PepsiCo Inc. (NASDAQ:PEP)

Price to Earnings (P/E) Ratio

The P/E ratio shows notable fluctuations across the observed periods. Initially, it was around the mid-20s, peaking at approximately 30.58 in late 2021. Subsequently, it declined towards the low 20s through much of 2022 before experiencing a significant surge to nearly 40 in early 2023. Following this peak, the ratio trended downward again, settling in the low to mid-20s by late 2023 and early 2024. The ratio dipped further around the turn of 2024 and 2025, reaching values near 20, before rebounding modestly to approximately 27 by the third quarter of 2025. This pattern indicates periods of varying market sentiment or earnings performance impacting valuation multiples.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio exhibits a pattern of moderate volatility with some distinct peaks and troughs. From values near 18.7 in early 2021, it rose to around 20.87 by the end of that year. The ratio then declined to the mid-to-high teens through 2022, followed by a sharp increase reaching 29.45 in the first quarter of 2023, aligning with the P/E ratio spike. Thereafter, it decreased steadily, reaching a low near 15 by mid-2024 and early 2025, before climbing again to near 19 by the latter part of 2025. The fluctuations suggest changing profitability dynamics and market expectations related to operating income.

Price to Sales (P/S) Ratio

The P/S ratio displays relative stability with minor oscillations between 2 and 3. It consistently hovered in the mid- to high 2s range from 2021 through 2023, with a subtle downward trend noticeable from early 2023 onward, dipping slightly below 2.5 by mid-2025. This steadiness implies that stock price movement relative to revenue did not fluctuate as dramatically as earnings or operating profits, pointing to less volatility in sales valuation compared to profitability measures.

Price to Book Value (P/BV) Ratio

The P/BV ratio demonstrates a gradual decline over the period. Starting above 14 in early 2021, it fluctuated downward with intermittent recoveries but generally trended lower, reaching slightly above 10 by mid-2025. This sustained decline suggests a relative decrease in market valuation compared to the book value, potentially reflecting changing investor perceptions of asset value or risk factors.

The financial data indicates several distinct trends in the share price, earnings per share (EPS), and price-to-earnings (P/E) ratio over multiple quarters. An analysis of these metrics reveals insights into market valuation and company performance over time.

Share Price

The share price exhibited an overall upward trend from the beginning of the observed period until early 2023, reaching a peak around March 2023. This was followed by fluctuations characterized by a notable decline in late 2024 and stabilization at lower levels in mid-2025. Periods of price appreciation correspond generally with rises in EPS, suggesting positive market reaction to earnings growth during those times.

Earnings per Share (EPS)

EPS showed variability but displayed a general pattern of growth until early 2022, peaking at 7.35 in March 2022, followed by some volatility with dips and recoveries throughout 2023 and 2024. The EPS values in 2024 and 2025 depict a modest decreasing trend compared to the earlier peak, indicating a possible slowdown or fluctuation in profitability growth during these later periods.

Price-to-Earnings (P/E) Ratio

The P/E ratio fluctuated throughout the data set, reflecting changing investor sentiment relative to earnings performance. There was a substantial increase in the P/E ratio around early 2023, peaking notably higher than prior levels, which might indicate market high expectations or overvaluation relative to earnings at that time. Later, the P/E ratios trended downward into late 2024 and stabilized somewhat in 2025, suggesting recalibration of market valuations in line with the changes to share price and EPS.

In summary, early periods showed growth in earnings and share price with relatively stable valuations. The data indicates a phase of elevated market valuation in early 2023 followed by a correction in prices and multiple periods of earnings fluctuations. The overall trends hint at cautious market optimism tempered by earnings variability in recent quarters.

Share Price Trends

The share price exhibited a gradual upward trend from March 2021 to March 2023, increasing from $142.31 to a peak of $189.71. Subsequently, the share price experienced fluctuations and an overall decline, falling to $144.71 by September 2025. Notable declines occurred after March 2023, with intermittent recoveries, but the price did not regain the earlier peak.

