PepsiCo Inc. (NASDAQ:PEP)

The valuation ratios exhibit varied trends over the observed period. Generally, a pattern of initial increases followed by declines and subsequent stabilization, or renewed increases, is apparent across most metrics. The period from March 2022 to December 2022 generally shows increasing valuations, while 2023 demonstrates a correction, followed by relative stability and some increases into the forecast period of 2024 and 2025.

Price to Earnings (P/E)

The Price to Earnings ratio increased from 23.57 in March 2022 to a peak of 39.71 in March 2023. A subsequent decline was observed, reaching 20.55 by December 2024. The ratio then experienced an increase, concluding at 27.01 in December 2025. This suggests periods of heightened investor optimism followed by correction and then renewed, though more moderate, optimism.

Price to Operating Profit (P/OP)

Similar to the P/E ratio, the Price to Operating Profit ratio rose from 16.97 in March 2022 to 29.45 in March 2023. A consistent decrease followed, reaching a low of 15.27 in December 2024. The ratio then showed a modest increase, ending at 19.36 in December 2025. The correlation with the P/E ratio suggests a consistent valuation pattern based on profitability.

Price to Sales (P/S)

The Price to Sales ratio demonstrated a relatively stable trend compared to the earnings-based ratios. It began at 2.96 in March 2022, decreased to 2.47 in September 2023, and then increased to 2.37 in December 2025. The fluctuations were less pronounced, indicating a more consistent valuation relative to revenue. The lower values in late 2023 and 2024 suggest a period where revenue was considered more favorably valued by investors.

Price to Book Value (P/BV)

The Price to Book Value ratio increased from 13.16 in March 2022 to 15.34 in March 2023, then decreased to 10.09 in March 2025. A final increase to 10.91 was observed in December 2025. This ratio indicates how much investors are willing to pay for each dollar of net assets, and the decline suggests a decreasing premium placed on the company’s book value over time, followed by a slight recovery.

Overall, the observed ratios suggest a period of increasing valuation through early 2023, followed by a correction and stabilization. The ratios indicate a potential shift in investor sentiment, with a decreased willingness to pay premiums for earnings, operating profit, and book value in the latter part of the period, though some recovery is noted in the most recent observations.

The price-to-earnings (P/E) ratio exhibited considerable fluctuation throughout the observed period, spanning from March 2022 to December 2025. Initial values indicated a relatively stable range, followed by a period of increased volatility and a concluding trend towards stabilization.

Initial Period (Mar 2022 - Dec 2022)

The P/E ratio began at 23.57 and generally increased, reaching a peak of 26.71 in December 2022. This suggests a growing investor confidence, or potentially, increasing market expectations relative to earnings during this timeframe. The ratio remained within a narrow band, fluctuating between 23.57 and 26.71, indicating a moderate level of valuation consistency.

Significant Increase & Subsequent Decline (Mar 2023 - Sep 2023)

A substantial increase in the P/E ratio was observed in March 2023, reaching 39.71. This was followed by a decline to 27.27 by September 2023. The initial spike suggests a significant shift in investor sentiment, potentially driven by positive news or revised growth forecasts. The subsequent decline could indicate a correction, or a reassessment of the company’s prospects.

Volatility & Lower Values (Dec 2023 - Dec 2024)

The P/E ratio continued to fluctuate between 20.55 and 26.37. A notable decrease to 20.55 occurred in December 2024, representing the lowest value recorded during the entire period. This decrease coincided with a significant drop in share price, suggesting potential market concerns or broader economic factors impacting valuation. The ratio demonstrated increased volatility during this period.

Stabilization (Mar 2025 - Dec 2025)

The final six months of the observed period show a degree of stabilization, with the P/E ratio ranging between 26.37 and 27.01. This suggests a potential settling of investor expectations and a more consistent valuation. The ratio concluded at 27.01, indicating a return to levels observed earlier in the period, albeit with a history of significant interim fluctuations.

Overall, the P/E ratio demonstrated a dynamic pattern, characterized by periods of growth, significant spikes, declines, and eventual stabilization. The fluctuations suggest sensitivity to market conditions and investor sentiment, requiring further investigation to determine the underlying drivers of these changes.

The Price to Operating Profit (P/OP) ratio exhibits considerable fluctuation over the observed period, spanning from March 2022 to December 2025. Initially, the ratio demonstrated a relatively stable pattern, followed by a period of significant volatility and a concluding trend towards stabilization.

Initial Period (Mar 2022 - Dec 2022)

From March 2022 through December 2022, the P/OP ratio fluctuated within a narrow range, beginning at 16.97 and peaking at 20.67. This suggests a generally consistent market valuation relative to operating profitability during this timeframe. A slight upward trend is discernible, culminating in a ratio of 20.67 by the end of 2022.

