PepsiCo (PEP): analysis in plain words
Is PepsiCo cheap or expensive? How it makes money, whether it grows and its risks, explained in plain words and with its official accounts.
PepsiCo (PEP) is listed on the Nasdaq and we classify it in consumer staples. Below are its key dated figures, how it makes money, how it compares with its sector, what works for and against PepsiCo according to those figures, and the questions people ask most about the stock. No buy or sell tips.
PepsiCo (PEP) key figures as of November 4, 2026
| Figure | Value | What it measures |
|---|---|---|
| Share price | $142.42 | Last price on November 4, 2026 |
| P/E ratio (TTM) | 17.9x | Price over earnings per share |
| Revenue growth | +5.6% | Latest quarter vs the same quarter a year earlier |
| Net margin (TTM) | 11.1% | Profit for every 100 of sales |
| Net debt / EBITDA | 2.1x | Years of operating profit to repay debt |
| Dividend yield | 4.31% | Annual dividend over price |
| Market cap | $194.1 billion | What the stock market values it at |
The PepsiCo figures come from Yahoo Finance, the same source the Fintols analysis uses, retrieved on November 4, 2026. Any PEP figure that is not available shows as N/A: we do not estimate it.
How PepsiCo makes money
PepsiCo sells snacks and drinks. In North America, its largest market, it reports food, including Lay's, Doritos, Cheetos, Tostitos and Quaker, separately from beverages such as Pepsi, Mountain Dew and Gatorade. Elsewhere it reports Latin America; Europe, Middle East and Africa; Asia Pacific; and its International Beverages Franchise.
Over the last 12 months, PepsiCo brought in revenue of $98.2 billion. For every 100 it sells, PepsiCo keeps 54.3 after the direct cost of what it sells (gross margin) and 16.9 after all operating costs (operating margin). With 306,000 full-time employees, that is about $321,000 of revenue per employee.
PepsiCo against its sector
To know whether a PepsiCo figure is high or low you have to put it next to similar companies. This table compares PepsiCo with the median of the 17 consumer staples companies Fintols covers, with data as of November 4, 2026.
| Figure | PepsiCo | consumer staples median |
|---|---|---|
| P/E | 17.9x | 21.3x (17) |
| Revenue growth | +5.6% | +3.6% (19) |
| Net margin | 11.1% | 12.8% (19) |
| Dividend yield | 4.31% | 3.19% (19) |
| Net debt / EBITDA | 2.1x | 1.7x (19) |
In short, against the typical consumer staples company, PepsiCo trades on a lower P/E, grows faster and pays a higher dividend yield. By size, PepsiCo ranks number 4 of 13 consumer staples companies quoted in USD on Fintols.
The bull case for PepsiCo
These are the strengths in the PepsiCo figures as of November 4, 2026:
- PepsiCo earns 52.2% a year on its shareholders' money (return on equity).
- For income seekers, PepsiCo pays a dividend yielding 4.31% at today's price, using 73% of its profit to fund it.
- PepsiCo generates real cash: $9.0 billion of free cash flow over 12 months, 4.7% of its stock market value.
The main risk for PepsiCo
The PepsiCo figures as of November 4, 2026 show no clear red flag (no heavy debt, no losses, no falling sales). Its main risk is the one built into its business: customers switching to cheaper store brands and rising prices for the raw materials it buys.
Frequently asked questions about PepsiCo
Is it a good time to buy PepsiCo stock?
Fintols does not tell you whether to buy or sell PepsiCo, and nobody knows what the price will do tomorrow. What we can show you is where it stands today. As of November 4, 2026, PepsiCo stock trades at $142.42, 17% below its 52-week high ($171.48) and 15% above its low ($123.47). Its P/E is 17.9x against a consumer staples median of 21.3x, and 16.5x on the earnings analysts expect over the next 12 months. With PepsiCo, as with any stock, timing matters less than understanding the business, investing for the long run and not betting everything on a single company.
Does PepsiCo pay a dividend?
Yes. As of November 4, 2026, PepsiCo pays $5.92 per share a year, which at today's price is a yield of 4.31%. It uses 73% of its profit to pay it. Its average dividend yield over the last five years is 3.05%. The consumer staples median on Fintols is 3.19%.
Is PepsiCo stock expensive?
It depends on what you compare it with. On P/E, PepsiCo trades at 17.9x its last 12 months of earnings: cheaper than the consumer staples median (21.3x). Including its debt, PepsiCo is valued at 11.9x its EBITDA (EV/EBITDA). A high P/E alone does not make PepsiCo expensive: it can be justified if earnings grow fast, and a low one can reflect a business in trouble.
Who are PepsiCo's competitors?
On Fintols we compare PepsiCo with Coca-Cola, Procter & Gamble and Philip Morris, which are also in consumer staples. As of November 4, 2026, Coca-Cola is worth $412.1 billion and trades on a P/E of 28.6; Procter & Gamble is worth $387.8 billion and trades on a P/E of 25.2; Philip Morris is worth $329.3 billion and trades on a P/E of 30.8. Each has a side-by-side comparison with PepsiCo below.
PepsiCo competitors
- Coca-Cola (KO) analysis · PepsiCo vs Coca-Cola comparison
- Procter & Gamble (PG) analysis · PepsiCo vs Procter & Gamble comparison
- Philip Morris (PM) analysis · PepsiCo vs Philip Morris comparison
To understand PepsiCo better
- Dividend Growth Investing: FCF Payout Ratio and Compounding
- P/E Ratio and EPS Explained: How to Read Them Without Traps
More companies like PepsiCo: consumer staples stocks, S&P 500 companies and S&P 100 companies. Open the full PEP analysis with its valuation and scenarios. Educational content about PepsiCo, not investment advice.