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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
$133.38-0.96(-0.01%)Market open
Market Cap
$183.51B
P/E
17.6x
P/S
1.9x
P/B
8.2x

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: 81/100

Strongest: Profitability (23/25); weakest: Balance Sheet & Red Flags (14/25).

Profitability23/25
Growth21/25
Balance Sheet & Red Flags14/25
Cash & Earnings Quality23/25
Strengths
Rising free cash flowHigh ROERising earningsInterest easily covered

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 – 37.5x
P/E 17.6x · below its 20-quarter median

Currently below its 20-quarter median.

P/S · 1.9x5y range 1.9x – 3.0x
P/S 1.9x · below its 20-quarter median

Currently below its 20-quarter median.

P/B · 8.2x5y range 8.2x – 14.5x

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 $183.51B

Metrics at a Glance

as of June 2026

Revenue & Profit

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

TTM Revenue
$96.90B
5Q
Q. Revenue
$24.18B
6%
TTM EBITDA
$19.59B
3Q
TTM Op. Income
$14.36B
3Q
Q. Op. Income
$4.02B
125%
TTM Net Income
$10.45B
3Q
Q. Net Income
$2.98B
136%
EPS
$2.18
137%
Shares Out.
$1.37B
0%
$96.90B in TTM revenue grew 5.6% YoY, reaching $24.18B last quarter. TTM EBITDA of $19.59B and TTM operating income of $14.36B show growth is flowing through to the bottom line. TTM net income of $10.45B means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 5 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin
54.2%
1%
EBITDA Margin
20.3%
78%
Op. Margin
16.6%
2Q
Net Margin
12.3%
2Q
Op. margin of 16.6% is up 8.8% YoY — cost efficiency is improving. Net margin at 12.3% and gross margin of 54.2% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has risen for 2 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
3Q
P/S Ratio
1.9x
3%
P/B Ratio
8.2x
3Q
At 17.6x P/E, the stock trades within typical market levels. P/S of 1.9x and P/B of 8.2x 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 3 consecutive quarters — an improving trend.

Assets & Liabilities

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

Total Assets
$112.19B
6Q
Cash
$10.25B
34%
Long-Term Debt
$42.61B
2Q
Book Value
$22.27B
6Q
D/E Ratio
1.9
3Q
Debt/EBITDA
8.7
43%
With $112.19B in assets and $42.61B in long-term debt, D/E is 1.9and book value is $22.27B — moderate leverage. Across the last 8 quarters, debt/equity has fallen for 3 consecutive quarters — an improving trend.

Cash Flow

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

Op. Cash Flow
$2.32B
18%
TTM Free Cash Flow
$9.28B
3Q
FCF Margin
9.6%
3Q
FCF / Net Income
0.9
5%
TTM FCF of $9.28B on $2.32B in operating cash flow. The FCF / Net Income ratio of 0.9x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 3 consecutive quarters — an improving trend.

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· below its 20-quarter median

Currently below its 20-quarter median.