PepsiCo Inc. (NASDAQ:PEP)

The financial ratios over the observed periods demonstrate several noteworthy trends and fluctuations across the different valuation metrics of the company.

Price to Earnings (P/E) Ratio

The P/E ratio shows a general pattern of moderate volatility with peaks and troughs across quarters. Starting near 26 in early 2020, it saw a noticeable increase reaching near 39.71 in mid-2023 before declining steadily towards the end of 2024 and into mid-2025, where it settled around 26.37. This indicates periods of higher market optimism or earnings fluctuations, followed by normalization.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio reflects a similar pattern to the P/E ratio but with slightly wider swings. It rose from approximately 18.47 in early 2020 to a peak of about 29.45 in mid-2023. Thereafter, it declined to roughly 18.97 by mid-2025. This suggests variable investor sentiment about operating profitability, possibly influenced by operational performance or external market conditions.

Price to Sales (P/S) Ratio

The P/S ratio remained relatively stable throughout the period, fluctuating mostly between 2.0 and 3.0. It shows minor variations with a mild decline after mid-2023, reaching a low near 2.03 before slightly increasing again by mid-2025. This steadiness suggests a consistent valuation relation to revenue, indicating steady sales performance or market expectations regarding sales growth.

Price to Book Value (P/BV) Ratio

The P/BV ratio displayed a downward trend from about 14.95 in mid-2020 to near 10.09 by early 2025. There were intermittent recoveries, but the overall decline signals either an increase in book value or a reduced market valuation relative to the company's net asset value. This decline could indicate market cautiousness or improvements in the company's asset base.

Overall, the ratios point to a period marked by initial growth sentiments followed by correction phases. The P/E and P/OP expansions and contractions suggest shifts in profitability and operating performance expectations, while the P/S and P/BV ratios indicate more stable sales and asset value assessments with a gradual adjustment in market valuation relative to book equity.

The financial data reveals several notable trends in the share price, earnings per share (EPS), and price-to-earnings (P/E) ratio over the analyzed periods.

Share Price

The share price exhibits a general upward trend from March 2020 through mid-2023, starting at approximately $136 and reaching a peak near $190 in early 2023. Following this peak, there is a decline observed into late 2024 and mid-2025, where prices drop back to around $135-$145. This suggests an initial phase of investor confidence and growth, followed by a period of correction or reduced market enthusiasm.

Earnings per Share (EPS)

EPS data is available beginning in March 2021 and shows fluctuations across the quarters. EPS peaked at 7.35 in March 2022 and experienced periods of decline and recovery thereafter. Notably, EPS fell to a low of 4.78 in March 2023 before recovering to 6.68 in March 2024. Toward mid-2025, EPS shows a declining tendency again, falling to 5.51 in June 2025. Overall, EPS demonstrates variability with cyclical trends, indicating varying profitability or earnings pressure during the period.

Price-to-Earnings (P/E) Ratio

The P/E ratio follows a somewhat volatile path with values ranging from approximately 19.8 to nearly 40. The highest P/E was seen in March 2023 at 39.71, coinciding with an EPS trough and a relatively high share price, which may imply investor optimism despite lower earnings. The ratio declines after this peak, reaching lower levels around 20 by mid-2025, which could indicate a market reassessment of the company’s valuation relative to earnings. Generally, the P/E ratio fluctuations reflect changes in market sentiment and earnings performance.

In summary, the data shows a period of share price growth stabilizing into a downward trend, EPS volatility with intermittent ups and downs, and a P/E ratio that peaks sharply during a phase of lower earnings, suggesting an oscillation between investor optimism and caution. These patterns underline the dynamic interaction between market valuation and earnings performance during the analyzed timeline.

The analysis of the quarterly financial data reveals several trends concerning the share price, operating profit per share, and the price-to-operating profit ratio (P/OP) over the examined periods.

Share Price Trends

The share price exhibits a general upward trajectory from March 2020 through the end of 2022, increasing from approximately $136 to a high near $190 in the first quarter of 2023. Following this peak, the share price demonstrates volatility with a notable decline occurring in 2024 and into mid-2025, falling back into the range of approximately $135 to $145. The fluctuations indicate periods of both investor optimism and caution, with the highest valuation observed in early 2023.

