Is PepsiCo, Inc. overvalued or undervalued?

As of 11 June 2025, the valuation grade for PepsiCo, Inc. has moved from fair to expensive, indicating that the company is currently overvalued. The key ratios reveal a P/E ratio of 23, a Price to Book Value of 13.12, and an EV to EBITDA of 15.61, which are significantly higher than some of its peers. For instance, The Coca-Cola Co. has a P/E of 44.30, while Keurig Dr Pepper, Inc. stands at a P/E of 19.36, suggesting that PepsiCo's valuation is not justified compared to its competitors.
In light of these metrics, PepsiCo appears overvalued given its current price of 129.09, especially when considering its recent stock performance, which has underperformed the S&P 500 across various time frames, including a 1-year return of -22.83% compared to the S&P's 10.26%. This combination of high valuation ratios and poor relative performance reinforces the conclusion that PepsiCo, Inc. is overvalued in the current market environment.