PEPNEUTRAL

PEP PEG Ratio Analysis

0.13x

Updated 149h ago·SEC filings & market data

Key Takeaway

The PEG ratio (price-to-earnings divided by earnings growth rate) measures whether a stock’s price is reasonable given its expected profit growth.

Sector Performance

11th percentile

PEP

0.13x

Sector Median

0.97x

Sector Avg

2.92x

Prior Period

0.90x(May 2026)

↑ Improving
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Deep Analysis

The PEG ratio (price-to-earnings divided by earnings growth rate) measures whether a stock’s price is reasonable given its expected profit growth.

A current value of 0.13x is very low, meaning the stock is priced at a fraction of its projected earnings growth — often a sign of potential undervaluation. Compared to the sector median of 0.92x, PEP’s ratio is 86% lower, placing it in the 11th percentile among sector peers (only 11% of peers have a lower PEG). Trend data is not available: year-over-year change is N/A, quarter-over-quarter change is N/A, and there is no historical trend over the last eight quarters. The combination of an extremely low PEG level with no trend information leaves uncertainty — the metric hints at a buying opportunity, but the lack of directional evidence prevents confirming if this undervaluation is consistent or temporary. This metric supports a more bullish tilt than the overall NEUTRAL verdict, but the absence of trend data and other factors likely keep the rating balanced.

Frequently Asked Questions

What does the PEG Ratio tell investors about PEP?

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

How is the PEG Ratio calculated?

PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.

Who are PEP's closest peers by PEG Ratio?

The closest peers by PEG Ratio include: EBAY (8.15x), VTR (8.27x), DOV (8.39x), MTD (8.61x), KR (9.25x).

The Formula

P/E Ratio / EPS Growth Rate

Why It Matters

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

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PEP

0.13x

Sector Median

0.97x

Sector Avg

2.92x

How PEP's PEG Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.