Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
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PepsiCo Inc. pages available for free this week:
- Income Statement
- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Current Ratio since 2005
- Price to Earnings (P/E) since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Debt
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Current Valuation Ratios
PepsiCo Inc., current price multiples
| PepsiCo Inc. | Coca-Cola Co. | Mondelēz International Inc. | Philip Morris International Inc. | Food, Beverage & Tobacco | Consumer Staples | ||||
|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||
| Current share price (P) | |||||||||
| No. shares of common stock outstanding | |||||||||
| Growth rate (g) | |||||||||
| Earnings per share (EPS) | |||||||||
| Next year expected EPS | |||||||||
| Operating profit per share | |||||||||
| Sales per share | |||||||||
| Book value per share (BVPS) | |||||||||
| Valuation Ratios (Price Multiples) | |||||||||
| Price to earnings (P/E) | |||||||||
| Price to next year expected earnings | |||||||||
| Price-earnings-growth (PEG) | |||||||||
| Price to operating profit (P/OP) | |||||||||
| Price to sales (P/S) | |||||||||
| Price to book value (P/BV) | |||||||||
Based on: 10-K (reporting date: 2025-12-27).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
PepsiCo Inc., historical price multiples
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).
Over the five-year period examined, the common stock valuation ratios demonstrate varying degrees of fluctuation. Generally, a declining trend is observable in most ratios through 2024, followed by some degree of stabilization or increase in the most recent year. This suggests a potential shift in investor sentiment or company performance relative to its valuation.
- Price to Earnings (P/E)
- The Price to Earnings ratio began at 30.58 and decreased to 20.55 by 2024, representing a substantial decline. However, the ratio increased to 27.01 in 2025. This volatility suggests changing expectations regarding future earnings growth. The initial decline could indicate investors becoming less willing to pay a premium for each dollar of earnings, while the 2025 increase may reflect renewed optimism.
- Price to Operating Profit (P/OP)
- The Price to Operating Profit ratio exhibited a consistent, though moderate, downward trend from 20.87 in 2021 to 15.27 in 2024. A subsequent increase to 19.36 in 2025 partially reversed this decline. This pattern mirrors the P/E ratio, indicating a relationship between earnings and operating profitability in influencing investor valuation. The ratio’s sensitivity to operating performance is evident.
- Price to Sales (P/S)
- The Price to Sales ratio showed a steady decrease from 2.93 to 2.14 between 2021 and 2024. This indicates investors were paying less for each dollar of revenue generated by the company. The ratio then increased slightly to 2.37 in 2025, but remained below the levels observed in earlier years. This suggests a potential shift in revenue growth expectations or a change in the market’s assessment of the company’s revenue quality.
- Price to Book Value (P/BV)
- The Price to Book Value ratio demonstrated the most consistent decline, decreasing from 14.52 in 2021 to 10.91 in 2024, and remaining constant at 10.91 in 2025. This suggests a decreasing premium investors are willing to pay for the company’s net asset value. The sustained decline could indicate concerns about the efficiency with which the company utilizes its assets or a reassessment of its long-term growth prospects.
In summary, the valuation ratios generally decreased through 2024, potentially reflecting a period of reduced investor confidence or changing market conditions. The partial recovery observed in 2025 warrants further investigation to determine if this represents a sustained trend or a temporary fluctuation.
Price to Earnings (P/E)
PepsiCo Inc., historical P/E calculation, comparison to benchmarks
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net income attributable to PepsiCo (in millions) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| Philip Morris International Inc. | ||||||
| P/E Ratio, Sector | ||||||
| Food, Beverage & Tobacco | ||||||
| P/E Ratio, Industry | ||||||
| Consumer Staples | ||||||
Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
EPS = Net income attributable to PepsiCo ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of PepsiCo Inc. Annual Report.
4 2025 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The price to earnings (P/E) ratio exhibited fluctuations over the five-year period. Initially, the P/E ratio decreased from 30.58 in 2021 to 26.71 in 2022, indicating a potential shift in investor sentiment or earnings growth expectations relative to the share price.
