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Pepsico (PEP) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Pepsico
NasdaqGS•Consumer Defensive•Beverages - Non-Alcoholic
$137.34+3.55(0.03%)Market closed
Market Cap
$191.53B
P/E
17.6x
P/S
1.9x
P/B
8.5x

PepsiCo, Inc. engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide. The company operates through six segments: PepsiCo Foods North America; PepsiCo Beverages North America; International Beverages Franchise; Europe, Middle East and Africa; Latin America Foods; and Asia Pacific Foods. It offers cereals, chips, dips, granola bars, oatmeal, pasta, rice, and syrups and mixes; refrigerated dips and spreads; beverage concentrates, fountain syrups, and finished goods; and ready-to-drink tea and coffee products. The company also provides SodaStream sparkling water makers and related products, as well as various dairy products under the Agusha, Chudo, and Domik v Derevne brands. It serves wholesale and other distributors, foodservice customers, grocery stores, drug stores, convenience stores, discount/dollar stores, mass merchandisers, membership stores, hard discounters, e-commerce retailers and authorized independent bottlers, and others through a network of direct-store-delivery, customer warehouse, and distributor networks, as well as directly to consumers through e-commerce platforms and retailers. PepsiCo, Inc. was founded in 1898 and is based in Purchase, New York.

A

How this company scores

ExcellentMetricSide Score: 87/100

Strongest: Profitability (25/25); weakest: Balance Sheet & Red Flags (18/25).

Profitability25/25
Growth21/25
Balance Sheet & Red Flags18/25
Cash & Earnings Quality23/25
Strengths
Rising free cash flowStrong marginsHigh ROERising earnings

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 17.6x5y range 17.6x – 34.8x
P/E 17.6x · below its 20-quarter median

Currently below its 20-quarter median.

P/S · 1.9x5y range 1.9x – 2.9x
P/S 1.9x · near its 20-quarter median

Currently near its 20-quarter median.

P/B · 8.5x5y range 8.5x – 14.3x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.

Cash Burn

Watch

FCF turned negative in 2 of the last 8 quarters — occasional cash consumption.

Price & Volume
Market Cap $191.53B

Metrics at a Glance

as of September 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$98.24B
6Q
Q. Revenue
$25.27B
2Q
TTM EBITDA
$20.35B
4Q
TTM Op. Income
$15.05B
4Q
Q. Op. Income
$4.26B
2Q
TTM Net Income
$10.90B
4Q
Q. Net Income
$3.05B
2Q
EPS
$2.23
2Q
Shares Out.
$1.36B
2Q
$98.24B in TTM revenue grew 6.4% YoY, reaching $25.27B last quarter. TTM EBITDA of $20.35B and TTM operating income of $15.05B show growth is flowing through to the bottom line. TTM net income of $10.90B means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 6 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin
54.4%
2%
EBITDA Margin
20.4%
2Q
Op. Margin
16.9%
3Q
Net Margin
12.1%
11%
Op. margin of 16.9% is up 1.9% YoY — cost efficiency is improving. Net margin at 12.1% and gross margin of 54.4% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has risen for 3 consecutive quarters — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
17.6x
4Q
P/S Ratio
1.9x
2Q
P/B Ratio
8.5x
4Q
At 17.6x P/E, the stock trades within typical market levels. P/S of 1.9x and P/B of 8.5x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has fallen for 4 consecutive quarters — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$111.98B
5%
Cash
$10.68B
31%
Long-Term Debt
$42.66B
3Q
Book Value
$22.49B
7Q
D/E Ratio
1.9
4Q
Debt/EBITDA
8.3
2Q
With $111.98B in assets and $42.66B in long-term debt, D/E is 1.9and book value is $22.49B — moderate leverage. Across the last 8 quarters, debt/equity has fallen for 4 consecutive quarters — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$5.58B
2Q
TTM Free Cash Flow
$10.47B
4Q
FCF Margin
10.7%
4Q
FCF / Net Income
1.0
2%
TTM FCF of $10.47B on $5.58B in operating cash flow. The FCF / Net Income ratio of 1.0x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 4 consecutive quarters — an improving trend.

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· below its 20-quarter median

Currently below its 20-quarter median.