Stock Analysis on Net

PepsiCo Inc. (NASDAQ:PEP)

Common Stock Valuation Ratios (Price Multiples)

Microsoft Excel

Current Valuation Ratios

PepsiCo Inc., current price multiples

Microsoft Excel
PepsiCo Inc. Coca-Cola Co. Mondelēz International Inc. Food, Beverage & Tobacco Consumer Staples
Selected Financial Data
Current share price (P) $173.57
No. shares of common stock outstanding 1,374,429,271
Growth rate (g) 12.69%
 
Earnings per share (EPS) $6.60
Next year expected EPS $7.44
Operating profit per share $8.72
Sales per share $66.55
Book value per share (BVPS) $13.46
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 26.29 24.56 19.03 24.09 31.29
Price to next year expected earnings 23.33 22.58 17.69 22.08 28.68
Price-earnings-growth (PEG) 2.07 2.79 2.50 2.65 3.43
Price to operating profit (P/OP) 19.90 23.27 17.16 20.70 23.62
Price to sales (P/S) 2.61 5.75 2.62 3.44 1.55
Price to book value (P/BV) 12.89 10.15 3.33 8.19 8.06

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

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

PepsiCo Inc., historical price multiples

Microsoft Excel
Dec 30, 2023 Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
Price to earnings (P/E) 25.40 26.71 30.58 26.15 27.83
Price to operating profit (P/OP) 19.23 20.67 20.87 18.47 19.78
Price to sales (P/S) 2.52 2.75 2.93 2.65 3.03
Price to book value (P/BV) 12.45 13.88 14.52 13.84 13.76

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).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. PepsiCo Inc. P/E ratio decreased from 2021 to 2022 and from 2022 to 2023.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. PepsiCo Inc. P/OP ratio decreased from 2021 to 2022 and from 2022 to 2023.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. PepsiCo Inc. P/S ratio decreased from 2021 to 2022 and from 2022 to 2023.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. PepsiCo Inc. P/BV ratio decreased from 2021 to 2022 and from 2022 to 2023.

Price to Earnings (P/E)

PepsiCo Inc., historical P/E calculation, comparison to benchmarks

Microsoft Excel
Dec 30, 2023 Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
No. shares of common stock outstanding1 1,374,429,271 1,377,251,316 1,383,451,400 1,379,608,641 1,389,544,618
Selected Financial Data (US$)
Net income attributable to PepsiCo (in millions) 9,074 8,910 7,618 7,120 7,314
Earnings per share (EPS)2 6.60 6.47 5.51 5.16 5.26
Share price1, 3 167.67 172.78 168.37 134.97 146.47
Valuation Ratio
P/E ratio4 25.40 26.71 30.58 26.15 27.83
Benchmarks
P/E Ratio, Competitors5
Coca-Cola Co. 24.43 27.12 27.63 27.91 28.21
Mondelēz International Inc. 20.87 33.07 21.64 22.33 21.72
P/E Ratio, Sector
Food, Beverage & Tobacco 24.07 27.71 27.48 26.15 26.82
P/E Ratio, Industry
Consumer Staples 27.78 26.49 27.26 25.26 34.44

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 Data adjusted for splits and stock dividends.

2 2023 Calculation
EPS = Net income attributable to PepsiCo ÷ No. shares of common stock outstanding
= 9,074,000,000 ÷ 1,374,429,271 = 6.60

3 Closing price as at the filing date of PepsiCo Inc. Annual Report.

4 2023 Calculation
P/E ratio = Share price ÷ EPS
= 167.67 ÷ 6.60 = 25.40

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. PepsiCo Inc. P/E ratio decreased from 2021 to 2022 and from 2022 to 2023.

