PepsiCo, Inc. (PEP) P/E Ratio History
UndervaluedTrading at 21.7x vs 5Y avg 26.0x · 10th percentile · Below historical baseline · Data 1990–2026
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P/E Ratio Analysis
As of September 24, 2026, PepsiCo, Inc. (PEP) trades at a price-to-earnings ratio of 21.7x, with a stock price of $130.18 and trailing twelve-month earnings per share of $7.66.
The current P/E is 17% below its 5-year average of 26.0x. Over the past five years, PEP's P/E has ranged from a low of 18.9x to a high of 37.7x, placing the current valuation at the 10th percentile of its historical range.
Compared to the Consumer Defensive sector median P/E of 18.9x, PEP is roughly in line with its sector peers. The sector includes 147 companies with P/E ratios ranging from 0.1x to 197.7x.
The PEG ratio of 6.65 (P/E divided by -14% EPS growth) suggests the stock may be expensive relative to its earnings growth. Peter Lynch popularized the rule that a PEG below 1.0 indicates an attractive entry point.
Relative to the broader market, PEP trades roughly in line with the S&P 500 median P/E of 25.3x. Investors should consider the company's growth prospects, competitive position, and earnings quality when evaluating whether the current valuation is justified.
For a comprehensive intrinsic value estimate using discounted cash flow analysis, see our PEP DCF Valuation Calculator →
Note: P/E ratio is just one valuation metric. It does not account for balance sheet strength, cash flow quality, or growth sustainability. Always conduct comprehensive due diligence before making investment decisions.
PEP Cross-Benchmark Valuation
How does the current P/E compare to sector peers and the broader market?
PEP P/E vs Peers
Global Soft Drink Brand Owners peers sorted by market cap
| Company | Market Cap | P/E Ratio | PEG Ratio | EPS Growth (1Y) |
|---|---|---|---|---|
| $379B | 29.0 | 2.59 | +24% | |
| $78B | 32.5 | - | -45% | |
| $6B | 10.1Lowest | - | +6% | |
| $11B | 22.9 | - | -41% | |
| $43B | 20.8 | 1.98Best | +46%Best | |
| $86B | 45.3 | 5.65 | +30% | |
| $7B | 116.7 | 2.50 | -44% |
Lower P/E can signal a discount or weaker growth expectations; PEG adds growth context.
PEP Historical P/E Data (1990–2026)
Quarterly P/E ratios calculated from closing price and TTM EPS
| Quarter | Period End | Price | TTM EPS | P/E Ratio | vs Avg |
|---|---|---|---|---|---|
| FY2026 Q2 | Jun 13 2026 | $144.27 | $7.63 | 18.9x | -26% |
| FY2026 Q1 | Mar 21 2026 | $150.04 | $6.37 | 23.6x | -8% |
| FY2025 Q4 | Dec 27 2025 | $143.78 | $6.00 | 24.0x | -6% |
| FY2025 Q3 | Sep 06 2025 | $146.39 | $5.26 | 27.8x | +9% |
