Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
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- Analysis of Profitability Ratios
- Analysis of Geographic Areas
- Enterprise Value (EV)
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Return on Equity (ROE) since 2005
- Current Ratio since 2005
- Debt to Equity since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Debt
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Current Valuation Ratios
PepsiCo Inc., current price multiples
| PepsiCo Inc. | Coca-Cola Co. | Mondelēz International Inc. | Philip Morris International Inc. | Food, Beverage & Tobacco | Consumer Staples | ||||
|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||
| Current share price (P) | |||||||||
| No. shares of common stock outstanding | |||||||||
| Growth rate (g) | |||||||||
| Earnings per share (EPS) | |||||||||
| Next year expected EPS | |||||||||
| Operating profit per share | |||||||||
| Sales per share | |||||||||
| Book value per share (BVPS) | |||||||||
| Valuation Ratios (Price Multiples) | |||||||||
| Price to earnings (P/E) | |||||||||
| Price to next year expected earnings | |||||||||
| Price-earnings-growth (PEG) | |||||||||
| Price to operating profit (P/OP) | |||||||||
| Price to sales (P/S) | |||||||||
| Price to book value (P/BV) | |||||||||
Based on: 10-K (reporting date: 2024-12-28).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
PepsiCo Inc., historical price multiples
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
Based on: 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), 10-K (reporting date: 2020-12-26).
The analysis of the financial ratios over the five-year period reveals a consistent downward trend in valuation multiples for the company. This indicates a gradual reduction in market expectations relative to the company's earnings, operating profits, sales, and book value.
- Price to Earnings (P/E) Ratio
- The P/E ratio increased from 26.15 in 2020 to a peak of 30.58 in 2021, suggesting elevated investor optimism or higher earnings expectations during that year. Following this peak, a steady decline occurred, reaching 20.55 by 2024. This decline could reflect market reassessment of future earnings growth or increased risk perception.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio exhibited a similar pattern, rising from 18.47 in 2020 to 20.87 in 2021 and maintaining a level around 20.6 in 2022. Subsequently, it declined more sharply to 15.27 by 2024, indicating a notable drop in the price investors are willing to pay per unit of operating profit. This trend aligns with the P/E ratio movement and may signify concerns about profitability sustainability.
- Price to Sales (P/S) Ratio
- The P/S ratio showed a moderate increase from 2.65 in 2020 to 2.93 in 2021 but then declined progressively to 2.14 in 2024. This decrease suggests the market is valuing the company’s revenues less highly over time, which might reflect changing market dynamics, pricing pressures, or lower growth prospects in sales.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio peaked at 14.52 in 2021 after rising from 13.84 in 2020, followed by a consistent decrease to 10.91 in 2024. This trend indicates a declining premium on the company's net asset value, possibly due to reduced investor confidence in the quality of assets or expected returns on equity.
Overall, the valuation multiples reveal that 2021 represented the high point in market valuation across all measured ratios, after which a downward trajectory ensued through to 2024. This uniform trend across earnings, operating profits, sales, and book value suggests a broad market reassessment of the company’s financial prospects, resulting in more conservative valuations.
Price to Earnings (P/E)
PepsiCo Inc., historical P/E calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net income attributable to PepsiCo (in millions) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| Philip Morris International Inc. | ||||||
| P/E Ratio, Sector | ||||||
| Food, Beverage & Tobacco | ||||||
| P/E Ratio, Industry | ||||||
| Consumer Staples | ||||||
Based on: 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), 10-K (reporting date: 2020-12-26).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
EPS = Net income attributable to PepsiCo ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of PepsiCo Inc. Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price experienced an overall increase from 134.97 US dollars in 2020 to a peak of 172.78 US dollars in 2022. Following this peak, a downward trend is observed, with the share price declining to 167.67 US dollars in 2023 and further to 143.49 US dollars by the end of 2024. This indicates a period of growth followed by a notable reduction in market valuation over the latter two years.
- Earnings per Share (EPS)
- EPS shows a consistent upward trajectory throughout the analyzed period. Starting at 5.16 US dollars in 2020, EPS increased steadily each year, reaching 6.98 US dollars by 2024. This trend reflects a continuous improvement in the company's profitability on a per-share basis over the five-year span.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio exhibited fluctuations in alignment with changes in share price and EPS. It rose from 26.15 in 2020 to a high of 30.58 in 2021, then gradually declined to 20.55 by 2024. The decline in P/E ratio, particularly in the last two years, suggests that the stock became relatively less expensive in relation to its earnings, potentially reflecting market recalibration following the EPS growth and share price correction.
Price to Operating Profit (P/OP)
PepsiCo Inc., historical P/OP calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating profit (in millions) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| Philip Morris International Inc. | ||||||
| P/OP Ratio, Sector | ||||||
| Food, Beverage & Tobacco | ||||||
| P/OP Ratio, Industry | ||||||
| Consumer Staples | ||||||
Based on: 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), 10-K (reporting date: 2020-12-26).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Operating profit per share = Operating profit ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of PepsiCo Inc. Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price increased consistently from the beginning of the period, rising from $134.97 at the end of 2020 to a peak of $172.78 at the end of 2022. Thereafter, it exhibited a declining trend, dropping to $143.49 by the end of 2024. This indicates a peak in market valuation in 2022 followed by a reduction in investor valuation or market sentiment over the last two years.
