Question 1

What is PepsiCo's P/E ratio?

Accepted Answer

PepsiCo (PEP) P/E ratio is 17.7× as of July 22, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month earnings (net income), using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/E ratio calculated?

Accepted Answer

P/E = Share Price ÷ Trailing Twelve-Month (TTM) Diluted EPS, or equivalently Market Capitalisation ÷ TTM Net Income. All inputs are sourced from audited GAAP/IFRS filings and translated to USD using period-end exchange rates so the multiple is comparable across companies and currencies.

Question 3

What is the P/E ratio?

Accepted Answer

The price-to-earnings (P/E) ratio, also called the earnings multiple, measures how much investors pay per dollar of a company's trailing twelve-month (TTM) earnings. It is calculated as share price ÷ TTM diluted EPS (equivalent to market capitalisation ÷ TTM net income). A higher P/E implies the market is pricing in stronger future earnings growth or lower risk; a lower P/E can signal slower expected growth, higher risk, or potential undervaluation.

Question 4

What is a good P/E ratio for PepsiCo?

Accepted Answer

There is no universal "good" P/E. As a rule of thumb, the S&P 500 has historically averaged a P/E in the mid-to-high teens; mature, slow-growth businesses commonly trade in the 10–18× range, while high-growth or asset-light companies often trade at 25–50×+. What matters is the comparison to sector peers and to the company's own historical range. For PepsiCo specifically, the relevant sector benchmark is the current sector median of 22.6×.

Question 5

Is PepsiCo's P/E ratio high or low?

Accepted Answer

PepsiCo's P/E ratio of 17.7× is below its own 5-year average of 25.9× and below the sector median of 22.6×. That places the current reading at the 0th percentile of its 10-year history. A higher multiple usually reflects stronger expected growth, lower perceived risk, or higher returns on capital; a lower multiple reflects the opposite.

Question 6

What is PepsiCo's historical P/E ratio range?

Accepted Answer

In the available daily series, PepsiCo (PEP) P/E ratio has ranged from a low of 12.4× in 2018 to a high of 41.2× in 2023. The 5-year average is 25.9× and the 5-year median is 25.0×.

Question 7

What was PepsiCo's P/E ratio in 2025?

Accepted Answer

PepsiCo (PEP) P/E ratio at the end of 2025 was 23.9×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month earnings figure available at that date.

Question 8

Why does PepsiCo's P/E ratio change over time?

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (earnings). Share-price changes — driven by interest rates, earnings expectations, risk appetite, and broader market sentiment — typically dominate short-term moves, while changes in the underlying fundamental drive the longer-term trend. As a result, the ratio can rise during stock-price rallies even if the business itself has not become more valuable, and fall during sell-offs even when fundamentals are improving.


2025	$197B	$8.24B	23.9×	+2.1×	Dec 27, 2025
2024	$209B	$9.58B	21.8×	-3.9×	Dec 31, 2024
2023	$233B	$9.07B	25.7×	-2.2×	Dec 31, 2023
2022	$249B	$8.91B	27.9×	-3.6×	Dec 31, 2022
2021	$240B	$7.62B	31.5×	+2.8×	Dec 31, 2021
2020	$205B	$7.12B	28.7×	+2.8×	Dec 31, 2020
2019	$190B	$7.31B	26.0×	+13.5×	Dec 31, 2019
2018	$156B	$12.5B	12.4×	-22.6×	Dec 31, 2018
2017	$170B	$4.86B	35.1×	+11.5×	Dec 31, 2017
2016	$149B	$6.33B	23.6×	-2.9×	Dec 31, 2016
2015	$145B	$5.45B	26.5×	+4.9×	Dec 31, 2015
2014	$141B	$6.51B	21.6×	+2.8×	Dec 31, 2014
2013	$127B	$6.74B	18.8×	+1.7×	Dec 31, 2013
2012	$106B	$6.18B	17.1×	+0.9×	Dec 31, 2012
2011	$105B	$6.44B	16.2×	-0.1×	Dec 31, 2011
2010	$103B	$6.32B	16.3×	+0.4×	Dec 31, 2010
2009	$94.9B	$5.95B	16.0×	-0.5×	Dec 31, 2009
2008	$84.7B	$5.14B	16.5×	-5.1×	Dec 31, 2008
2007	$122B	$5.66B	21.6×	+3.4×	Dec 31, 2007
2006	$102B	$5.6B	18.2×	-6.1×	Dec 31, 2006
2005	$99B	$4.08B	24.3×	+3.6×	Dec 31, 2005
2004	$86.9B	$4.21B	20.6×	-2.0×	Dec 31, 2004
2003	$79.4B	$3.5B	22.7×	+0.7×	Dec 31, 2003
2002	$73B	$3.32B	22.0×	—	Dec 31, 2002


Monster Beverage (MNST)	34.9×
Colgate-Palmolive (CL)	32.8×
Archer-Daniels-Midland (ADM)	32.5×
Tootsie Roll Industries (TR)	32.2×
Church & Dwight Co. (CHD)	30.1×
Mondelez International (MDLZ)	28.5×
Hormel Foods (HRL)	25.3×
Coca-Cola (KO)	24.1×
Sysco (SYY)	22.6×
Lamb Weston (LW)	21.9×
Marzetti (MZTI)	21.5×
Procter & Gamble (PG)	20.9×
Kenvue (KVUE)	20.4×
Keurig Dr Pepper (KDP)	19.5×
Target (TGT)	17.0×
Clorox (CLX)	16.6×
Brown-Forman (BF-B)	16.5×
Dollar General (DG)	16.1×
Kimberly-Clark (KMB)	15.1×
Dollar Tree (DLTR)	14.5×
Altria Group (MO)	13.7×
Constellation Brands (STZ)	12.9×
Coca-Cola Europacific Partners (CCEP)	10.9×
Campbell Soup (CPB)	10.0×
McCormick & Company (MKC)	7.7×

P/E Ratio for PepsiCo (PEP) 2002-2026

P/E Ratio daily chart for PepsiCo (PEP)

Historical P/E Ratio for PepsiCo (PEP) from 2002 to 2025

About P/E Ratio at PepsiCo (PEP)

PepsiCo P/E Ratio by Year

PepsiCo P/E Ratio 2025: 23.9×

PepsiCo P/E Ratio 2024: 21.8×

PepsiCo P/E Ratio 2023: 25.7×

PepsiCo P/E Ratio 2022: 27.9×

PepsiCo P/E Ratio 2021: 31.5×

Sector peers by P/E Ratio — chart

Sector peers by P/E Ratio — table

Frequently asked questions

PepsiCo (PEP) Key Financials