| FY2025 Q2 | Jun 14 2025 | $130.85 | $5.49 | 23.8x | -7% |
| FY2025 Q1 | Mar 22 2025 | $145.45 | $6.80 | 21.4x | -16% |
| FY2024 Q4 | - | $152.06 | $6.95 | 21.9x | -14% |
| FY2024 Q3 | Sep 07 2024 | $177.34 | $6.78 | 26.2x | +2% |
| FY2024 Q2 | Jun 15 2024 | $163.81 | $6.89 | 23.8x | -7% |
| FY2024 Q1 | Mar 23 2024 | $172.02 | $6.65 | 25.9x | +1% |
| FY2023 Q4 | Dec 31 2023 | $169.84 | $6.57 | 25.9x | +1% |
| FY2023 Q3 | Sep 09 2023 | $176.27 | $6.00 | 29.4x | +15% |
| FY2023 Q2 | Jun 17 2023 | $186.04 | $5.71 | 32.6x | +28% |
| FY2023 Q1 | Mar 25 2023 | $179.09 | $4.75 | 37.7x | +48% |
| FY2022 Q4 | Dec 31 2022 | $180.66 | $6.41 | 28.2x | +10% |
| FY2022 Q3 | Sep 03 2022 | $170.66 | $6.99 | 24.4x | -4% |
| FY2022 Q2 | Jun 11 2022 | $162.52 | $6.64 | 24.5x | -4% |
| FY2022 Q1 | Mar 19 2022 | $162.79 | $7.31 | 22.3x | -13% |
| FY2021 Q4 | Dec 31 2021 | $173.71 | $5.49 | 31.6x | +24% |
| FY2021 Q3 | Sep 04 2021 | $157.09 | $5.87 | 26.8x | +5% |
| FY2021 Q2 | Jun 12 2021 | $147.69 | $5.92 | 24.9x | -2% |
| FY2021 Q1 | Mar 20 2021 | $134.50 | $5.40 | 24.9x | -2% |
| FY2020 Q4 | - | $148.30 | $5.12 | 29.0x | +13% |
| FY2020 Q3 | Sep 05 2020 | $138.76 | $5.05 | 27.5x | +8% |
| FY2020 Q2 | Jun 13 2020 | $129.00 | $4.89 | 26.4x | +3% |
| FY2020 Q1 | Mar 21 2020 | $103.93 | $5.15 | 20.2x | -21% |
| FY2019 Q4 | - | $136.67 | $5.19 | 26.3x | +3% |
| FY2019 Q3 | Sep 07 2019 | $137.37 | $8.76 | 15.7x | -39% |
| FY2019 Q2 | Jun 15 2019 | $132.73 | $9.02 | 14.7x | -42% |
| FY2019 Q1 | Mar 23 2019 | $120.72 | $8.86 | 13.6x | -47% |
| FY2018 Q4 | Dec 31 2018 | $110.48 | $8.80 | 12.6x | -51% |
| FY2018 Q3 | Sep 08 2018 | $112.74 | $3.47 | 32.5x | +27% |
| FY2018 Q2 | Jun 16 2018 | $107.61 | $3.21 | 33.5x | +31% |
| FY2018 Q1 | Mar 24 2018 | $106.15 | $3.39 | 31.3x | +23% |
| FY2017 Q4 | Dec 31 2017 | $119.92 | $3.37 | 35.6x | +39% |
| FY2017 Q3 | Sep 09 2017 | $115.04 | $4.84 | 23.8x | -7% |
| FY2017 Q2 | Jun 17 2017 | $116.86 | $4.72 | 24.8x | -3% |
| FY2017 Q1 | Mar 25 2017 | $112.12 | $4.64 | 24.2x | -5% |
| FY2016 Q4 | Dec 31 2016 | $104.63 | $4.36 | 24.0x | -6% |
| FY2016 Q3 | Sep 03 2016 | $107.87 | $4.56 | 23.7x | -7% |
| FY2016 Q2 | Jun 11 2016 | $103.31 | $3.55 | 29.1x | +14% |
| FY2016 Q1 | Mar 19 2016 | $101.29 | $3.50 | 28.9x | +13% |
| FY2015 Q4 | - | $99.92 | $3.67 | 27.2x | +7% |
| FY2015 Q3 | Sep 05 2015 | $90.92 | $3.37 | 27.0x | +6% |
| FY2015 Q2 | Jun 13 2015 | $93.74 | $4.33 | 21.6x | -15% |
| FY2015 Q1 | Mar 21 2015 | $95.34 | $4.29 | 22.2x | -13% |
| FY2014 Q4 | Dec 31 2014 | $94.56 | $4.27 | 22.1x | -13% |
| FY2014 Q3 | Sep 06 2014 | $91.75 | $4.52 | 20.3x | -20% |
| FY2014 Q2 | Jun 14 2014 | $87.19 | $4.43 | 19.7x | -23% |
