Stock Analysis on Net
Stock Analysis on Net

PepsiCo Inc. (NASDAQ:PEP)

Enterprise Value to EBITDA (EV/EBITDA) 

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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

PepsiCo Inc., EBITDA calculation

US$ in millions

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12 months ended: Dec 25, 2021 Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017
Net income attributable to PepsiCo 7,618  7,120  7,314  12,515  4,857 
Add: Net income attributable to noncontrolling interest 61  55  39  44  51 
Add: Income tax expense 2,142  1,894  1,959  (3,370) 4,694 
Earnings before tax (EBT) 9,821  9,069  9,312  9,189  9,602 
Add: Interest expense 1,988  1,252  1,135  1,525  1,151 
Earnings before interest and tax (EBIT) 11,809  10,321  10,447  10,714  10,753 
Add: Depreciation and amortization 2,710  2,548  2,432  2,399  2,369 
Earnings before interest, tax, depreciation and amortization (EBITDA) 14,519  12,869  12,879  13,113  13,122 

Based on: 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. PepsiCo Inc. EBITDA decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Enterprise Value to EBITDA Ratio, Current

PepsiCo Inc., current EV/EBITDA calculation, comparison to benchmarks

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 258,739 
Earnings before interest, tax, depreciation and amortization (EBITDA) 14,519 
Valuation Ratio
EV/EBITDA 17.82
Benchmarks
EV/EBITDA, Competitors1
Altria Group Inc. 22.07
Coca-Cola Co. 19.15
Mondelēz International Inc. 14.42
Philip Morris International Inc. 12.89
EV/EBITDA, Sector
Food, Beverage & Tobacco 16.93
EV/EBITDA, Industry
Consumer Staples 15.79

Based on: 10-K (reporting date: 2021-12-25).

1 Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.

Enterprise Value to EBITDA Ratio, Historical

PepsiCo Inc., historical EV/EBITDA calculation, comparison to benchmarks

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Dec 25, 2021 Dec 26, 2020 Dec 28, 2019 Dec 29, 2018 Dec 30, 2017
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 267,386  220,903  229,939  184,232  179,133 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 14,519  12,869  12,879  13,113  13,122 
Valuation Ratio
EV/EBITDA3 18.42 17.17 17.85 14.05 13.65
Benchmarks
EV/EBITDA, Competitors4
Altria Group Inc. 22.27 12.62 45.37 11.89 12.47
Coca-Cola Co. 19.52 19.66 21.79 21.80 24.51
Mondelēz International Inc. 15.62 15.14 18.69 15.64 16.47
Philip Morris International Inc. 13.64 12.59 13.77 11.62 14.88
EV/EBITDA, Sector
Food, Beverage & Tobacco 17.53 15.71 19.43 14.75 15.89
EV/EBITDA, Industry
Consumer Staples 16.86 15.65 19.40 13.77 13.35

Based on: 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30).

1 See details »

2 See details »

3 2021 Calculation
EV/EBITDA = EV ÷ EBITDA
= 267,386 ÷ 14,519 = 18.42

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. PepsiCo Inc. EV/EBITDA ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.