- Operating Profit Per Share
- Operating profit per share showed a steady upward trend throughout the entire period. Starting at $7.31 in 2020, it increased each year, reaching $9.40 by the end of 2024. This consistent rise suggests improving profitability on a per-share basis, reflecting potential operational efficiencies or revenue growth.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio initially rose from 18.47 in 2020 to a peak of 20.87 in 2021, indicating an increasing valuation multiple relative to operating profit. Subsequently, the ratio gradually declined to 15.27 by the end of 2024. This decline, coupled with the rising operating profit per share, points to a market reassessment resulting in a lower multiple applied to the improved earnings performance, possibly due to market conditions or investor expectations.
- Overall Analysis
- While operating profitability per share consistently improved over the period, the market value as indicated by the share price rose initially but then reversed direction after 2022. The decreasing P/OP ratio in the latter years implies that the share price adjustment was more significant relative to operating profit growth, suggesting a revaluation by investors. The trends point to a scenario where operational performance strengthened steadily but market valuation became more conservative toward the end of the observed timeframe.
Price to Sales (P/S)
PepsiCo Inc., historical P/S calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net revenue (in millions) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| Philip Morris International Inc. | ||||||
| P/S Ratio, Sector | ||||||
| Food, Beverage & Tobacco | ||||||
| P/S Ratio, Industry | ||||||
| Consumer Staples | ||||||
Based on: 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), 10-K (reporting date: 2020-12-26).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Sales per share = Net revenue ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of PepsiCo Inc. Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited an overall upward trend from the end of 2020 through to the end of 2022, rising from $134.97 to $172.78. However, this was followed by a decline over the subsequent two years, reaching $143.49 by the end of 2024. This indicates a peak in valuation in late 2022 and a corrective phase thereafter.
- Sales Per Share Development
- Sales per share demonstrated consistent growth each year, increasing from $51.01 in 2020 to $66.97 in 2024. This steady increase suggests ongoing expansion or improved revenue generation relative to the number of shares outstanding.
- Price-to-Sales (P/S) Ratio Movements
- The P/S ratio rose from 2.65 in 2020 to a peak of 2.93 in 2021, indicating that the share price was increasing at a faster pace than sales. Subsequently, the ratio declined steadily to 2.14 by the end of 2024, reflecting that while sales per share continued to grow, the market valuation became more conservative, adjusting to lower multiples.
- Overall Insights
- While sales per share growth remains positive and consistent, the share price experienced volatility with a peak followed by a notable decrease. The declining P/S ratio in the later years suggests a reassessment by the market of the company's valuation relative to its sales performance, potentially due to broader market conditions or changing investor sentiment.
Price to Book Value (P/BV)
PepsiCo Inc., historical P/BV calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Total PepsiCo common shareholders’ equity (in millions) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| Philip Morris International Inc. | ||||||
| P/BV Ratio, Sector | ||||||
| Food, Beverage & Tobacco | ||||||
| P/BV Ratio, Industry | ||||||
| Consumer Staples | ||||||
Based on: 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), 10-K (reporting date: 2020-12-26).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
BVPS = Total PepsiCo common shareholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of PepsiCo Inc. Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price demonstrated an overall upward movement from 2020 through 2022, rising from 134.97 US dollars in December 2020 to a peak of 172.78 US dollars in December 2022. However, after this peak, a declining trend was observed, with the share price decreasing to 167.67 US dollars by the end of 2023 and further declining to 143.49 US dollars by the end of 2024.
- Book Value per Share (BVPS) Trend
- Book value per share exhibited consistent growth across the observed periods. It increased steadily from 9.75 US dollars in December 2020 to 13.46 US dollars by the end of 2023, representing a continuous strengthening of the underlying book value. There was a slight decrease to 13.15 US dollars in December 2024, indicating a minor reduction in book value after several years of growth.
- Price-to-Book Value Ratio (P/BV) Trend
- The price-to-book value ratio showed a decelerating trend over the observed periods. Starting at 13.84 in 2020, the ratio increased slightly to 14.52 in 2021 but then began a progressive decline, reaching 13.88 in 2022, 12.45 in 2023, and finally lowering further to 10.91 by the end of 2024. This decreasing ratio suggests that the market's valuation of the company's shares relative to its book value has been diminishing steadily.
- Summary and Insights
- The data indicates that while the book value per share has generally risen, reflecting growth in equity value, the share price experienced an increase only up to late 2022 before entering a downturn. The contraction in the P/BV ratio over the years points to a decline in market optimism or value attributed to the company’s book equity. This divergence between share price movement and increasing book value may imply market concerns or external factors impacting investor sentiment during the most recent periods.