| FY2014 Q1 | Mar 22 2014 | $82.14 | $4.42 | 18.6x | -27% |
| FY2013 Q4 | - | $82.94 | $4.32 | 19.2x | -25% |
| FY2013 Q3 | Sep 07 2013 | $79.26 | $4.26 | 18.6x | -27% |
| FY2013 Q2 | Jun 15 2013 | $82.13 | $4.24 | 19.4x | -24% |
| FY2013 Q1 | Mar 23 2013 | $78.64 | $3.90 | 20.2x | -21% |
| FY2012 Q4 | Dec 31 2012 | $68.43 | $3.92 | 17.5x | -32% |
| FY2012 Q3 | Sep 08 2012 | $72.10 | $3.75 | 19.2x | -25% |
| FY2012 Q2 | Jun 16 2012 | $69.48 | $3.79 | 18.3x | -28% |
| FY2012 Q1 | Mar 24 2012 | $65.30 | $4.02 | 16.2x | -36% |
| FY2011 Q4 | Dec 31 2011 | $66.35 | $4.02 | 16.5x | -35% |
| FY2011 Q3 | Sep 03 2011 | $63.30 | $3.98 | 15.9x | -38% |
| FY2011 Q2 | Jun 11 2011 | $68.69 | $3.92 | 17.5x | -31% |
| FY2011 Q1 | Mar 19 2011 | $63.24 | $3.73 | 17.0x | -34% |
| FY2010 Q4 | Dec 31 2010 | $65.33 | $3.91 | 16.7x | -35% |
| FY2010 Q3 | Sep 04 2010 | $65.57 | $3.96 | 16.6x | -35% |
| FY2010 Q2 | Jun 12 2010 | $63.56 | $3.86 | 16.5x | -35% |
| FY2010 Q1 | Mar 20 2010 | $66.56 | $3.94 | 16.9x | -34% |
| FY2009 Q4 | - | $60.80 | $3.77 | 16.1x | -37% |
| FY2009 Q3 | Sep 05 2009 | $57.54 | $3.33 | 17.3x | -32% |
| FY2009 Q2 | Jun 13 2009 | $53.65 | $3.23 | 16.6x | -35% |
| FY2009 Q1 | Mar 21 2009 | $50.02 | $3.22 | 15.5x | -39% |
| FY2008 Q4 | Dec 31 2008 | $54.77 | $3.20 | 17.1x | -33% |
| FY2008 Q3 | Sep 06 2008 | $68.92 | $3.50 | 19.7x | -23% |
| FY2008 Q2 | Jun 14 2008 | $67.54 | $3.57 | 18.9x | -26% |
| FY2008 Q1 | Mar 22 2008 | $71.19 | $3.45 | 20.6x | -19% |
| FY2007 Q4 | Dec 31 2007 | $75.90 | $3.40 | 22.3x | -13% |
| FY2007 Q3 | Sep 08 2007 | $67.98 | $3.72 | 18.3x | -28% |
| FY2007 Q2 | Jun 16 2007 | $66.68 | $3.55 | 18.8x | -26% |
| FY2007 Q1 | Mar 24 2007 | $64.09 | $3.43 | 18.7x | -27% |
| FY2006 Q4 | Dec 31 2006 | $62.55 | $3.34 | 18.7x | -27% |
| FY2006 Q3 | Sep 09 2006 | $64.73 | $2.91 | 22.2x | -13% |
| FY2006 Q2 | Jun 17 2006 | $59.70 | $2.53 | 23.6x | -8% |
| FY2006 Q1 | Mar 25 2006 | $59.34 | $2.42 | 24.5x | -4% |
| FY2005 Q4 | Dec 31 2005 | $59.08 | $2.39 | 24.7x | -3% |
| FY2005 Q3 | Sep 03 2005 | $54.65 | $2.32 | 23.6x | -8% |
| FY2005 Q2 | Jun 11 2005 | $55.52 | $2.60 | 21.4x | -16% |
| FY2005 Q1 | Mar 19 2005 | $52.62 | $2.51 | 21.0x | -18% |
| FY2004 Q4 | Dec 31 2004 | $52.20 | $2.44 | 21.4x | -16% |
| FY2004 Q3 | Sep 04 2004 | $50.84 | $2.27 | 22.4x | -12% |
| FY2004 Q2 | Jun 12 2004 | $54.95 | $2.10 | 26.2x | +3% |
| FY2004 Q1 | Mar 20 2004 | $50.93 | $2.03 | 25.1x | -2% |
| FY2003 Q4 | Dec 31 2003 | $46.62 | $2.02 | 23.1x | -10% |
| FY2003 Q3 | - | $45.83 | $1.90 | 24.1x | -5% |
| FY2003 Q2 | Jun 14 2003 | $44.74 | $1.81 | 24.7x | -3% |
| FY2003 Q1 | Mar 22 2003 | $41.50 | $1.75 | 23.7x | -7% |
