Pepsico Inc (PEP)
Consumer Staples · Soft Drinks & Non-alcoholic Beverages · US stock · S&P 500 component
$138.83
▲ +4.13 (3.07%)
Fair valueUndervalued
$175 +26.1% to fair value
$88fair band $149–$212$263
Day's range
$134.85 – $138.99
52-week range
$123.47 – $171.48
About Pepsico Inc
PepsiCo is a global food and beverage company. Its portfolio includes snack brands such as Lay's and Doritos, soft drinks and other beverages, and packaged foods such as Quaker oats. It makes concentrates and finished products, then sells them through supermarkets, convenience stores, restaurants and bottling partners. Revenue comes from product sales, and results are influenced by ingredient costs, pricing decisions and consumer demand.
Shareholders receive a dividend, yielding 4.2%. Looking at the numbers, trailing revenue is $98.2 billion, and it expanded at 2.8% a year across three years. Operating margin is 15.3%, while return on invested capital is 18%. Leverage, measured as net debt to EBITDA, is 2.4 times. Taken together, these figures give an X-Ray Score of 60 out of 100.
Price chart
52-wk range $123.47 – $171.48Volume 9,374,285Daily, split-adjusted
Vitals
Market cap$189.8B
52-week range$123.47 – $171.48
Volume (last day)9,374,285
P/E (TTM)17.5
EBIT / EV yield6.4%
Free-cash-flow yield5.5%
Dividend yield4.2%
Revenue (TTM)$98.2B
Net income (TTM)$10.9B
Operating margin15.3%
Return on capital17.7%
Debt incl. leases$56.7B
Cash & securities$11.2B
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$175middle half of models $170 – $179
Undervalued
+26.1% to fair value
Average of the 13 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Low, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $139
Undervalued < $149Fair $149 – $212Overvalued > $212
P/E multiple
$148
P/B multiple
$171
P/S multiple
$203
EV/EBITDA multiple
$184
EV/EBIT multiple
$186
EV/revenue multiple
$177
10-year DCF, EBITDA exit
$179
5-year DCF, EBITDA exit
$173
10-year DCF, revenue exit
$177
5-year DCF, revenue exit
$170
10-year DCF, growth exit
$168
5-year DCF, growth exit
$162
Dividend discount, stable · not used
$297
Dividend discount, multi-stage · not used
$555
Earnings power value
$178
Growth the price implies
4.3%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Average business at a low price
Our models put fair value above today's price, but models can be wrong, so check the business first. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Consumer Staples peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Strong
80/100
Cheap against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield6.4%
Free-cash-flow yield5.5%
Fair value vs price1.3×
Growth
Weak
48/100
Growing slower than most of its sector.
See the numbers →
Revenue growth (3y)2.8%
EPS growth (3y)-2.2%
Growth consistency70%
Profitability
Fair
65/100
Returns on capital are typical for its sector.
See the numbers →
Return on invested capital17.7%
Operating margin15.3%
Gross profitability47.5%
Financial health
Weak
39/100
Balance sheet is more stretched than most peers.
See the numbers →
Piotroski F-Score5 / 9
Net debt / EBITDA2.4×
Interest cover13.6×
Dividends
Fair
61/100
Dividend is typical for its sector.
See the numbers →
Dividend yield4.2%
Dividends vs free cash flow76%
Dividend growth7.4%
Quarterly results: last 6 quarters
+1.0%
Jun '25
+2.7%
Sep '25
+5.6%
Dec '25
+8.5%
Mar '26
+6.4%
Jun '26
+5.6%
Sep '26
Revenue against the same quarter a year earlier. Latest quarter revenue $25.3B, diluted EPS $2.23.
Compare with peers
MNST Monster Beverage Corp77 KDP Keurig Dr Pepper Inc.50 KO Coca Cola Co43Other Soft Drinks & Non-alcoholic Beverages companies by X-Ray Score.
SWOT analysis: Pepsico Inc
Strengthsinside the company
- Return on invested capital is 17.7%, against a median of 18.0% for industry peers.
