PEP

Potentially Overvalued

PepsiCo, Inc. — PEG Ratio Analysis

7.07

PEG Ratio

7.07

Growth Rate Source

Good Data Quality5-Year EPS CAGR

Current Price

$146.12

TTM EPS

$6.37

P/E Ratio

22.94

Growth Rate

3.2%

5-Year EPS CAGR

Sector

Consumer Defensive

Beverages - Non-Alcoholic

Calculated

6/17/2026

12:42:54 PM

Peer Comparison

Sample Size

6 peers

Industry Median PEG

2.29

25th Percentile

1.88

75th Percentile

4.14

PEP PEG (7.07) vs Industry Median (2.29): 208% premium

Symbol	Company	PEG	P/E	Growth	vs PEP
COKE	Coca-Cola Consolidated, Inc.	0.77	25.5	33.3%	-89%
CELH	Celsius Holdings, Inc.	1.88	83.2	44.3%	-73%
KO	The Coca-Cola Company	2.27	25.2	11.1%	-68%
KDP	Keurig Dr Pepper Inc.	2.32	23.7	10.2%	-67%
PG	The Procter & Gamble Company	4.14	22.3	5.4%	-41%

How to Interpret PEG Ratio

PEG < 1.0 — Potentially Undervalued. The stock may be priced below its earnings growth rate, suggesting a potential buying opportunity.

PEG 1.0–2.0 — Fairly Valued. The stock price is roughly in line with its earnings growth. A PEG of 1.0 is often considered "fair value."

PEG > 2.0 — Potentially Overvalued. The stock may be priced above what its earnings growth justifies.

Limitations:PEG ratios are less reliable for financial firms (earnings driven by interest margins), companies with negative/zero earnings growth, and hypergrowth companies (>100% growth) where the ratio may appear misleadingly low. Always use PEG alongside other valuation metrics.