PEPNEUTRAL

PEP EV/EBITDA Analysis

12.6x

Updated 825h ago·SEC filings & market data

Key Takeaway

Enterprise value to EBITDA (EV/EBITDA) compares a company's total market value to its earnings before interest, taxes, depreciation, and amortization; a multiple of 12.6x means investors pay $12.60 for every dollar of operating profit.

Sector Performance

44th percentile

PEP

12.6x

Sector Median

13.6x

Sector Avg

-30.9x

Prior Period

12.1x(Jul 2026)

↓ Declining

📊

Deep Analysis

This is below the sector median of 13.8x, placing PEP in the 45th percentile among sector peers — slightly cheaper than the typical peer. Year-over-year change is not available, but quarter-over-quarter the multiple rose 4.8% from 12.1x to the current 12.6x. The combination of a below-median level and a rising short-term trend suggests moderate valuation compression is reversing, introducing some risk that the stock becomes less attractively priced. The overall NEUTRAL verdict is supported: the metric shows neither a strong discount nor a clear overvaluation, and the recent uptick does not signal a decisive shift.

Frequently Asked Questions

What does the EV/EBITDA tell investors about PEP?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

Who are PEP's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: SMTC (76.6x), SHOP (80.2x), OKTA (83.5x), TEAM (101.4x), STEM (102.7x).

📚

Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.