PepsiCo, Inc. PEG Ratio
Data as of June 01, 2026
PEG Ratio
1.55
PE Ratio (TTM)
22.64
EPS (TTM)
$6.37
Sector
Consumer Defensive
How It's Calculated
1.55 = 22.64 ÷ Growth Rate
What This Means
PepsiCo, Inc.'s PEG ratio of 1.55 is in the fairly valued range. The stock's PE ratio is roughly in line with its expected earnings growth rate.
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
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 Consumer Defensive names on our S&P 100 coverage, PepsiCo, Inc.'s PEG ratio of 1.55 can be compared with peers such as WMT (4.56), COST (4.86), KO (4.05). 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 PEG ratio?
PEG adjusts PE for expected earnings growth: PEG ≈ PE ÷ earnings growth rate. PepsiCo, Inc.'s PEG of 1.55 is a shorthand for growth-at-a-reasonable-price comparisons.
Does PEG suggest growth at a reasonable price?
PEG above 1.5 (1.55) 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 Consumer Defensive peers — not as a standalone verdict.
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