PepsiCo's Valuation Adjusted to Very Expensive Amid Flat Financial Performance

PepsiCo, Inc., a prominent player in the beverages industry, has recently undergone an adjustment in its evaluation. The revision in its score reflects a shift in the valuation grade, now categorized as very expensive. This change is influenced by several key financial metrics that highlight the company's current market position.
The price-to-earnings (P/E) ratio stands at 23, while the price-to-book value is noted at 13.12. Additionally, the enterprise value to earnings before interest and taxes (EV to EBIT) ratio is recorded at 19.89, and the EV to EBITDA ratio is at 15.61. The enterprise value to capital employed ratio is 4.82, with an EV to sales ratio of 3.07. Notably, PepsiCo boasts a dividend yield of 195.25%, alongside a return on capital employed (ROCE) of 24.23% and a return on equity (ROE) of 57.25%.

Despite these metrics, the company has experienced flat financial performance in the quarter ending June 2025, with an earnings per share (EPS) of USD 0.92. Over the past year, PepsiCo has generated a return of -14.85%, indicating a decline in profits by 1.2%. The company has consistently underperformed against the benchmark, including the S&P 500, over the last three years.

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