Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

PepsiCo Inc. (NASDAQ:PEP)

Common Stock Valuation Ratios (Price Multiples)

Beginner level

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).


Current Valuation Ratios

PepsiCo Inc., current price multiples

Microsoft Excel LibreOffice Calc
PepsiCo Inc. Coca-Cola Co. Beverages Consumer Goods
Selected Financial Data
Current share price (P) $144.23
No. shares of common stock outstanding 1,381,956,485
Growth rate (g) 17.65%
 
Earnings per share (EPS) $5.29
Next year expected EPS $6.23
Operating profit per share $7.45
Sales per share $48.60
Book value per share (BVPS) $10.70
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 27.25 24.86 25.94 36.70
Price to next year expected earnings 23.16 31.82 25.35 33.41
Price-earnings-growth (PEG) 1.54 11.13 3.73
Price to operating profit (P/OP) 19.37 21.99 20.66 23.13
Price to sales (P/S) 2.97 5.95 4.03 3.85
Price to book value (P/BV) 13.48 11.68 12.47 11.78

Based on: 10-K (filing date: 2020-02-13).

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

Microsoft Excel LibreOffice Calc
Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 26, 2015
Price to earnings (P/E) 27.83 13.01 32.81 24.09 25.72
Price to operating profit (P/OP) 19.78 16.10 15.15 15.57 16.77
Price to sales (P/S) 3.03 2.52 2.51 2.43 2.22
Price to book value (P/BV) 13.76 11.21 14.62 13.73 11.75

Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-15), 10-K (filing date: 2016-02-11).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. PepsiCo Inc.’s P/E ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. PepsiCo Inc.’s P/OP ratio increased from 2017 to 2018 and from 2018 to 2019.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. PepsiCo Inc.’s P/S ratio increased from 2017 to 2018 and from 2018 to 2019.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. PepsiCo Inc.’s P/BV ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Price to Earnings (P/E)

PepsiCo Inc., historical P/E calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 26, 2015
No. shares of common stock outstanding1 1,389,544,618 1,404,686,108 1,419,908,267 1,427,214,232 1,445,412,743
Selected Financial Data (US$)
Net income available for PepsiCo common shareholders (in millions) 7,314  12,513  4,853  6,323  5,446 
Earnings per share (EPS)2 5.26 8.91 3.42 4.43 3.77
Share price1, 3 146.47 115.91 112.14 106.73 96.90
Valuation Ratio
P/E ratio4 27.83 13.01 32.81 24.09 25.72
Benchmarks
P/E Ratio, Competitors5
Coca-Cola Co. 28.21 30.47 150.54 27.48 26.01
P/E Ratio, Sector
Beverages 28.04 18.94 56.89 25.81 25.89
P/E Ratio, Industry
Consumer Goods 33.92 20.80 24.15 21.38 24.01

Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-15), 10-K (filing date: 2016-02-11).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
EPS = Net income available for PepsiCo common shareholders ÷ No. shares of common stock outstanding
= 7,314,000,000 ÷ 1,389,544,618 = 5.26

3 Closing price as at the filing date of PepsiCo Inc.’s Annual Report.

4 2019 Calculation
P/E ratio = Share price ÷ EPS
= 146.47 ÷ 5.26 = 27.83

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. PepsiCo Inc.’s P/E ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Price to Operating Profit (P/OP)

PepsiCo Inc., historical P/OP calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 26, 2015
No. shares of common stock outstanding1 1,389,544,618 1,404,686,108 1,419,908,267 1,427,214,232 1,445,412,743
Selected Financial Data (US$)
Operating profit (in millions) 10,291  10,110  10,509  9,785  8,353 
Operating profit per share2 7.41 7.20 7.40 6.86 5.78
Share price1, 3 146.47 115.91 112.14 106.73 96.90
Valuation Ratio
P/OP ratio4 19.78 16.10 15.15 15.57 16.77
Benchmarks
P/OP Ratio, Competitors5
Coca-Cola Co. 24.95 22.54 25.05 20.80 21.91
P/OP Ratio, Sector
Beverages 22.34 19.08 19.27 18.02 19.39
P/OP Ratio, Industry
Consumer Goods 21.38 16.27 17.11 17.57 16.39

Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-15), 10-K (filing date: 2016-02-11).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
Operating profit per share = Operating profit ÷ No. shares of common stock outstanding
= 10,291,000,000 ÷ 1,389,544,618 = 7.41

3 Closing price as at the filing date of PepsiCo Inc.’s Annual Report.

4 2019 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 146.47 ÷ 7.41 = 19.78

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. PepsiCo Inc.’s P/OP ratio increased from 2017 to 2018 and from 2018 to 2019.

Price to Sales (P/S)

PepsiCo Inc., historical P/S calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 26, 2015
No. shares of common stock outstanding1 1,389,544,618 1,404,686,108 1,419,908,267 1,427,214,232 1,445,412,743
Selected Financial Data (US$)
Net revenue (in millions) 67,161  64,661  63,525  62,799  63,056 
Sales per share2 48.33 46.03 44.74 44.00 43.62
Share price1, 3 146.47 115.91 112.14 106.73 96.90
Valuation Ratio
P/S ratio4 3.03 2.52 2.51 2.43 2.22
Benchmarks
P/S Ratio, Competitors5
Coca-Cola Co. 6.75 6.15 5.31 4.28 4.32
P/S Ratio, Sector
Beverages 4.36 3.72 3.51 3.17 3.09
P/S Ratio, Industry
Consumer Goods 3.56 2.98 3.20 3.17 2.85

Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-15), 10-K (filing date: 2016-02-11).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
Sales per share = Net revenue ÷ No. shares of common stock outstanding
= 67,161,000,000 ÷ 1,389,544,618 = 48.33

3 Closing price as at the filing date of PepsiCo Inc.’s Annual Report.

4 2019 Calculation
P/S ratio = Share price ÷ Sales per share
= 146.47 ÷ 48.33 = 3.03

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. PepsiCo Inc.’s P/S ratio increased from 2017 to 2018 and from 2018 to 2019.

Price to Book Value (P/BV)

PepsiCo Inc., historical P/BV calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 26, 2015
No. shares of common stock outstanding1 1,389,544,618 1,404,686,108 1,419,908,267 1,427,214,232 1,445,412,743
Selected Financial Data (US$)
Total PepsiCo shareholders’ equity (in millions) 14,786  14,518  10,889  11,095  11,923 
Book value per share (BVPS)2 10.64 10.34 7.67 7.77 8.25
Share price1, 3 146.47 115.91 112.14 106.73 96.90
Valuation Ratio
P/BV ratio4 13.76 11.21 14.62 13.73 11.75
Benchmarks
P/BV Ratio, Competitors5
Coca-Cola Co. 13.26 11.55 11.00 7.78 7.48
P/BV Ratio, Sector
Beverages 13.48 11.39 12.41 9.71 8.84
P/BV Ratio, Industry
Consumer Goods 10.89 8.39 8.74 8.54 7.91

Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-15), 10-K (filing date: 2016-02-11).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
BVPS = Total PepsiCo shareholders’ equity ÷ No. shares of common stock outstanding
= 14,786,000,000 ÷ 1,389,544,618 = 10.64

3 Closing price as at the filing date of PepsiCo Inc.’s Annual Report.

4 2019 Calculation
P/BV ratio = Share price ÷ BVPS
= 146.47 ÷ 10.64 = 13.76

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. PepsiCo Inc.’s P/BV ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.