PepsiCo, Inc. EV/EBITDA
Data as of June 01, 2026
EV/EBITDA
12.79
Enterprise Value
$239.13B
EBITDA (TTM)
$18.70B
Sector
Consumer Defensive
How It's Calculated
12.79 = $239.13B ÷ $18.70B
What This Means
PepsiCo, Inc.'s EV/EBITDA of 12.8 is in a moderate range for Consumer Defensive.
About PepsiCo, Inc.
PepsiCo, Inc. (PEP) operates in the Consumer Defensive sector, specifically in Beverages - Non-Alcoholic. With a market capitalization of about $197.10B, it ranks as a large-cap stock — a major established company.
Shares recently traded near $144.19, within a 52-week range of $127.60 to $171.48 (-15.9% from the high, +13.0% from the low). Beta of 0.39 indicates relatively lower volatility versus the market.
Trailing profit margin is about 9.1%, signaling modest profitability that investors should weigh against growth plans.
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 Consumer Defensive. 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 12.79x EV/EBITDA, PepsiCo, Inc. (PEP) carries a mid-range EV/EBITDA multiple that investors often stack-rank within the sector. Enterprise value of about $239.13B and EBITDA near $18.70B 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 Consumer Defensive names on our S&P 100 coverage, PepsiCo, Inc.'s EV/EBITDA of 12.79 can be compared with peers such as WMT (22.14), COST (30.63), KO (22.31). Sector context helps interpretation, but each company's growth profile and balance sheet differ — use multiple metrics before drawing conclusions. View all Consumer Defensive stocks.
Key Takeaways
- PEP is grouped in the Consumer Defensive sector for peer comparisons.
- Recent beta of 0.39 suggests lower-than-market price sensitivity.
- Trailing profit margin of 9.1% 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.
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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 12.79 — common for comparing leveraged companies in Consumer Defensive.
Is 12.79 high or low vs peers?
Among Consumer Defensive peers (e.g. COST (30.63), KO (22.31), WMT (22.14)), PEP's 12.79 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.
Calculate the ev/ebitda for any stock with our free calculator.
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