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PepsiCo Inc
NASDAQ:PEP

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PepsiCo Inc
NASDAQ:PEP
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Price: 156.28 USD 1.62%
Market Cap: $213.6B

EV/EBIT

16.2
Current
9%
Cheaper
vs 3-y average of 17.8

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
16.2
=
Enterprise Value
$247.4B
/
EBIT
$15.2B

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
16.2
=
Enterprise Value
$247.4B
/
EBIT
$15.2B

Valuation Scenarios

PepsiCo Inc is trading below its 3-year average

If EV/EBIT returns to its 3-Year Average (17.8), the stock would be worth $171.87 (10% upside from current price).

Statistics
Positive Scenarios
3/4
Maximum Downside
-9%
Maximum Upside
+21%
Average Upside
10%
Scenario EV/EBIT Value Implied Price Upside/Downside
Current Multiple 16.2 $156.28
0%
3-Year Average 17.8 $171.87
+10%
5-Year Average 18.8 $182.17
+17%
Industry Average 14.8 $142.97
-9%
Country Average 19.6 $189.75
+21%

Forward EV/EBIT
Today’s price vs future ebit

Today's Enterprise Value EBIT Forward EV/EBIT
$247.4B
/
Mar 2026
$15.2B
=
16.2
Current
$247.4B
/
Dec 2026
$16.2B
=
15.2
Forward
$247.4B
/
Dec 2027
$17.1B
=
14.4
Forward
$247.4B
/
Dec 2028
$18.1B
=
13.6
Forward

Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.

Peer Comparison

All Multiples
EV/EBIT
P/E
All Countries
Close
Market Cap EV/EBIT P/E
US
PepsiCo Inc
NASDAQ:PEP
210.4B USD 16.2 24.5
US
Coca-Cola Co
NYSE:KO
321.1B USD 24 25.1
MX
Fomento Economico Mexicano SAB de CV
NYSE:FMX
203.2B USD 50.6 181
US
Monster Beverage Corp
NASDAQ:MNST
74.3B USD 30.2 39.8
CN
Nongfu Spring Co Ltd
HKEX:9633
541.4B HKD 21.8 30.8
UK
Coca-Cola Europacific Partners PLC
NASDAQ:CCEP
43.2B USD 16.9 19.5
US
Keurig Dr Pepper Inc
NASDAQ:KDP
36.1B USD 14.5 18.7
MX
Coca-Cola Femsa SAB de CV
NYSE:KOF
21.1B USD 10.2 15.5
CH
Coca Cola HBC AG
LSE:CCH
15.2B GBP 13.4 18.6
MX
Arca Continental SAB de CV
BMV:AC
347.4B MXN 9.1 17.7
IN
Varun Beverages Ltd
NSE:VBL
1.7T INR 42.1 54.1

Market Distribution

In line with most companies in the United States of America
Percentile
38th
Based on 8 638 companies
38th percentile
16.2
Low
0 — 13.6
Typical Range
13.6 — 27.8
High
27.8 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 13.6
Median 19.6
70th Percentile 27.8
Max 1 826 183.2

PepsiCo Inc
Glance View

PepsiCo Inc., with its roots tracing back to the late 19th century when Caleb Bradham invented Pepsi-Cola, has evolved into a multinational powerhouse known for its diverse range of beverages and snacks. This American giant operates through several well-defined segments, primarily Beverages, Frito-Lay North America, Quaker Foods North America, Latin America, Europe, Africa, the Middle East, and Asia Pacific divisions. Each of these segments plays a crucial role in shaping the company's global footprint. The beverage division, housing iconic brands like Pepsi, Mountain Dew, and Tropicana, remains a cornerstone of their business model. Meanwhile, the famed Frito-Lay snacks, with cultural staples such as Lay's, Doritos, and Cheetos, contribute significantly to the company's revenue streams, capturing markets worldwide with their wide appeal. Diving deeper into its operations, PepsiCo's strategy isn't merely about selling products—it's about commanding a vast distribution network and innovating in response to shifting consumer demands. The company invests heavily in marketing and research and development, ensuring its portfolio resonates with the evolving tastes and preferences of consumers, including a rising interest in healthier options. Simultaneously, PepsiCo's direct store delivery model, alongside partnerships with bottlers and distributors, optimizes logistics and market penetration. From leveraging advanced analytics for precision marketing to pursuing sustainability initiatives in sourcing and packaging, PepsiCo's methods are as dynamic as its products. This adaptability ensures it can effectively monetize its diverse product offerings across the globe, reinforcing its position as a significant player in the global food and beverage industry.

PEP Intrinsic Value
165.1 USD
Undervaluation 5%
Intrinsic Value
Price $156.28
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