| FY2002 Q4 | - | $42.22 | $1.68 | 25.1x | -2% |
| FY2002 Q3 | Sep 07 2002 | $37.99 | $1.76 | 21.6x | -15% |
| FY2002 Q2 | Jun 15 2002 | $50.90 | $1.57 | 32.4x | +27% |
| FY2002 Q1 | Mar 23 2002 | $50.90 | $1.53 | 33.3x | +30% |
| FY2001 Q4 | Dec 31 2001 | $48.69 | $1.47 | 33.1x | +30% |
| FY2001 Q3 | Sep 08 2001 | $47.40 | $1.43 | 33.1x | +30% |
| FY2001 Q2 | Jun 16 2001 | $43.26 | $1.51 | 28.6x | +12% |
| FY2001 Q1 | Mar 24 2001 | $43.85 | $1.45 | 30.2x | +18% |
| FY2000 Q4 | Dec 31 2000 | $49.56 | $1.42 | 34.9x | +37% |
| FY2000 Q3 | Sep 02 2000 | $42.31 | $1.42 | 29.8x | +17% |
| FY2000 Q2 | Jun 10 2000 | $41.25 | $1.32 | 31.3x | +22% |
| FY2000 Q1 | Mar 18 2000 | $33.00 | $1.43 | 23.1x | -10% |
| FY1999 Q4 | Dec 31 1999 | $35.25 | $1.36 | 25.9x | +2% |
| FY1999 Q3 | Sep 04 1999 | $34.63 | $1.27 | 27.3x | +7% |
| FY1999 Q2 | Jun 12 1999 | $35.38 | $1.45 | 24.4x | -4% |
| FY1999 Q1 | Mar 20 1999 | $39.94 | $1.29 | 31.0x | +21% |
| FY1998 Q4 | - | $40.88 | $1.31 | 31.2x | +22% |
| FY1998 Q3 | Sep 05 1998 | $30.94 | $1.33 | 23.3x | -9% |
| FY1998 Q2 | Jun 13 1998 | $40.69 | $1.25 | 32.6x | +28% |
| FY1998 Q1 | Mar 21 1998 | $43.00 | $1.34 | 32.1x | +26% |
| FY1997 Q4 | Dec 31 1997 | $36.25 | $1.37 | 26.5x | +4% |
| FY1997 Q3 | Sep 06 1997 | $37.50 | $1.14 | 32.9x | +29% |
| FY1997 Q2 | Jun 14 1997 | $39.00 | $0.81 | 48.1x | +89% |
| FY1997 Q1 | Mar 22 1997 | $32.50 | $0.75 | 43.3x | +70% |
| FY1996 Q4 | - | $29.25 | $0.72 | 40.6x | +59% |
| FY1996 Q3 | Sep 07 1996 | $28.50 | $0.80 | 35.6x | +40% |
| FY1996 Q2 | Jun 15 1996 | $33.13 | $1.10 | 30.1x | +18% |
| FY1996 Q1 | Mar 23 1996 | $31.63 | $1.05 | 30.1x | +18% |
| FY1995 Q4 | Dec 31 1995 | $27.94 | $1.01 | 27.7x | +8% |
| FY1995 Q3 | Sep 09 1995 | $22.88 | $1.22 | 18.8x | -27% |
| FY1995 Q2 | Jun 17 1995 | $23.31 | $1.17 | 19.9x | -22% |
| FY1995 Q1 | Mar 25 1995 | $20.13 | $1.14 | 17.7x | -31% |
| FY1994 Q4 | Dec 31 1994 | $18.13 | $1.09 | 16.6x | -35% |
| FY1994 Q3 | Sep 30 1994 | $16.56 | $1.04 | 15.9x | -38% |
| FY1994 Q2 | - | $15.31 | $0.98 | 15.6x | -39% |
| FY1994 Q1 | - | $18.31 | $0.97 | 18.9x | -26% |
| FY1993 Q4 | Dec 31 1993 | $20.44 | $0.98 | 20.9x | -18% |
| FY1993 Q3 | - | $19.63 | $0.28 | 70.1x | +175% |
| FY1993 Q2 | Jun 30 1993 | $18.50 | $0.27 | 68.5x | +168% |
| FY1993 Q1 | Mar 31 1993 | $21.44 | $0.24 | 89.3x | +250% |
| FY1992 Q4 | - | $20.75 | $0.23 | 90.2x | +253% |
| FY1992 Q3 | Sep 30 1992 | $18.94 | $0.83 | 22.8x | -11% |
| FY1992 Q2 | - | $17.44 | $0.74 | 23.6x | -8% |
| FY1992 Q1 | - | $17.13 | $0.70 | 24.5x | -4% |
| FY1991 Q4 | - | $16.94 | $0.68 | 24.9x | -2% |
| FY1991 Q3 | Sep 30 1991 | $14.25 | $0.68 | 21.0x | -18% |
