PepsiCo Inc EV/EBITDA
Data as of August 04, 2026
EV/EBITDA
13.27
Enterprise Value
$233.45B
EBITDA (TTM)
$17.59B
Sector
Beverages
How It's Calculated
13.27 = $233.45B ÷ $17.59B
What This Means
PepsiCo Inc's EV/EBITDA of 13.3 is in a moderate range for Beverages.
About PepsiCo Inc
PepsiCo Inc (PEP) operates in the Beverages sector, specifically in Beverages. With a market capitalization of about $190.48B, it ranks as a large-cap stock — a major established company.
Shares recently traded near $139.63, within a 52-week range of $133.73 to $171.48 (-18.6% from the high, +4.4% from the low). Beta of 0.37 indicates relatively lower volatility versus the market.
Trailing profit margin is about 10.8%, signaling a solid profit margin for its industry.
Understanding This Metric
EV/EBITDA is widely used when comparing companies with different debt loads because enterprise value includes net debt while EBITDA approximates operating cash earnings power. For PepsiCo Inc, the ratio should be read with growth, capex needs, and cycle position in Beverages. Pair EV/EBITDA with free cash flow yield and net debt metrics before drawing conclusions — especially when EBITDA is depressed or boosted by one-time items.
Using This Number in Practice
Near 13.27x EV/EBITDA, PepsiCo Inc (PEP) carries a mid-range EV/EBITDA multiple that investors often stack-rank within the sector. Enterprise value of about $233.45B and EBITDA near $17.59B form the ratio — adjust for one-time items before treating the headline multiple as comparable.
Credit and LBO workflows often sort names on EV/EBITDA before drilling into free cash flow and maintenance capex. Pair this view with the EV/EBITDA calculator and the PEP metrics hub for related valuation pages.
Sector Comparison
Among Beverages names on our S&P 100 coverage, PepsiCo Inc's EV/EBITDA of 13.27 can be compared with peers such as KO (25.13), KDP (18.60). Sector context helps interpretation, but each company's growth profile and balance sheet differ — use multiple metrics before drawing conclusions. View all Beverages stocks.
Key Takeaways
- PEP is grouped in the Beverages sector for peer comparisons.
- Recent beta of 0.37 suggests lower-than-market price sensitivity.
- Trailing profit margin of 10.8% provides context for how much earnings support the headline multiple.
Related Tools & Guides
Explore calculators and guides connected to this metric, or view all metrics for PEP.
Learn the full workflow
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Frequently Asked Questions
What is PEP's EV/EBITDA?
EV/EBITDA compares enterprise value to operating earnings before interest, taxes, depreciation, and amortization. PepsiCo Inc's ratio is about 13.27 — common for comparing leveraged companies in Beverages.
Is 13.27 high or low vs peers?
Among Beverages peers (e.g. KO (25.13), KDP (18.60)), PEP's 13.27 should be read with growth, capex, and debt levels.
When is EV/EBITDA misleading?
EBITDA ignores capex, working capital, and stock-based comp; negative or tiny EBITDA makes the ratio meaningless. Cross-check with free cash flow and net debt.
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