Price to Operating Profit (P/OP)

PepsiCo Inc., historical P/OP calculation, comparison to benchmarks

Microsoft Excel
Dec 30, 2023 Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
No. shares of common stock outstanding1 1,374,429,271 1,377,251,316 1,383,451,400 1,379,608,641 1,389,544,618
Selected Financial Data (US$)
Operating profit (in millions) 11,986 11,512 11,162 10,080 10,291
Operating profit per share2 8.72 8.36 8.07 7.31 7.41
Share price1, 3 167.67 172.78 168.37 134.97 146.47
Valuation Ratio
P/OP ratio4 19.23 20.67 20.87 18.47 19.78
Benchmarks
P/OP Ratio, Competitors5
Coca-Cola Co. 23.14 23.72 26.19 24.03 24.95
Mondelēz International Inc. 18.81 25.43 20.00 20.60 21.87
P/OP Ratio, Sector
Food, Beverage & Tobacco 20.69 22.60 22.81 21.01 22.26
P/OP Ratio, Industry
Consumer Staples 20.97 19.03 20.00 19.45 21.06

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 Data adjusted for splits and stock dividends.

2 2023 Calculation
Operating profit per share = Operating profit ÷ No. shares of common stock outstanding
= 11,986,000,000 ÷ 1,374,429,271 = 8.72

3 Closing price as at the filing date of PepsiCo Inc. Annual Report.

4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 167.67 ÷ 8.72 = 19.23

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. PepsiCo Inc. P/OP ratio decreased from 2021 to 2022 and from 2022 to 2023.

Price to Sales (P/S)

PepsiCo Inc., historical P/S calculation, comparison to benchmarks

Microsoft Excel
Dec 30, 2023 Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
No. shares of common stock outstanding1 1,374,429,271 1,377,251,316 1,383,451,400 1,379,608,641 1,389,544,618
Selected Financial Data (US$)
Net revenue (in millions) 91,471 86,392 79,474 70,372 67,161
Sales per share2 66.55 62.73 57.45 51.01 48.33
Share price1, 3 167.67 172.78 168.37 134.97 146.47
Valuation Ratio
P/S ratio4 2.52 2.75 2.93 2.65 3.03
Benchmarks
P/S Ratio, Competitors5
Coca-Cola Co. 5.72 6.02 6.99 6.55 6.75
Mondelēz International Inc. 2.87 2.85 3.24 2.99 3.25
P/S Ratio, Sector
Food, Beverage & Tobacco 3.44 3.65 4.06 3.71 4.14
P/S Ratio, Industry
Consumer Staples 1.38 1.45 1.50 1.40 1.37

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 Data adjusted for splits and stock dividends.

2 2023 Calculation
Sales per share = Net revenue ÷ No. shares of common stock outstanding
= 91,471,000,000 ÷ 1,374,429,271 = 66.55

3 Closing price as at the filing date of PepsiCo Inc. Annual Report.

4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= 167.67 ÷ 66.55 = 2.52

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. PepsiCo Inc. P/S ratio decreased from 2021 to 2022 and from 2022 to 2023.

Price to Book Value (P/BV)

PepsiCo Inc., historical P/BV calculation, comparison to benchmarks

Microsoft Excel
Dec 30, 2023 Dec 31, 2022 Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
No. shares of common stock outstanding1 1,374,429,271 1,377,251,316 1,383,451,400 1,379,608,641 1,389,544,618
Selected Financial Data (US$)
Total PepsiCo common shareholders’ equity (in millions) 18,503 17,149 16,043 13,454 14,786
Book value per share (BVPS)2 13.46 12.45 11.60 9.75 10.64
Share price1, 3 167.67 172.78 168.37 134.97 146.47
Valuation Ratio
P/BV ratio4 12.45 13.88 14.52 13.84 13.76
Benchmarks
P/BV Ratio, Competitors5
Coca-Cola Co. 10.09 10.73 11.74 11.20 13.26
Mondelēz International Inc. 3.65 3.34 3.29 2.88 3.08
P/BV Ratio, Sector
Food, Beverage & Tobacco 8.19 8.61 8.85 7.99 8.83
P/BV Ratio, Industry
Consumer Staples 7.15 7.11 7.05 6.37 6.15

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 Data adjusted for splits and stock dividends.

2 2023 Calculation
BVPS = Total PepsiCo common shareholders’ equity ÷ No. shares of common stock outstanding
= 18,503,000,000 ÷ 1,374,429,271 = 13.46

3 Closing price as at the filing date of PepsiCo Inc. Annual Report.

4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 167.67 ÷ 13.46 = 12.45

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. PepsiCo Inc. P/BV ratio decreased from 2021 to 2022 and from 2022 to 2023.