PepsiCo (PEP) Stock Analysis

June 13, 2026

Here is a fundamental analysis of PepsiCo (PEP), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.

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.

Performance at a Glance

PepsiCo (PEP) metric values compared with Food, Beverage & Tobacco industry-group medians
Metric	Current stock: PEP	Industry group median
1-Year Return	13.37%	-0.69%

Risk

Drawdown

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.

Risk at a Glance

PepsiCo (PEP) metric values compared with Food, Beverage & Tobacco industry-group medians
Metric	Current stock: PEP	Industry group median
1-Year Volatility	21.68%	31.22%
Beta	0.35	0.45

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	197.21 billion USD
Currency	USD
Exchange	Nasdaq
Listing Date	June 1, 1972
Security Type	Common Stock

Valuation

Price-to-Earnings Ratio (TTM)

PepsiCo (PEP) trades at P/E ratio of 22.61, 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

22.61

Group distribution

Max: 45.22
Q3: 29.15
PEP: 22.61
Median: 18.76
Q1: 11.63
Min: 5.43

Largest peers

MNST: 44.85
KO: 25.98
PM: 25.96
BUD: 22.97
PEP: 22.61
MO: 15.02
BTI: 13.37

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.

Price-to-Sales Ratio (TTM)

PepsiCo (PEP) trades at 2.07 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

2.07

Group distribution

Max: 3.97
Q3: 2.30
PEP: 2.07
Median: 1.00
Q1: 0.57
Min: 0.00

Largest peers

MNST: 10.32
KO: 7.21
PM: 6.92
MO: 5.90
BTI: 5.26
BUD: 2.63
PEP: 2.07

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.

Price-to-Book Ratio (MRQ)

PepsiCo (PEP) trades at 9.23 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

9.23

Group distribution

PEP: 9.23
Max: 5.99
Q3: 3.21
Median: 1.70
Q1: 0.96
Min: 0.00

Largest peers

BUD: 11.10
BTI: 11.01
KO: 10.57
MNST: 10.40
PEP: 9.23
PM: -30.95
MO: -37.43

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 at a Glance

PepsiCo (PEP) metric values compared with Food, Beverage & Tobacco industry-group medians
Metric	Current stock: PEP	Industry group median
Price-to-Earnings Ratio (TTM)	22.61	18.76
Price-to-Sales Ratio (TTM)	2.07	1.00
Price-to-Book Ratio (MRQ)	9.23	1.70
Free Cash Flow Yield	4.44%	4.46%

Profitability

Return on Equity (TTM)

PepsiCo (PEP) posts ROE of 43.88%, 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

43.88%

Group distribution

PEP: 43.88%
Max: 37.95%
Q3: 18.99%
Median: 14.93%
Q1: 3.88%
Min: -18.08%

Largest peers

PEP: 43.88%
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 Profit Margin (TTM)

PepsiCo (PEP) keeps 9.15% 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

9.15%

Group distribution

Max: 27.80%
Q3: 12.29%
PEP: 9.15%
Median: 6.11%
Q1: 1.28%
Min: -7.46%

Largest peers

MO: 39.52%
BTI: 30.32%
KO: 27.80%
PM: 26.74%
MNST: 23.11%
BUD: 11.90%
PEP: 9.15%

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 Profit Margin (TTM)

PepsiCo (PEP) turns 16.96% 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

16.96%

Group distribution

Max: 36.04%
Q3: 17.34%
PEP: 16.96%
Median: 10.44%
Q1: 3.65%
Min: -7.33%

Largest peers

MO: 62.30%
PM: 36.04%
KO: 35.06%
BTI: 34.58%
MNST: 31.02%
BUD: 26.69%
PEP: 16.96%

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 at a Glance

PepsiCo (PEP) metric values compared with Food, Beverage & Tobacco industry-group medians
Metric	Current stock: PEP	Industry group median
Return on Equity (TTM)	43.88%	14.93%
Return on Assets (TTM)	9.09%	5.50%
Net Profit Margin (TTM)	9.15%	6.11%
Operating Profit Margin (TTM)	16.96%	10.44%
Gross Profit Margin (TTM)	54.38%	34.44%

Financial Strength

Current Ratio (MRQ)

PepsiCo (PEP) has current ratio of 0.90, 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

0.90

Group distribution

Max: 5.06
Q3: 2.66
Median: 1.60
Q1: 1.05
PEP: 0.90
Min: 0.54

Largest peers

MNST: 3.26
KO: 1.36
PM: 0.98
PEP: 0.90
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-to-Equity Ratio (MRQ)

PepsiCo (PEP) has debt-to-equity ratio of 2.45, 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

2.45

Group distribution

PEP: 2.45
Max: 2.20
Q3: 1.12
Median: 0.70
Q1: 0.35
Min: 0.00

Largest peers

PEP: 2.45
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 at a Glance

PepsiCo (PEP) metric values compared with Food, Beverage & Tobacco industry-group medians
Metric	Current stock: PEP	Industry group median
Current Ratio (MRQ)	0.90	1.60
Debt-to-Equity Ratio (MRQ)	2.45	0.70
Net Debt / EBITDA	2.24	2.24

Dividends

Dividend Yield (TTM)

PepsiCo (PEP) has dividend yield of 4.10%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

PEP

Food, Beverage & Tobacco industry group

4.10%

Group distribution

Max: 10.71%
Q3: 4.63%
PEP: 4.10%
Median: 3.19%
Q1: 0.00%
Min: 0.00%

Largest peers

MO: 5.89%
BTI: 5.36%
PEP: 4.10%
PM: 3.19%
KO: 2.57%
BUD: 1.62%
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 89.32%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.

PEP

Food, Beverage & Tobacco industry group

89.32%

Group distribution

Max: 159.06%
PEP: 89.32%
Q3: 86.47%
Median: 45.18%
Q1: 0.00%
Min: 0.00%

Largest peers

PEP: 89.32%
MO: 87.68%
PM: 81.09%
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.

Dividends at a Glance

PepsiCo (PEP) metric values compared with Food, Beverage & Tobacco industry-group medians
Metric	Current stock: PEP	Industry group median
Dividend Yield (TTM)	4.10%	3.19%
Dividend Payout Ratio (TTM)	89.32%	45.18%