Is PepsiCo, Inc. overvalued or undervalued?

As of 21 November 2025, the valuation grade for PepsiCo, Inc. moved from very expensive to expensive, indicating a slight improvement in perceived value but still reflecting high valuation levels. The company appears overvalued based on its current metrics, with a P/E ratio of 23, a Price to Book Value of 13.12, and an EV to EBITDA of 15.61. Comparatively, The Coca-Cola Co. has a higher P/E ratio of 38.37 and an EV to EBITDA of 35.39, while Monster Beverage Corp. shows an even higher P/E of 41.05, reinforcing that PepsiCo's valuation is on the higher end relative to its peers.
In terms of recent performance, PepsiCo's stock has underperformed against the S&P 500, with a year-to-date return of -3.77% compared to the S&P 500's 12.26%. This trend continues over longer periods, with a 3-year return of -20.83% versus the S&P 500's 67.17%, suggesting that the stock's high valuation may not be justified by its performance.