- Free cash flow equals 5.5% of the market value, which funds dividends, buybacks or debt paydown.
- Operating profit covers interest 14x, so debt costs are a small drag.
Weaknessesinside the company
- Operating margin of 15.3% is thin against 29.2% for industry peers.
Opportunitiesvaluation and setting
- Trades at 17.4x earnings, 42% below the 30.0x median of industry peers.
- The price is 26% below our fair value estimate, with the gap larger than the margin we allow for error.
Threatsvaluation and setting
- No specific threat is flagged by our checks; general market and interest-rate risk still applies.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare PEP with peers and sector
Medians of 3 Soft Drinks & Non-alcoholic Beverages peers and of 28 Consumer Staples stocks in our universe.
Largest peers (X-Ray Score): KO 43, KDP 50, MNST 77.
| Metric | PEP | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 60 | 50 | 50 |
| Valuation | 80 | 56 | 53 |
| Growth | 48 | 70 | 49 |
| Profitability | 64 | 48 | 51 |
| Financial health | 39 | 64 | 54 |
| Dividends | 61 | – | 50 |
Sector leaders: highest X-Ray Score in Consumer Staples
PEP ranks #6 of 29 in Consumer Staples and #2 of 4 in Soft Drinks & Non-alcoholic Beverages by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for PEP
Each factor is rated by where PEP stands among the 29 Consumer Staples stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 5 Good · 13 Average · 4 Bad of 22
Growth: 0 · 3 · 0
Profitability: 2 · 3 · 0
Financial strength: 0 · 2 · 2
Valuation: 2 · 2 · 1
Cash flow: 0 · 3 · 1
Efficiency: 1 · 0 · 0
| Factor | PEP | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +2.8% | Average beats 55% | +2.3% | – | – |
| Revenue growth, last year | +2.3% | Average beats 52% | +2.2% | +5.9% | ▼ Worse |
| EPS growth, 3 years a year | −2.2% | Average beats 34% | +2.0% | – | – |
| Profitability | |||||
| Gross margin | 54.2% | Good beats 72% | 38.7% | 54.1% | ≈ In line |
| Operating margin | 15.3% | Average beats 65% | 11.0% | 13.3% | ▲ Better |
| Net margin | 11.1% | Average beats 66% | 6.9% | 9.9% | ▲ Better |
| Return on invested capital | 17.7% | Average beats 57% | 15.2% | – | – |
| Return on equity | 48.9% | Good beats 87% | 18.6% | 49.0% | ≈ In line |
| Financial strength | |||||
| Net debt / EBITDA | 2.4x | Average beats 34% | 2.0x | 2.7x | ≈ In line |
| Interest cover | 13.6x | Average beats 56% | 11.8x | 12.3x | ▲ Better |
| Current ratio | 0.94 | Bad beats 30% | 1.04 | 0.83 | ▲ Better |
| Piotroski F-score | 5 / 9 | Bad beats 21% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 17.4x | Good beats 83% | 25.0x | 25.9x | ▲ Better |
| Price / book | 8.5x | Bad beats 29% | 4.5x | 12.7x | ▲ Better |
| Price / sales | 1.9x | Average beats 48% | 1.8x | 2.6x | ▲ Better |
| EV / EBITDA | 12.6x | Good beats 75% | 15.2x | 18.4x | ▲ Better |
| Free cash flow yield | 5.5% | Average beats 63% | 4.8% | 3.4% | ▲ Better |
| Cash flow | |||||
| Free cash flow margin | 10.7% | Average beats 56% | 9.3% | 8.2% | ▲ Better |
| Cash from operations / net income | 1.34 | Bad beats 31% | 1.54 | 1.47 | ≈ In line |
| Free cash flow growth, 3 years a year | +11.0% | Average beats 50% | +11.0% | – | – |
| Accruals (lower is better) | −3.3% | Average beats 40% | −4.2% | – | – |
| Efficiency | |||||
