PepsiCo Inc. (NASDAQ:PEP)

Price to Earnings (P/E) Ratio

The Price to Earnings ratio exhibits fluctuations over the observed periods. Initially, values remain stable around the mid-20s, ranging roughly between 25.4 and 26.7. A notable spike occurs around March to June 2023, where the ratio peaks at 39.71, indicating heightened investor expectations or market valuation relative to earnings during that interval. Following this peak, a downward correction ensues, with the ratio declining steadily towards 19.8 by March 2025. This overall pattern suggests a period of increased market optimism succeeded by a revaluation to more moderate levels.

Price to Operating Profit (P/OP) Ratio

The Price to Operating Profit ratio shows a similar trend to the P/E ratio but with some distinct characteristics. Starting near 18.5 in late 2020, the ratio climbs to a peak of 29.45 in March 2023, indicating possibly a period where stock prices outpaced operating profit growth. After this peak, the ratio declines consistently to approximately 14.55 by March 2025. The downward trend in the latter periods reflects either a recovery in operating profits relative to price or a market price adjustment, indicating a normalization following a period of potentially elevated valuations.

Price to Sales (P/S) Ratio

The Price to Sales ratio remains relatively stable throughout the timeframe, fluctuating modestly between approximately 2.0 and 3.0. The ratio peaks slightly around mid-2023 at 2.97 and then decreases gradually to around 2.03 by March 2025. This stability suggests that the market valuation relative to sales has not experienced dramatic shifts, indicating steady sales performance or consistent market perceptions regarding sales value.

Price to Book Value (P/BV) Ratio

The Price to Book Value ratio illustrates a gradual declining trend over the periods. Starting high around 14.05 to 14.95 between March and June 2020, it generally decreases to about 10.09 by the end of the observation period in March 2025. Minor fluctuations occur, such as a slight uptick to 15.34 in March 2023, but the overall direction points to decreasing market valuation relative to book value. This could reflect a combination of increasing book value, declining stock price, or adjustments in investor sentiment on the company’s net asset value.

The analysis of the quarterly financial data reveals several notable trends and insights across the reported periods.

Share Price Trends

The share price exhibited overall growth from early 2020 through the end of 2023, rising from $136.32 in March 2020 to a peak of $189.71 in March 2023. Following this peak, the price experienced volatility and a downward correction, declining to $135.31 by March 2025. Notably, from early 2024 onwards, the share price trended downward with intermittent slight recoveries but did not regain prior highs.

Earnings Per Share (EPS) Patterns

EPS data is available starting from March 2021. Initial EPS was $5.16 and showed a general upward trajectory with some fluctuations, reaching notable highs such as $7.35 in March 2022. The EPS experienced decreases in certain quarters such as in March 2023 ($4.78), yet overall it appears to maintain a relatively stable upward trend, ending at $6.83 in March 2025. This suggests consistent profitability with occasional quarterly variations.

Price-to-Earnings (P/E) Ratio Dynamics

The P/E ratio began near mid-20s in early 2021, with fluctuations generally between 20 and 30. Peaks were observed particularly in March 2023 at 39.71, indicating a period when the share price was relatively high compared to earnings. The latter periods show a declining P/E ratio, reaching around 19.8 by March 2025, suggesting that the share price compression relative to earnings may have improved valuation attractiveness or reflected market reassessment.

Overall Insights

The data portrays a company with improving earnings per share and an initially bullish stock price trend, culminating in early 2023. Subsequent periods show a correction in share price while EPS remains relatively stable. The fluctuating P/E ratio highlights changing market perceptions of valuation over the period. The divergence between share price decline and relatively steady EPS towards the end of the analyzed period might indicate potential undervaluation or external market influences.

The analysis of the financial data over the given periods reveals several notable trends in share price, operating profit per share, and the price to operating profit ratio (P/OP) for the company.

Share Price

The share price demonstrated moderate fluctuations throughout the periods under review. The price started around $136 in early 2020 and experienced an overall upward trend reaching a peak of approximately $189.71 in March 2023. Subsequent quarters showed some volatility with declines observed toward the latter part of 2024 and early 2025, where the price decreased to about $135.31. This pattern indicates periods of growth followed by market corrections or external influences impacting investor sentiment.