Volatility and Peak (Mar 2023 - Sep 2023)

The first half of 2023 witnessed a substantial increase in the P/OP ratio, reaching a high of 29.45 in March 2023. This indicates a significant premium placed on the company’s operating profits by the market. However, this was followed by a marked decline to 20.33 by September 2023, suggesting a correction or shift in investor sentiment. The operating profit per share also decreased during this period, contributing to the ratio’s decline.

Stabilization and Decline (Dec 2023 - Dec 2024)

From December 2023 to December 2024, the P/OP ratio exhibited a more stable pattern, fluctuating between 15.27 and 19.23. A general downward trend is observed, with the ratio decreasing from 19.23 to 15.27. This suggests a decreasing market valuation relative to operating profits, potentially influenced by broader market conditions or company-specific factors. The share price experienced a notable decrease during this period, contributing to the lower ratio.

Recent Period (Mar 2025 - Dec 2025)

The final period analyzed shows a slight recovery in the P/OP ratio, increasing from 14.55 in March 2025 to 19.36 in December 2025. This suggests a renewed investor confidence or a reassessment of the company’s operating profitability. The share price also increased during this period, contributing to the ratio’s increase. However, the ratio remains below the peaks observed in early 2023.

Overall, the P/OP ratio demonstrates a dynamic relationship with both share price and operating profit per share. The observed fluctuations suggest sensitivity to market conditions and investor expectations. The recent stabilization and slight increase may indicate a positive shift in market perception, but continued monitoring is warranted.

The price-to-sales ratio exhibited fluctuations over the observed period, generally trending downwards before a recent increase. Initial values indicated a ratio around 2.96, followed by a gradual decline through the end of 2022. A subsequent increase was noted in early 2023, before another decline later in the year. The most recent periods show a potential upward trend.

Initial Period (Mar 19, 2022 – Dec 31, 2022)

The price-to-sales ratio began at 2.96 and decreased to 2.75 over this timeframe. This suggests a relative decrease in the price investors were willing to pay for each dollar of sales during this period. The decline was not substantial, remaining within a narrow range.

2023 Fluctuations

The ratio experienced volatility in 2023, rising to 2.97 in March before falling to 2.47 by September. A slight recovery to 2.52 was observed in December. This suggests shifting investor sentiment or changing expectations regarding the company’s sales performance throughout the year.

Recent Trend (2024 – Jun 14, 2025)

A notable decrease was observed in the first half of 2024, with the ratio falling to a low of 2.03 in March. The ratio then showed some recovery, reaching 2.17 in June, and 2.14 in September. The most recent value, as of June 14, 2025, is 2.37, indicating a potential upward trend. This recent increase could be attributed to improved investor confidence or anticipated future sales growth.

Relationship to Sales per Share

While the price-to-sales ratio fluctuated, sales per share generally increased throughout the period, moving from 58.48 to 68.73. The observed declines in the price-to-sales ratio did not consistently correlate with decreases in sales per share, suggesting that changes in the share price were a more significant driver of the ratio’s movements.

Overall, the price-to-sales ratio demonstrates a dynamic pattern, influenced by both share price and sales per share. The recent upward trend warrants further investigation to determine its sustainability and underlying causes.

The price-to-book value (P/BV) ratio exhibited fluctuations over the observed period, generally trending downwards before stabilizing in the latter quarters. Initial values indicated a P/BV around 13.16, followed by a decrease to 12.02, then a subsequent increase to a peak of 15.34 before resuming a downward trajectory.

Initial Period (Mar 19, 2022 – Dec 31, 2022)

The P/BV ratio began at 13.16 and experienced a moderate decline to 12.30 by September 2022. A slight recovery was noted at the end of the year, reaching 13.88. This initial period suggests a relatively stable valuation relative to book value, with some volatility.

Downward Trend & Recovery (Mar 25, 2023 – Sep 9, 2023)

A significant increase in the P/BV ratio was observed in March 2023, reaching 15.34. This was followed by a substantial decline to 12.02 by September 2023. This period demonstrates increased investor optimism followed by a correction, potentially influenced by market conditions or company-specific news.

Stabilization & Recent Performance (Dec 30, 2023 – Jun 14, 2025)

From December 2023 through June 2025, the P/BV ratio generally stabilized, fluctuating between approximately 10.09 and 14.60. The lowest value, 10.09, occurred in December 2024. The most recent value, in June 2025, is 10.91. This suggests a more consistent valuation relative to book value in recent quarters, albeit at a lower level than observed in the earlier part of the period.

Book Value per Share (BVPS) Influence

The observed fluctuations in the P/BV ratio are influenced by both share price movements and changes in book value per share. While the share price experienced volatility, the BVPS also showed some variation, contributing to the overall changes in the P/BV ratio. A consistent increase in BVPS from 13.16 to 14.93 over the period is noted, which partially offsets the impact of share price declines on the P/BV ratio.

Overall, the P/BV ratio demonstrates a pattern of initial stability, a period of significant fluctuation, and a subsequent trend towards stabilization at a lower valuation. The ratio’s movement reflects a complex interplay between market sentiment, share price performance, and underlying book value changes.