PepsiCo, Inc. (PEP) P/E Ratio History
Historical price-to-earnings valuation from 1990 to 2025
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Valuation Context
How does the current P/E compare to historical and market benchmarks?
P/E Ratio Analysis
As of March 1, 2026, PepsiCo, Inc. (PEP) trades at a price-to-earnings ratio of 28.3x, with a stock price of $169.74 and trailing twelve-month earnings per share of $6.01.
The current P/E is roughly in line with its 5-year average of 26.4x. Over the past five years, PEP's P/E has ranged from a low of 21.4x to a high of 37.7x, placing the current valuation at the 80th percentile of its historical range.
Compared to the Consumer Defensive sector median P/E of 21.6x, PEP trades at a 31% premium to its sector peers. The sector includes 150 companies with P/E ratios ranging from 0.0x to 195.7x.
The PEG ratio of 8.67 (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 26.2x. 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.
Peer Comparison
P/E metrics vs. Global Soft Drink Brand Owners peers
| Company | Market Cap | P/E Ratio | PEG Ratio | EPS Growth (1Y) |
|---|---|---|---|---|
KOThe Coca-Cola Company | $351B | 26.8 | 2.40Best | +24%Best |
PEPPepsiCo, Inc. | $232B | 28.3 | 8.67 | -14% |
FIZZNational Beverage Corp. | $3B | 18.3Lowest | 2.46 | +5% |
Peers sorted by market capitalization. P/E below peers may indicate undervaluation or lower growth expectations. Consider PEG ratio for growth-adjusted comparison.
Historical P/E Data
Quarterly P/E ratios calculated from closing price and TTM EPS
| Quarter | Date | Price | TTM EPS | P/E Ratio | vs Avg |
|---|---|---|---|---|---|
| FY2025 Q4 | Sat Dec 27 2025 00:00:00 GM | $143.78 | $6.00 | 24.0x | -6% |
| FY2025 Q3 | Sat Sep 06 2025 00:00:00 GM | $146.39 | $5.26 | 27.8x | +9% |
| FY2025 Q2 | Sat Jun 14 2025 00:00:00 GM | $130.85 | $5.49 | 23.8x | -7% |
| FY2025 Q1 | Sat Mar 22 2025 00:00:00 GM | $145.45 | $6.80 | 21.4x | -16% |
| FY2024 Q4 | $152.06 | $6.95 | 21.9x | -14% | |
| FY2024 Q3 | Sat Sep 07 2024 00:00:00 GM | $177.34 | $6.78 | 26.2x | +2% |
| FY2024 Q2 | Sat Jun 15 2024 00:00:00 GM | $163.81 | $6.89 | 23.8x | -7% |
| FY2024 Q1 | Sat Mar 23 2024 00:00:00 GM | $172.02 | $6.65 | 25.9x | +1% |
| FY2023 Q4 | Sun Dec 31 2023 00:00:00 GM | $169.84 | $6.57 | 25.9x | +1% |
| FY2023 Q3 | Sat Sep 09 2023 00:00:00 GM | $176.27 | $6.00 | 29.4x | +15% |
| FY2023 Q2 | Sat Jun 17 2023 00:00:00 GM | $186.04 | $5.71 | 32.6x | +27% |
| FY2023 Q1 | Sat Mar 25 2023 00:00:00 GM | $179.09 | $4.75 | 37.7x | +47% |
Average P/E for displayed period: 25.6x
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Start ComparisonFrequently Asked Questions
Is PEP stock overvalued or undervalued?
PEP trades at 28.3x P/E, near its 5-year average of 26.4x. The 80th percentile ranking places valuation within normal historical bounds.
How does PEP's valuation compare to peers?
PepsiCo, Inc. P/E of 28.3x compares to sector median of 21.6x. The premium reflects expected growth above peers.
What is PEP's PEG ratio?
PEP PEG ratio is 8.67. Above 2.0 indicates premium valuation relative to growth rate. Historical P/E data spans 1990-2025.