Is PepsiCo, Inc. overvalued or undervalued?

As of 25 August 2025, the valuation grade for PepsiCo, Inc. has moved from expensive to very expensive, indicating a significant concern regarding its valuation. The company appears to be overvalued based on its current metrics, including a P/E ratio of 23, a Price to Book Value of 13.12, and an EV to EBITDA of 15.61. In comparison, The Coca-Cola Co. has a P/E ratio of 38.37 and an EV to EBITDA of 35.39, while Monster Beverage Corp. shows a P/E of 41.05 and an EV to EBITDA of 29.06, further highlighting PepsiCo's relative overvaluation.
Additionally, the stock has underperformed against the S&P 500 across multiple time frames, with a year-to-date return of -7.45% compared to the S&P 500's 12.22%, and a one-year return of -19.68% versus 17.14% for the index. This underperformance reinforces the notion that PepsiCo is currently overvalued in the market.