Latest Ratios: P/E Ratio 24.2x · EV/EBITDA 13.5x · ROE 42.6%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $198.2B | $197.4B | $209.5B | $234.9B | $250.6B | $241.3B | $206.4B | $192.3B | $157.4B | $172.4B | $151.9B |
| Enterprise Value | $238.9B | $238.2B | $246.0B | $269.8B | $285.2B | $276.5B | $242.9B | $219.3B | $181.0B | $201.1B | $179.7B |
| P/E Ratio → | 24.16 | 23.96 | 21.88 | 25.89 | 28.14 | 31.70 | 29.02 | 26.28 | 12.58 | 35.48 | 24.00 |
| P/S Ratio | 2.11 | 2.10 | 2.28 | 2.57 | 2.90 | 3.04 | 2.93 | 2.86 | 2.43 | 2.71 | 2.42 |
| P/B Ratio | 9.69 | 9.61 | 11.53 | 12.60 | 14.51 | 14.94 | 15.23 | 12.93 | 10.78 | 15.70 | 13.57 |
| P/FCF | 25.83 | 25.73 | 29.15 | 29.64 | 44.71 | 34.51 | 32.39 | 35.50 | 25.67 | 24.55 | 20.63 |
| P/OCF | 16.40 | 16.33 | 16.75 | 17.47 | 23.18 | 20.77 | 19.45 | 19.93 | 16.72 | 17.25 | 14.60 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.54 | 2.68 | 2.95 | 3.30 | 3.48 | 3.45 | 3.27 | 2.80 | 3.17 | 2.86 |
| EV / EBITDA | 13.52 | 13.48 | 14.73 | 17.40 | 19.28 | 19.23 | 18.53 | 16.70 | 14.47 | 15.90 | 14.76 |
| EV / EBIT | 17.71 | 20.95 | 19.12 | 22.05 | 24.49 | 23.66 | 23.82 | 21.40 | 17.39 | 18.70 | 18.16 |
| EV / FCF | — | 31.04 | 34.22 | 34.05 | 50.89 | 39.55 | 38.11 | 40.48 | 29.52 | 28.63 | 24.40 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 54.1% | 54.1% | 54.6% | 54.2% | 53.0% | 53.3% | 54.8% | 55.1% | 54.6% | 54.7% | 55.1% |
| Operating Margin | 14.4% | 14.4% | 14.0% | 13.1% | 13.3% | 14.0% | 14.3% | 15.3% | 15.6% | 16.2% | 15.6% |
| Net Profit Margin | 8.8% | 8.8% | 10.4% | 9.9% | 10.3% | 9.6% | 10.1% | 10.9% | 19.4% | 7.6% | 10.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 42.6% | 42.6% | 52.0% | 50.5% | 53.3% | 51.3% | 50.1% | 49.6% | 97.8% | 43.8% | 54.5% |
| ROA | 8.0% | 8.0% | 9.6% | 9.4% | 9.7% | 8.2% | 8.3% | 9.4% | 15.9% | 6.3% | 8.8% |
| ROIC | 17.5% | 17.5% | 17.9% | 17.0% | 16.7% | 16.5% | 16.5% | 19.3% | 19.5% | 19.6% | 19.6% |
| ROCE | 18.9% | 18.9% | 18.8% | 17.9% | 17.5% | 16.5% | 15.8% | 18.1% | 17.6% | 18.4% | 18.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 2.43 | 2.43 | 2.47 | 2.40 | 2.29 | 2.52 | 3.29 | 2.19 | 2.21 | 3.58 | 3.30 |
| Debt / EBITDA | 2.82 | 2.82 | 2.69 | 2.88 | 2.67 | 2.84 | 3.40 | 2.48 | 2.58 | 3.11 | 3.04 |
| Net Debt / Equity | — | 1.98 | 2.01 | 1.88 | 2.00 | 2.18 | 2.69 | 1.82 | 1.62 | 2.61 | 2.48 |
| Net Debt / EBITDA | 2.31 | 2.31 | 2.18 | 2.25 | 2.34 | 2.45 | 2.78 | 2.06 | 1.89 | 2.27 | 2.28 |
| Debt / FCF | — | 5.31 | 5.07 | 4.41 | 6.17 | 5.03 | 5.72 | 4.98 | 3.85 | 4.08 | 3.77 |
| Interest Coverage | 10.14 | 10.14 | 14.00 | 14.94 | 12.40 | 6.27 | 9.04 | 10.96 | 8.54 | 9.34 | 7.37 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.85 | 0.85 | 0.82 | 0.85 | 0.80 | 0.83 | 0.98 | 0.86 | 0.99 | 1.51 | 1.25 |
| Quick Ratio | 0.67 | 0.67 | 0.65 | 0.68 | 0.61 | 0.66 | 0.81 | 0.70 | 0.85 | 1.37 | 1.12 |
| Cash Ratio | 0.29 | 0.29 | 0.29 | 0.32 | 0.20 | 0.23 | 0.41 | 0.28 | 0.41 | 0.95 | 0.76 |
| Asset Turnover | — | 0.87 | 0.92 | 0.91 | 0.94 | 0.86 | 0.76 | 0.86 | 0.83 | 0.80 | 0.85 |
| Inventory Turnover | 7.37 | 7.37 | 7.87 | 7.85 | 7.77 | 8.53 | 7.62 | 9.03 | 9.39 | 9.77 | 10.36 |
| Days Sales Outstanding | — | 44.71 | 41.06 | 43.16 | 42.94 | 39.86 | 43.59 | 42.51 | 40.32 | 40.36 | 38.91 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.8% | 3.9% | 3.5% | 2.8% | 2.5% | 2.4% | 2.7% | 2.8% | 3.1% | 2.6% | 2.8% |
| Payout Ratio | 92.7% | 92.7% | 75.5% | 73.6% | 69.3% | 76.3% | 77.4% | 72.5% | 39.4% | 92.1% | 66.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.1% | 4.2% | 4.6% | 3.9% | 3.6% | 3.2% | 3.4% | 3.8% | 7.9% | 2.8% | 4.2% |
| FCF Yield | 3.9% | 3.9% | 3.4% | 3.4% | 2.2% | 2.9% | 3.1% | 2.8% | 3.9% | 4.1% | 4.8% |
| Buyback Yield | 0.5% | 0.5% | 0.5% | 0.4% | 0.6% | 0.0% | 1.0% | 1.6% | 1.3% | 1.2% | 2.0% |
| Total Shareholder Yield | 4.3% | 4.4% | 3.9% | 3.3% | 3.1% | 2.5% | 3.6% | 4.3% | 4.4% | 3.8% | 4.8% |
| Shares Outstanding | — | $1.4B | $1.4B | $1.4B | $1.4B | $1.4B | $1.4B | $1.4B | $1.4B | $1.4B | $1.5B |
Volume elasticity and leverage
