PepsiCo Inc PEG Ratio
Data as of August 04, 2026
PEG Ratio
2.83
PE Ratio (TTM)
18.23
EPS (TTM)
$7.62
Sector
Beverages
How It's Calculated
2.83 = 18.23 ÷ Growth Rate
What This Means
PepsiCo Inc's PEG ratio of 2.83 is above 2, suggesting the stock may be overvalued relative to its growth rate. Investors are paying a premium for each unit of earnings growth.
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
The PEG ratio adjusts the PE multiple for expected earnings growth, helping compare fast-growing and slow-growing names on a more equal footing. For PepsiCo Inc, a PEG near 1 is often described as fairly valued relative to growth, though the growth estimate itself can change quickly with guidance revisions.
Sector Comparison
Among Beverages names on our S&P 100 coverage, PepsiCo Inc's PEG ratio of 2.83 can be compared with peers such as KO (3.24), KDP (1.36). 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.
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Frequently Asked Questions
What is PEP's PEG ratio?
PEG adjusts PE for expected earnings growth: PEG ≈ PE ÷ earnings growth rate. PepsiCo Inc's PEG of 2.83 is a shorthand for growth-at-a-reasonable-price comparisons.
Does PEG suggest growth at a reasonable price?
PEG above 1.5 (2.83) may mean the market prices in high growth — or that growth estimates lag reality.
What are limitations of PEG for PEP?
PEG depends on a single growth estimate, ignores balance sheet risk, and can mislead when earnings are volatile. Use it with PE, margins, and Beverages peers — not as a standalone verdict.
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