- P/E Ratio Trend
- The P/E ratio continued a downward trajectory in 2023, reaching 25.40. This decline suggests either a slower rate of earnings growth or a decrease in investor willingness to pay a premium for each dollar of earnings. A more pronounced decrease was observed in 2024, with the P/E ratio falling to 20.55, representing the lowest value within the observed timeframe. This substantial reduction could be attributed to various factors, including broader market conditions, company-specific challenges, or revised earnings forecasts.
- However, the P/E ratio experienced an increase in 2025, rising to 27.01. This suggests a renewed investor confidence or an anticipated improvement in future earnings potential. The increase partially reverses the decline seen in the prior year, but remains below the levels observed in 2021 and 2022.
The share price demonstrated volatility, moving from US$168.37 in 2021 to US$172.78 in 2022, before decreasing to US$167.67 in 2023 and a more significant drop to US$143.49 in 2024. A subsequent recovery was noted in 2025, with the share price reaching US$162.85.
- EPS and P/E Relationship
- Earnings per share (EPS) generally increased from US$5.51 in 2021 to US$6.60 in 2023. The decrease in the P/E ratio during this period, despite rising EPS, indicates that the share price did not increase at the same rate as earnings. The EPS continued to rise in 2024 to US$6.98, but the P/E ratio fell sharply, suggesting a significant correction in the share price relative to earnings. The decrease in EPS to US$6.03 in 2025, coupled with a rising P/E ratio, indicates that investors were willing to pay more for each dollar of earnings despite the lower earnings figure.
In summary, the P/E ratio experienced a period of decline followed by a partial recovery, mirroring fluctuations in the share price and influenced by changes in earnings per share. The most significant decrease in the P/E ratio occurred in 2024, coinciding with the lowest share price observed during the period.
Price to Operating Profit (P/OP)
PepsiCo Inc., historical P/OP calculation, comparison to benchmarks
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating profit (in millions) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| Philip Morris International Inc. | ||||||
| P/OP Ratio, Sector | ||||||
| Food, Beverage & Tobacco | ||||||
| P/OP Ratio, Industry | ||||||
| Consumer Staples | ||||||
Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Operating profit per share = Operating profit ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of PepsiCo Inc. Annual Report.
4 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
The Price to Operating Profit (P/OP) ratio exhibited fluctuations over the five-year period. Initially, the ratio demonstrated relative stability before experiencing a notable decline and subsequent partial recovery.
- Overall Trend
- The P/OP ratio began at 20.87 in 2021 and decreased to a low of 15.27 in 2024, before increasing to 19.36 in 2025. This indicates a period of decreasing valuation relative to operating profit, followed by a rebound in the most recent year.
- Year-over-Year Changes
- From 2021 to 2022, the P/OP ratio decreased slightly from 20.87 to 20.67. A further decrease was observed from 2022 to 2023, moving to 19.23. The most significant change occurred between 2023 and 2024, with the ratio falling to 15.27. Finally, the ratio increased from 15.27 in 2024 to 19.36 in 2025.
- Relationship to Operating Profit per Share
- The decrease in the P/OP ratio from 2023 to 2024 coincided with an increase in operating profit per share, from US$8.72 to US$9.40. This suggests that the decline in the ratio was not driven by a deterioration in operating profitability, but rather by a more substantial decrease in the share price. The subsequent increase in the P/OP ratio in 2025 occurred alongside a decrease in operating profit per share, from US$9.40 to US$8.41, indicating the share price recovery contributed to the ratio’s increase.
- Share Price Influence
- The share price experienced a decline from US$167.67 in 2023 to US$143.49 in 2024, which likely contributed significantly to the reduction in the P/OP ratio during that period. The share price then recovered to US$162.85 in 2025, partially offsetting the earlier decline in the ratio.
In summary, the P/OP ratio’s movement appears to be strongly influenced by fluctuations in the share price, with operating profit per share playing a secondary role in the observed trends.