| FY1991 Q2 | Jun 30 1991 | $14.50 | $0.71 | 20.4x | -20% |
| FY1991 Q1 | Mar 31 1991 | $17.13 | $0.69 | 24.8x | -3% |
| FY1990 Q4 | Dec 31 1990 | $13.00 | $0.68 | 19.1x | -25% |
| FY1990 Q3 | Sep 30 1990 | $11.50 | $0.64 | 18.0x | -30% |
| FY1990 Q2 | Jun 30 1990 | $12.94 | $0.60 | 21.6x | -16% |
Average P/E for displayed period: 25.5x
PEP Chart Terminal
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PEP Stock Analysis
Bull/bear thesis, analyst target revisions, and earnings execution.
Intrinsic Valuation
DCF models, multiple analysis, and analyst estimates.
Historical Returns
36+ years return with dividends reinvested.
Peer Comparison
Compare growth, multiples, and margins vs sector.
PEP — Frequently Asked Questions
Quick answers to the most common questions about buying PEP stock.
What is PEP's P/E ratio?
PepsiCo, Inc. (PEP) trailing twelve-month P/E ratio is 21.7x, based on TTM diluted EPS of $7.66. The 5-year average P/E is 26.0x and the historical range spans 18.9x to 37.7x.
Is PEP stock overvalued or undervalued?
PEP trades at 21.7x P/E, near its 5-year average of 26.0x. The 10th percentile ranking within the 18.9x–37.7x historical range places valuation within normal bounds.
Is PEP stock expensive?
PEP is fairly valued relative to its own history. The current P/E of 21.7x is near the 5-year average of 26.0x (10th percentile of historical range).
What is PEP's historical P/E range?
Over the past 5 years, PEP's P/E ratio has ranged from 18.9x to 37.7x, with a median of 25.9x and an average of 26.0x. The current P/E of 21.7x places the stock at the 10th percentile of this range. Full historical data spans 1990–2026.
How does PEP's P/E compare to the S&P 500?
PEP trades at 21.7x P/E versus the S&P 500 median of 25.3x. The 14% discount to the market suggests lower growth expectations or perceived higher risk.
How does PEP's valuation compare to Consumer Defensive peers?
PepsiCo, Inc. P/E of 21.7x compares to the Consumer Defensive sector median of 18.9x. The premium reflects expected growth above peers or stronger fundamentals. See the peer comparison table on this page for ticker-by-ticker P/E and PEG.
What is PEP's PEG ratio?
PEP PEG ratio is 6.65, based on a P/E of 21.7x and EPS growth of -13.7%. A PEG above 2.0 indicates a premium valuation relative to earnings growth — typically considered expensive.
What is PEP's earnings yield?
PEP earnings yield is 4.61%, the inverse of its 21.7x P/E ratio. Earnings yield represents the percentage of each dollar invested that the company earns. It can be compared directly to bond yields to assess relative attractiveness of stocks versus fixed income.