Operating Profit Per Share

Operating profit per share was not available for the early quarters of 2020 but data from late 2020 onwards shows an initial increase from $7.31 to a high of $10.21 in March 2022. Following this peak, there was a decline to a low of $6.44 by March 2023. From that point, operating profit per share recovered steadily, reaching values close to $9.4 by early 2025. The trend reflects both cyclical profitability variations and an overall resilience with recovery after mid-term dips.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio began around 18.47 in late 2020 and remained relatively stable near 18 to 20 through early 2022. A pronounced spike occurred in March 2023, with the ratio jumping sharply to approximately 29.45, indicative of a high valuation relative to operating profit, likely influenced by the concurrent dip in profit per share. Thereafter, the ratio decreased steadily, returning to lower levels near 14.55 by early 2025, suggesting a correction in valuation metrics and possibly a normalization in market expectations towards operating profit performance.

In summary, the data reflects a company experiencing robust share price growth through early 2023, coupled with operational performance showing cyclicality. The volatility in the P/OP ratio around 2023 highlights periods of valuation adjustments likely linked to profit fluctuations. The recovery in operating profit and the corresponding stabilization of valuation metrics by 2025 indicate improved operational efficiency or market reassessment of profit sustainability.

The share price demonstrated fluctuations over the observed time periods. Initially, it experienced moderate variability around the 130 to 170 US$ range with a peak near 172.78 US$ by the end of 2022. Subsequently, it increased notably to a peak of 189.71 US$ in the first quarter of 2023. After this peak, the price showed a general downward trend, declining to 135.31 US$ by the first quarter of 2025. This indicates a period of high volatility with some recovery and subsequent weakening in share price toward the end of the timeline.

Sales per share exhibited a consistent upward trend over the entire period. The values started from 51.01 US$ in the first quarter of 2021 and increased steadily to reach approximately 66.75 US$ by the first quarter of 2025. This reflects a strong and stable growth in revenues attributed to each share, indicating improved operational performance or revenue generation ability relative to shares outstanding.

The price-to-sales (P/S) ratio showed variability that mirrored aspects of the price and sales per share movements. It began around 2.65 in early 2021 and climbed, peaking near 2.97 in early 2023, signaling that share prices were increasing faster than sales per share during this interval. After the peak, the P/S ratio declined consistently to about 2.03 by the first quarter of 2025. This decrease suggests that either the share price declined at a faster pace than sales per share or sales growth outpaced the share price decrease, leading to a more attractive valuation on a sales basis towards the end of the period.

Overall, the data depict a scenario of steady revenue growth per share accompanied by share price volatility. The valuation multiples reflect a cycle of expansion and contraction, indicating changing market perceptions or external factors influencing the market price relative to sales. The decline in price and P/S ratio in the later quarters may warrant further investigation into market conditions or company-specific developments during that time.

Share Price Trend

Initial moderate fluctuations with a high around 189.71 US$ in early 2023, followed by a declining trend to 135.31 US$ in early 2025.

Sales per Share Trend

Steady and continuous increase from 51.01 US$ in early 2021 to 66.75 US$ in early 2025, indicating growth in revenue on a per-share basis.

Price-to-Sales Ratio Trend

Increased from 2.65 to 2.97 by early 2023, then declined to 2.03 by early 2025, reflecting valuation changes relative to sales growth and share price movements.

Key Insights

The combination of steady sales growth with fluctuating share prices and P/S ratios suggests market volatility and changing investor sentiment. The declining P/S ratio and share price in the later periods could indicate market reassessment or external pressures despite solid sales performance.

Share Price Trends

The share price showed variability over the observed periods, starting at $136.32 in March 2020, experiencing a slight decline and fluctuations through 2020, and then rising to a peak of $189.71 in March 2023. Following this peak, the share price exhibited a downward trend, falling to $135.31 by March 2025. This pattern indicates a period of growth culminating in early 2023, followed by a significant decline in the subsequent two years.

Book Value Per Share (BVPS) Trends

The book value per share generally increased over the entire period, starting at $9.70 in March 2020 and reaching $13.41 by March 2025. Although there were minor fluctuations, the overall trend was positive, with notable increases particularly between 2020 and 2022. Some intermittent decreases were observed, such as at the end of 2022 and early 2024, but these were relatively modest in the context of the overall upward movement.

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

The price-to-book ratio began at 14.05 in March 2020 and experienced a gradual decline to 10.09 by March 2025, indicating that the market valuation relative to book value has decreased over time. There was some volatility, including peaks above 15 in early 2023, but the general trajectory was downward, suggesting that the share price growth did not keep pace with increases in book value over the duration of the analysis.

Combined Insights

The data illustrate a scenario where the book value per share steadily improved, reflecting potential growth in the company's net assets or equity. However, the price per share, after peaking in 2023, declined towards 2025. The simultaneous decrease in the P/BV ratio suggests that the market's assessment of the company's value relative to its book value became more conservative post-2023 peak. This could imply changes in investor sentiment or external factors affecting valuation multiples despite the underlying book value growth.