Operating Profit Per Share

Operating profit per share shows consistent growth from mid-2020, starting around $7.31 and generally rising to a peak above $9.0 during 2024. An exception is observed in mid-2023, where the value dips closer to $6.44 before resuming its upward trend. This suggests operational improvements and increased profitability over time, albeit with some temporary setbacks. The values appear stable around $8 to $9 in most recent quarters, implying a maintained profitability level despite market variations.

Price-to-Operating Profit Ratio (P/OP)

The P/OP ratio initially fluctuates between approximately 16.97 and 20.87 from late 2020 through early 2023, indicating moderate valuation multiples relative to operating profit per share. A substantial increase to nearly 29.45 is observed in early 2023, coinciding with the peak in share price and dip in operating profit, suggesting elevated investor expectations or possibly overvaluation at that time. Subsequently, the ratio declines progressively, reaching levels close to 14.55 by mid-2025. This decline may signal a market correction or adjustment to lower growth outlooks.

In summary, the data reveals a strong growth phase from 2020 through early 2023, marked by rising share prices and operating profitability. However, the latter period shows increased volatility with share prices declining and ratios adjusting downward, reflecting a more cautious market sentiment or fundamental shifts in company performance. The temporary drop in operating profit per share in mid-2023 highlights some operational challenges, but overall profitability remains within a stable range.

The share price exhibited fluctuations over the observed periods, with an overall upward trend until the early part of 2023, reaching a peak of 189.71 US$ in March 2023. Following this peak, there was a decline with some volatility, resulting in a lower value of 135.31 US$ by June 2025. This indicates a period of growth followed by a correction or decrease in market valuation.

Sales per share demonstrated a consistent upward trajectory from the initial available data point of 51.01 US$ in March 2021 to 67.01 US$ in June 2025. This steady increase suggests improving revenue generation on a per-share basis, reflecting potential growth in business operations or market demand.

The Price-to-Sales (P/S) ratio showed variability throughout the periods. Initially, the ratio increased from 2.65 in March 2021 to a peak around 2.97 in March 2023, paralleling the rise in the share price. After the peak, the ratio declined to around 2.03 by June 2025, indicating that the market price relative to sales per share decreased. This could imply a change in market sentiment or valuation adjustments, possibly reflecting the share price decline outpacing sales growth.

Share Price Trend

Initial growth reaching a peak in early 2023, followed by a notable decline to mid-2025.

Sales per Share Trend

Consistent increase throughout the period, indicating steady revenue growth.

Price-to-Sales (P/S) Ratio Trend

Rise alongside share price increase until early 2023, then a significant drop reflecting reduced valuation multiples.

Overall, the data suggests a company with growing sales yet experiencing market valuation pressures post-2023. The divergence between increasing sales per share and declining share price and P/S ratio in the later periods warrants attention to potential underlying factors affecting investor confidence or market conditions.

The share price exhibited overall fluctuations over the periods, beginning at $136.32 in March 2020 and reaching a peak around $189.71 in March 2023. Subsequently, a downward trend followed, with notable declines through to June 2025, ending at $145.44. Despite this decline, the share price maintained relatively higher values compared to the initial periods in 2020.

The book value per share (BVPS) displayed a general upward trend throughout the data range. Starting at $9.7 in March 2020, it increased steadily with minor fluctuations, peaking near $14.18 in September 2024. There was a slight decrease following the peak but overall, BVPS demonstrated growth, signaling an increase in the company's net asset value per share over time.

The price-to-book value ratio (P/BV) reflected notable variation particularly influenced by the movements in share price and BVPS. Initially high at 14.05 in March 2020, the P/BV fluctuated within a range of approximately 10.09 to 15.34. The highest ratio was recorded in March 2023 coinciding with the peak in share price, suggesting a period when the market valuation was relatively high compared to the book value. Post-2023, the P/BV ratio showed a downward trend, reaching its lowest levels in mid-2025, indicative of either falling market prices or improving book values, or both.

In summary, the data shows significant volatility in market valuation as measured by share prices and P/BV ratios, contrasted against steady growth in fundamental book value per share. The peak in market valuation around early 2023 followed by a decline may suggest changing investor sentiment or external market conditions impacting the stock's attractiveness despite underlying asset growth.