ)	0.93	1.60
Debt / Equity (MRQ)	2.39	0.67
Net Debt / EBITDA	2.25	2.25

Dividends

Dividend Yield (TTM)

PepsiCo (PEP) has dividend yield of 4.24%, in the upper peer-yield quartile while still inside the industry range. The dividend offers more cash income per dollar of share price than most peers, though payout coverage still matters.

PEP

Food, Beverage & Tobacco industry group

4.24%

Group distribution

Max: 9.56%
PEP: 4.24%
Q3: 4.15%
Median: 2.57%
Q1: 0.00%
Min: 0.00%

Largest peers

MO: 5.63%
PEP: 4.24%
BTI: 3.92%
PM: 2.99%
KO: 2.51%
BUD: 0.00%
MNST: 0.00%

Where PepsiCo (PEP) stands on dividend yield within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

PepsiCo (PEP) has payout ratio of 75.33%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.

PEP

Food, Beverage & Tobacco industry group

75.33%

Group distribution

Max: 159.06%
Q3: 85.24%
PEP: 75.33%
Median: 44.62%
Q1: 0.00%
Min: 0.00%

Largest peers

MO: 87.68%
PM: 81.09%
PEP: 75.33%
BTI: 68.73%
KO: 64.78%
BUD: 36.02%
MNST: 0.00%

Where PepsiCo (PEP) stands on payout ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

PepsiCo (PEP) metric values compared with Food, Beverage & Tobacco industry-group medians
Metric	Current stock: PEP	Industry group median
Dividend Yield (TTM)	4.24%	2.57%
Dividend Payout Ratio (TTM)	75.33%	44.62%

Valuation

P/E Ratio (TTM)

PepsiCo (PEP) trades at P/E ratio of 17.76, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

PEP

Food, Beverage & Tobacco industry group

17.76

Group distribution

Max: 53.44
Q3: 29.84
Median: 18.36
PEP: 17.76
Q1: 13.03
Min: 5.50

Largest peers

MNST: 45.63
PM: 27.10
KO: 25.86
BUD: 22.34
PEP: 17.76
MO: 15.56
BTI: 13.56

Where PepsiCo (PEP) stands on P/E ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

PepsiCo (PEP) trades at 1.90 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

PEP

Food, Beverage & Tobacco industry group

1.90

Group distribution

Max: 4.15
Q3: 2.38
PEP: 1.90
Median: 1.04
Q1: 0.57
Min: 0.00

Largest peers

MNST: 10.51
KO: 7.16
PM: 7.06
MO: 5.98
BTI: 5.17
BUD: 2.58
PEP: 1.90

Where PepsiCo (PEP) stands on P/S ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

PepsiCo (PEP) trades at 8.64 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.

PEP

Food, Beverage & Tobacco industry group

8.64

Group distribution

PEP: 8.64
Max: 5.75
Q3: 3.46
Median: 1.75
Q1: 0.99
Min: 0.00

Largest peers

BUD: 10.91
BTI: 10.78
MNST: 10.58
KO: 10.49
PEP: 8.64
PM: -31.58
MO: -37.98

Where PepsiCo (PEP) stands on P/B ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

PepsiCo (PEP) metric values compared with Food, Beverage & Tobacco industry-group medians
Metric	Current stock: PEP	Industry group median
P/E Ratio (TTM)	17.76	18.36
P/S Ratio (TTM)	1.90	1.04
P/B Ratio (MRQ)	8.64	1.75
Free Cash Flow Yield (TTM)	4.25%	4.58%