Based on current market data, PepsiCo trades at a forward P/E of 16.36 and a P/FCF of 25.19, suggesting that investors are paying a significant premium for defensive stability despite the company's recent struggles to maintain consistent organic volume growth across its core North American segments.
The current valuation appears to bake in an expectation of long-term brand resilience that may be challenged by shifting consumer preferences and volume elasticity. When compared to the broader peer group, the valuation premium reflects the market's historical confidence in the Frito-Lay moat, yet the high PEG ratio of 7.22 indicates that current earnings growth may not justify the existing multiple.
As reported in financial statements, ROIC has remained in a narrow range between 2.4% and 5.3% over the last ten quarters, indicating that the company's heavy investment in its integrated distribution network is currently failing to generate returns that significantly exceed its cost of capital.
The persistent trend of low single-digit ROIC suggests that the capital-intensive nature of the DSD model acts as a drag on overall efficiency. Investors should monitor whether management can optimize its asset base, as the current returns appear insufficient to drive meaningful long-term value creation without significant margin expansion.
According to recent quarterly filings, the cash conversion cycle has fluctuated wildly, reaching a low of -99 days in 2024Q3 and a high of -54 days in 2025Q4, which highlights the company's inconsistent ability to leverage its supplier relationships and manage inventory turnover effectively.
The extreme swings in the CCC suggest that operational efficiency is highly sensitive to seasonal inventory builds and trade spend timing. This volatility complicates the assessment of underlying working capital health and may indicate that the company is using aggressive promotional allowances to manage short-term volume targets.
Based on reported figures, the debt-to-equity ratio has consistently hovered above 2.30, which, when combined with a current ratio frequently below 1.0, suggests that the company's balance sheet is increasingly vulnerable to interest rate volatility and potential refinancing risks in the near term.
The reliance on debt to fund both operations and dividend commitments appears to be a structural feature rather than a temporary necessity. This leverage profile limits the company's capacity for transformative M&A and places additional pressure on cash flow to maintain its long-standing dividend payout record.
The P/E ratio is frequently misapplied to PepsiCo because it obscures the significant impact of non-operating items and the company's heavy reliance on debt-funded capital allocation, which can artificially inflate or deflate earnings per share relative to the actual cash generated by core business operations.
Analysts should prioritize FCF-based metrics or EV/EBITDA to better capture the true earning power of the business, as the P/E ratio fails to account for the capital intensity of the DSD model. Relying solely on P/E risks ignoring the underlying volatility in cash conversion and the structural debt burden that defines the company's current financial reality.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying PEP stock.
PepsiCo, Inc.'s current P/E ratio is 24.2x. The historical average is 24.7x. This places it at the 50th percentile of its historical range.
PepsiCo, Inc.'s current EV/EBITDA is 13.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.7x.
PepsiCo, Inc.'s return on equity (ROE) is 42.6%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 39.7%.
Based on historical data, PepsiCo, Inc. is trading at a P/E of 24.2x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
PepsiCo, Inc.'s current dividend yield is 3.84% with a payout ratio of 92.7%.
PepsiCo, Inc. has 54.1% gross margin and 14.4% operating margin. Operating margin between 10-20% is typical for established companies.
PepsiCo, Inc.'s Debt/EBITDA ratio is 2.8x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.