| Inventory turnover | 7.0x | Good beats 81% | 5.3x | 7.9x | ▼ Worse |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 3 Good · ● 11 Average · ● 2 BadCash quality
Earnings backed by cashAverage
Free-cash-flow yieldAverage
Risk models
Altman Z''Average
Piotroski F-ScoreBad
Growth
EPS growth (3y)Average
Free-cash-flow growth (3y)Average
Revenue growth (3y)Average
Growth consistencyAverage
Balance sheet
Current ratioBad
Net debt / EBITDAAverage
Interest coverAverage
Valuation
Fair value vs priceGood
EBIT / EV yieldGood
Profitability
Return on invested capitalAverage
Operating marginAverage
Gross profitabilityGood
Each check is graded against the company's sector, not a fixed number. Checklist score 57/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $79.5B | $86.4B | $91.5B | $91.9B | $93.9B |
| Operating income | $11.2B | $11.5B | $12.0B | $12.9B | $11.5B |
| Net income | $7.6B | $8.9B | $9.1B | $9.6B | $8.2B |
| Operating cash flow | $11.6B | $10.8B | $13.4B | $12.5B | $12.1B |
| Operating margin | 14.0% | 13.3% | 13.1% | 14.0% | 12.2% |
| Free cash flow | $7.0B | $5.6B | $7.9B | $7.2B | $7.7B |
| Diluted EPS | $5.49 | $6.42 | $6.56 | $6.95 | $6.00 |
Fiscal years, from SEC filings.
Technical summary
Daily
Bullish
10 bullish · 1 neutral · 5 bearish
Weekly
Neutral
5 bullish · 1 neutral · 6 bearish
Monthly
Strongly bearish
0 bullish · 1 neutral · 7 bearish
Moving averages (daily)
| SMA 10 | 131.0 | Bullish |
| EMA 10 | 132.4 | Bullish |
| SMA 20 | 128.9 | Bullish |
| EMA 20 | 131.1 | Bullish |
| SMA 50 | 133.7 | Bullish |
| EMA 50 | 132.8 | Bullish |
| SMA 100 | 136.2 | Bullish |
| EMA 100 | 136.2 | Bullish |
| SMA 200 | 143.8 | Bearish |
| EMA 200 | 139.4 | Bearish |
Oscillators (daily)
| RSI (14) | 69.16 | Neutral |
| MACD (12, 26) | 0.63 | Bullish |
| Momentum (12) | 10.44 | Bullish |
| Stochastic %K (14) | 98.97 | Bearish |
| Williams %R (14) | -1.03 | Bearish |
| CCI (20) | 221.3 | Bearish |
Pivot points (classic, last session)
S3 132.0 | S2 133.4 | S1 136.1 | Pivot 137.6 | R1 140.3 | R2 141.7 | R3 144.4 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
5.81 USD
Yield on today's price
4.18%
Frequency
Quarterly
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 1.4800 | |
| 1.4800 | |
| 1.4230 | |
| 1.4230 | |
| 1.4230 | |
| 1.4230 | |
| 1.3550 | |
| 1.3550 | |
| 1.3550 | |
| 1.3550 | |
| 1.2650 | |
| 1.2650 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold PEP
| ETF | Share of the fund |
|---|---|
| IYK iShares US Consumer Staples | 7.40% |
| FDL First Trust Morningstar Dividend Leade... | 4.84% |
| XLP Consumer Staples Select Sector SPDR | 4.32% |
| VDC Vanguard Consumer Staples | 4.28% |
| FSTA Fidelity MSCI Consumer Staples Index | 4.23% |
| HDV iShares Core High Dividend | 3.46% |
| SCHD Schwab U.S. Dividend Equity | 3.44% |
| PWV Invesco Dynamic Large Cap Value | 2.95% |
The eight funds with the largest weight in PEP among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
PEP stock splits
PEP has split its stock 2 times since 1990. The latest was a 2-for-1 split on 29 May 1996.
Full PEP stock split history →PEP SEC filings
8-KSEC EDGAR
Other events
8-KSEC EDGAR
Results of operations
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Director or officer change
8-KSEC EDGAR
Results of operations
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Other events
8-KSEC EDGAR
Shareholder vote results
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.