PepsiCo, Inc. (PEP) Valuation
Historical valuation analysis based on 1279 data points (2021-09-14 to 2026-10-16)
PepsiCo is a global leader in snacks and beverages, owning well-known household brands including Pepsi, Mountain Dew, Gatorade, Lay's, Cheetos, and Doritos, among others. The company dominates the...
PepsiCo, Inc. (PEP) currently trades at a P/E ratio of 16.47 (historical range: 15.87–41.24, median: 25.86), placing it at the 1th percentile — cheap relative to its history, P/S ratio of 1.83 (range: 1.74–3.18, 1th percentile — cheap relative to its history), EV/EBITDA of 14.56 (range: 14.12–34.71, 0th percentile).
Over the historical period (2021-09-14 to 2026-10-16), PepsiCo, Inc.'s P/E ratio has contracted by 16% over the observed period (from an average of 28.1 to 23.6).
PepsiCo, Inc. trades well below its historical valuation range across most metrics.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 16.47 | 25.86 | 1th | cheap relative to its history |
| P/S Ratio | 1.83 | 2.56 | 1th | cheap relative to its history |
| EV/EBITDA | 14.56 | 21.86 | 0th | cheap relative to its history |
| FCF Yield | 5.83% | 3.00% | 100th | cheap relative to its history |
PepsiCo, Inc. (PEP) Valuation & P/E History
PepsiCo, Inc. (PEP) is a US-listed stock operating in the Consumer Defensive sector, specifically the Beverages industry currently trading at $131.50 with a market capitalization of $179.2 billion. This page provides historical valuation analysis for PEP based on 1279 data points covering 2021-09-14 to 2026-10-16. The P/E ratio of 16.47 is below the historical median of 25.86, placing PEP at the 1th percentile of its valuation range. The P/S ratio of 1.83 compares to a median of 2.56.
PEP Valuation Metrics & Historical Range
The valuation table above shows PepsiCo, Inc.'s current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether PEP is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests PEP is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for PepsiCo, Inc..
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is PEP Overvalued or Undervalued?
PepsiCo, Inc. trades well below its historical valuation range across most metrics. The overall valuation percentile of 1 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive PEP is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full PEP analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.PEP trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.