Price to Sales (P/S)
PepsiCo Inc., historical P/S calculation, comparison to benchmarks
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net revenue (in millions) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| Philip Morris International Inc. | ||||||
| P/S Ratio, Sector | ||||||
| Food, Beverage & Tobacco | ||||||
| P/S Ratio, Industry | ||||||
| Consumer Staples | ||||||
Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Sales per share = Net revenue ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of PepsiCo Inc. Annual Report.
4 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
The price-to-sales ratio exhibited a generally decreasing trend over the observed period, with some fluctuation. Initial values indicate a ratio of 2.93 in 2021, followed by a decline to 2.75 in 2022, and continuing to 2.52 in 2023. A more pronounced decrease was noted in 2024, with the ratio falling to 2.14. The most recent observation in 2025 shows a slight increase to 2.37, but remains below the levels recorded in earlier years.
- Price-to-Sales Ratio Trend
- The price-to-sales ratio decreased from 2.93 in 2021 to a low of 2.14 in 2024, representing a cumulative decline of approximately 27.3%. This suggests that the market valuation of each dollar of sales decreased over this timeframe. The modest increase in 2025 may indicate a stabilization or a slight re-evaluation by investors.
- Share Price and Sales per Share Relationship
- While the price-to-sales ratio decreased, share price and sales per share generally moved in opposite directions. Share price decreased from US$168.37 in 2021 to US$143.49 in 2024 before recovering to US$162.85 in 2025. Simultaneously, sales per share increased consistently from US$57.45 in 2021 to US$68.73 in 2025. This divergence contributed to the observed decline in the price-to-sales ratio.
The decrease in the price-to-sales ratio, coupled with increasing sales per share, could suggest that the market perceived the company’s growth in sales as not fully justifying its share price, at least until the slight recovery observed in 2025. Further investigation into the reasons behind the share price fluctuations and the company’s profitability would be necessary to provide a more comprehensive assessment.
Price to Book Value (P/BV)
PepsiCo Inc., historical P/BV calculation, comparison to benchmarks
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Total PepsiCo common shareholders’ equity (in millions) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| Philip Morris International Inc. | ||||||
| P/BV Ratio, Sector | ||||||
| Food, Beverage & Tobacco | ||||||
| P/BV Ratio, Industry | ||||||
| Consumer Staples | ||||||
Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
BVPS = Total PepsiCo common shareholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of PepsiCo Inc. Annual Report.
4 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The price-to-book value ratio exhibited a declining trend over the five-year period. Initially at 14.52 in 2021, the ratio decreased to 10.91 by 2024 and remained constant through 2025.
- Price-to-Book Value (P/BV) Trend
- The P/BV ratio experienced a consistent decrease from 2021 to 2024. This suggests a relative decline in the market’s valuation of the company’s net assets compared to its share price. The stabilization at 10.91 in 2024 and 2025 indicates a potential leveling off of this valuation adjustment.
The share price demonstrated volatility during the observed period. It increased slightly from 2021 to 2022, then decreased in 2023, experienced a more substantial decline in 2024, and recovered partially in 2025.
- Share Price and Book Value Per Share Relationship
- While the share price fluctuated, the book value per share generally increased from 2021 to 2025. This increasing book value, coupled with the decreasing P/BV ratio, suggests that the market’s assessment of the company’s intrinsic value, as reflected in its share price, did not keep pace with the growth in its net asset value.
The book value per share showed a steady upward trend throughout the period, increasing from US$11.60 in 2021 to US$14.93 in 2025. This indicates consistent growth in the company’s net asset base.
- P/BV and Underlying Components
- The observed decrease in the P/BV ratio is attributable to a combination of factors: a fluctuating share price and a consistently increasing book value per share. The relative weighting of these factors shifted over time, contributing to the overall downward trend in the ratio.
The ratio reached its lowest point in both 2024 and 2025, suggesting that, relative to its net asset value, the market assigned a lower valuation to the company during those years compared to earlier in the period.