Enterprise Value to EBITDA (EV/EBITDA)
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- 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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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
PepsiCo Inc., EBITDA calculation
US$ in millions
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, a general upward trend in profitability metrics is observed, though with some moderation in the most recent year. Earnings before interest, tax, depreciation, and amortization (EBITDA) consistently increased from 2021 to 2024, before experiencing a decline in 2025. This pattern is mirrored, though to varying degrees, in net income attributable to PepsiCo, earnings before tax (EBT), and earnings before interest and tax (EBIT).
- EBITDA Trend
- EBITDA demonstrated consistent growth from US$14,519 million in 2021 to US$16,712 million in 2024, representing a cumulative increase of approximately 15.1%. However, 2025 saw a decrease to US$15,535 million, indicating a potential shift in operational performance or increased costs. The rate of EBITDA growth slowed between 2022 and 2023, and again between 2023 and 2024, suggesting diminishing returns or increased competitive pressures.
- Relationship between Profitability Metrics
- A consistent relationship exists between the reported profitability measures. EBITDA consistently exceeds EBIT, which in turn exceeds EBT, and finally net income. This is expected, as each subsequent metric deducts further expenses. The differences between these metrics remained relatively stable across the period, suggesting no significant changes in the company’s capital structure or tax rate.
- Net Income Performance
- Net income attributable to PepsiCo increased from US$7,618 million in 2021 to US$9,578 million in 2024, a rise of approximately 25.8%. Similar to other metrics, net income decreased in 2025, falling to US$8,240 million. This decrease aligns with the decline observed in EBITDA and EBT, suggesting a broad-based impact on overall profitability.
- EBIT and EBT Growth
- EBIT increased from US$11,809 million in 2021 to US$13,552 million in 2024, before decreasing to US$12,084 million in 2025. EBT followed a similar trajectory, rising from US$9,821 million in 2021 to US$11,946 million in 2024, and then declining to US$10,244 million in 2025. The growth rates for EBIT and EBT were relatively consistent throughout the period, indicating a stable interest expense.
The 2025 decline across all reported metrics warrants further investigation to determine the underlying causes. Potential factors could include increased operating expenses, changes in revenue mix, or unfavorable economic conditions. The slowdown in growth rates observed in the years leading up to 2025 also suggests a need to assess the sustainability of previous performance.
Enterprise Value to EBITDA Ratio, Current
PepsiCo Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Coca-Cola Co. | |
| Mondelēz International Inc. | |
| Philip Morris International Inc. | |
| EV/EBITDA, Sector | |
| Food, Beverage & Tobacco | |
| EV/EBITDA, Industry | |
| Consumer Staples | |
Based on: 10-K (reporting date: 2025-12-27).
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
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | ||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | ||||||
| Valuation Ratio | ||||||
| EV/EBITDA3 | ||||||
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| Philip Morris International Inc. | ||||||
| EV/EBITDA, Sector | ||||||
| Food, Beverage & Tobacco | ||||||
| EV/EBITDA, 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).
3 2025 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
The Enterprise Value to EBITDA ratio exhibited fluctuations over the five-year period. Initially, the ratio demonstrated a slight increase, followed by a notable decline, and then a partial recovery.
- Enterprise Value to EBITDA Trend
- In 2021, the EV/EBITDA ratio stood at 18.42. It increased marginally to 18.63 in 2022. A downward trend commenced in 2023, with the ratio decreasing to 16.75. This decline accelerated in 2024, reaching a low of 13.88. Subsequently, the ratio experienced a partial recovery in 2025, rising to 16.89.
Enterprise Value remained relatively stable between 2021 and 2023, with a decrease observed in 2024, followed by a partial recovery in 2025. EBITDA consistently increased from 2021 to 2024, before decreasing slightly in 2025.
- Enterprise Value Analysis
- Enterprise Value showed a modest increase from US$267,386 million in 2021 to US$271,808 million in 2022. It then decreased to US$264,687 million in 2023. A more substantial decrease was recorded in 2024, falling to US$231,967 million. The final year observed a recovery to US$262,352 million in 2025.
- EBITDA Analysis
- EBITDA demonstrated a consistent upward trajectory from US$14,519 million in 2021 to US$14,587 million in 2022, then to US$15,802 million in 2023, and peaking at US$16,712 million in 2024. A slight decrease to US$15,535 million was observed in 2025.
The decrease in the EV/EBITDA ratio in 2024 appears to be driven by a combination of a significant reduction in Enterprise Value and a concurrent increase in EBITDA. The partial recovery in 2025 is attributable to an increase in Enterprise Value and a slight decrease in EBITDA.