Stock Analysis on Net

PepsiCo Inc. (NASDAQ:PEP)

Enterprise Value to EBITDA (EV/EBITDA)

Microsoft Excel

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

PepsiCo Inc., EBITDA calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 30, 2023 Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
Net income attributable to PepsiCo 9,074 8,910 7,618 7,120 7,314
Add: Net income attributable to noncontrolling interest 81 68 61 55 39
Add: Income tax expense 2,262 1,727 2,142 1,894 1,959
Earnings before tax (EBT) 11,417 10,705 9,821 9,069 9,312
Add: Interest expense 1,437 1,119 1,988 1,252 1,135
Earnings before interest and tax (EBIT) 12,854 11,824 11,809 10,321 10,447
Add: Depreciation and amortization 2,948 2,763 2,710 2,548 2,432
Earnings before interest, tax, depreciation and amortization (EBITDA) 15,802 14,587 14,519 12,869 12,879

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. PepsiCo Inc. EBITDA increased from 2021 to 2022 and from 2022 to 2023.

Enterprise Value to EBITDA Ratio, Current

PepsiCo Inc., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 274,775
Earnings before interest, tax, depreciation and amortization (EBITDA) 15,802
Valuation Ratio
EV/EBITDA 17.39
Benchmarks
EV/EBITDA, Competitors1
Coca-Cola Co. 18.82
Mondelēz International Inc. 13.53
EV/EBITDA, Sector
Food, Beverage & Tobacco 17.15
EV/EBITDA, Industry
Consumer Staples 18.65

Based on: 10-K (reporting date: 2023-12-30).

1 Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.


Enterprise Value to EBITDA Ratio, Historical

PepsiCo Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Dec 30, 2023 Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 264,687 271,808 267,386 220,903 229,939
Earnings before interest, tax, depreciation and amortization (EBITDA)2 15,802 14,587 14,519 12,869 12,879
Valuation Ratio
EV/EBITDA3 16.75 18.63 18.42 17.17 17.85
Benchmarks
EV/EBITDA, Competitors4
Coca-Cola Co. 18.69 20.83 19.52 19.66 21.79
Mondelēz International Inc. 14.65 21.64 15.62 15.14 18.69
EV/EBITDA, Sector
Food, Beverage & Tobacco 17.08 20.00 18.35 17.76 19.64
EV/EBITDA, Industry
Consumer Staples 16.73 16.63 15.91 15.18 18.37

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

1 See details »

2 See details »

3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 264,687 ÷ 15,802 = 16.75

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. PepsiCo Inc. EV/EBITDA ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.