Operating Profit Per Share

Operating profit per share showed variability over the period. From March 2021 to March 2022, there was a general increase, reaching a high of $10.21. Following this, values declined, hitting a low of $6.44 in March 2023. After March 2023, there was a phase of partial recovery with figures stabilizing mostly between $7.45 and $9.40 through to September 2025, indicating some volatility but no clear sustained upward or downward trend.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio demonstrated notable fluctuations. Initially, it remained relatively stable around 18.0 to 20.0 until December 2021. From early 2022 to early 2023, this ratio spiked significantly, peaking at 29.45 in March 2023, implying the share price was high relative to operating profit per share at that time. Post-March 2023, the P/OP ratio decreased sharply to a low of 14.55 in June 2025, then rose again moderately to 19.42 by September 2025. These changes suggest varying market valuation relative to underlying profitability.

Overall Insights

Overall, the data reveals an initial period of growth in share price and operating profit per share up to early 2022, followed by increased market valuation volatility as reflected in the P/OP ratio. The peak valuation ratio in early 2023 coincides with a low point in operating profit per share, suggesting a divergence between market sentiment and operational performance. The subsequent period shows correction and partial stabilization in both profitability and share price, though the latest figures indicate the company did not sustain the peak values observed in the early 2020s.

The financial data reveals several key trends in the company's market valuation and sales performance over multiple quarters from March 2021 to September 2025.

Share Price

The share price demonstrated a general upward trajectory from March 2021, starting at $142.31 and peaking around March 2023 at $189.71. Following this peak, the share price experienced a notable decline, reaching approximately $135.31 by March 2025 before stabilizing near $145 towards September 2025. This pattern indicates initial investor confidence and growth expectations, followed by a period of correction or reduced momentum in the later quarters.

Sales per Share

Sales per share exhibited consistent growth throughout the entire period, increasing steadily from $51.61 in March 2021 to $67.55 by September 2025. The growth rate was steady without any significant fluctuations, suggesting a stable and sustained improvement in underlying sales performance on a per-share basis over time.

Price-to-Sales (P/S) Ratio

The price-to-sales ratio showed variability in response to the changing share price relative to sales per share. Initially, the P/S ratio hovered around the 2.7-2.9 range, rising to nearly 2.97 in March 2023, coinciding with the peak in share price. Subsequently, the ratio declined to a low near 2.03 by mid-2025, reflecting the downward adjustment in share price while sales per share continued to increase. By September 2025, the P/S ratio had slightly recovered to around 2.14, indicating some restoration of market valuation relative to sales.

In summary, the data suggests that while the company's sales per share strengthened steadily over the observed periods, the market valuation as reflected by share price and P/S ratio underwent a period of expansion followed by a correction. This indicates that despite improving fundamental sales metrics, market sentiment or external factors might have influenced the valuation more dynamically in later quarters.

The analysis of the quarterly financial data reveals important trends in the market valuation and book value metrics over the observed period.

Share Price

The share price exhibited a general upward movement from March 2021 through March 2023, reaching a peak around 189.71 US$ in March 2023. After this peak, the share price showed a declining trend, decreasing to approximately 144.71 US$ by September 2025. This pattern indicates initial growth in market confidence followed by a period of correction or weakening price performance in the later quarters.

Book Value Per Share (BVPS)

BVPS shows a consistent upward trend from 10.09 US$ in March 2021 to 14.18 US$ by September 2025, with minor fluctuations. This steady increase reflects ongoing growth in the company's net asset value on a per-share basis, suggesting strengthening underlying fundamentals despite volatility in share price.

Price-to-Book Value Ratio (P/BV)

The P/BV ratio declined overall from 14.1 in early 2021 to around 10.21 by late 2025. This reduction demonstrates a diminishing premium investors are willing to pay over the book value. The highest P/BV was observed around 15.34 in March 2023, coinciding with the peak share price, suggesting perhaps an overvaluation at that point. Subsequent declines in P/BV indicate a possible recalibration of market expectations in line with fundamental value increases.

In summary, while the book value per share increased steadily, reflecting strengthening net assets, the share price was more volatile. After peaking in early 2023, the share price declined notably, which was mirrored by a reduction in the P/BV ratio. This overall suggests a movement from growth-driven investor optimism toward more conservative valuation relative to the company’s increasing book value.