# PepsiCo Inc. (PEP) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Consumer Defensive / Beverages. Price $137.63, market value $188.0 billion.

## Valuation
- **P/E (trailing): 18.1×** (5-yr avg 23.9×, 3-yr avg 22.6×). PepsiCo Inc. trades at 18.1× trailing earnings, well below its own five-year average of 23.9×: cheap by its own standards. The Consumer Defensive median in the September 2026 study was 20.1×. Forward P/E is 15.3×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 1.9×**. Each dollar of revenue is priced at 1.9×.
- **Price / book: 8.5×**. The shares trade at 8.5× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 12.8×**. Enterprise value is 12.8× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 4.1%** (5-yr avg 3.4%). Free cash flow equals 4.1% of the market value, in line with its five-year average of 3.4%.
- **Earnings yield: 5.5%**. The inverse of the P/E: 5.5% of the price is earned each year.

## Profitability
- **Gross margin: 54.0%**. PepsiCo Inc. keeps 54.0% of revenue after the direct cost of what it sells.
- **Operating margin: 14.8%**. 14.8% of revenue is left after running the business.
- **Net margin: 8.8%**. 8.8% of each dollar of sales reaches the bottom line.
- **Return on equity: 40.4%**. 40.4% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 18.8%**. Return on all capital, debt included, is 18.8%: comfortably above what that capital costs.
- **Return on assets: 9.7%**. Each dollar of assets produces 9.7% of profit.

## Growth
- **Revenue growth (1 yr): 2.3%** (3-yr 2.8%/yr, 5-yr 5.9%/yr). Revenue grew 2.3% over the last year, against 5.9% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -13.7%** (3-yr -2.2%/yr, 5-yr 3.2%/yr). Earnings per share fell 13.7%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 11.0%/yr**. Free cash flow has compounded at 11.0% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 2.41**. Debt is 2.41 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 2.2×**. It would take 2.2 years of operating earnings to repay net borrowings, within the comfortable range.
- **Altman Z-score: 2.79**. A Z-score of 2.79 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 4.30%** ($5.75 per share, trailing). PepsiCo Inc. yields 4.30%, an income-level yield.
- **Payout ratio: 93%** (100% of free cash flow). 93% of earnings goes out as dividends, leaving a thin cushion.
- **Consecutive years of increases: 26**. 26 straight years of increases (the data covers 26 years, so this may be longer): a record very few companies hold.
- **Dividend growth (5 yr): 6.9%/yr** (1-yr 5.5%). The dividend has grown 6.9% a year over five years.

## Analyst view
- **Analyst consensus: hold** (22 analysts). 22 analysts cover PepsiCo Inc.; the consensus is hold, with an average price target of $155.00 (+13% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -2.6%** (YTD -2.2%, 3-mo -3.0%). The shares are down 2.6% over twelve months including dividends.
- **From 52-week high: -19.7%** (2.9% above the low). Trading 20% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 42**. An RSI of 42 is neutral.
- **Beta (1 yr): -0.22** (volatility 21%). Beta of -0.22 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=PEP · Page: https://foliofundamentals.com/stocks/pep

Not investment advice.