PepsiCoXSWX:PEP 90 Debt-to-EBITDA is 2.58 as of Jun. 2026, which is 8% below its 10-year median of 2.79. GuruFocus rates XSWX:PEP with a GF Score™ of 90/100 and a GF Value™ of CHF136.08. The stock has 2 warning signs investors should review. Among 97 Beverages - Non-Alcoholic companies, PepsiCo ranks worse than 70.1% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for PepsiCo's Debt-to-EBITDA or its related term are showing as below:
XSWX:PEP'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 2.48 Med: 2.79 Max: 3.37
Current: 2.86
During the past 13 years, the highest Debt-to-EBITDA Ratio of PepsiCo was 3.37. The lowest was 2.48. And the median was 2.79.
XSWX:PEP's Debt-to-EBITDA is ranked worse than 70.1% of 97
companies
in the Beverages - Non-Alcoholic industry
Industry Median: 1.26
vs XSWX:PEP: 2.86
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
PepsiCo Debt-to-EBITDA Related Terms
PepsiCo Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for PepsiCo's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XSWX:PEP vs MNST, KDP, KO: Debt-to-EBITDA Comparison
For the Beverages - Non-Alcoholic subindustry, PepsiCo's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
PepsiCo Debt-to-EBITDA vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, PepsiCo's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where PepsiCo's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Jun. 2026) EBITDA data.
PepsiCo (XSWX:PEP) has a Debt-to-EBITDA of 2.58 as of Jun. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on PepsiCo. This is near median its historical median of 2.79. Over the past decade, PepsiCo's Debt-to-EBITDA has ranged from 2.48 to 3.37. According to the industry distribution chart, PepsiCo ranks #68 out of 97 companies in the Beverages - Non-Alcoholic industry, placing it in the top 70.1%.
Is PepsiCo's Debt-to-EBITDA too high?
PepsiCo's current Debt-to-EBITDA of 2.58 is near median its 10-year median of 2.79. Over the past 10 years, this metric has ranged from a low of 2.48 to a high of 3.37. The Beverages - Non-Alcoholic industry median Debt-to-EBITDA is 1.26. PepsiCo's value of 2.58 is 104.8% above this industry median. Based on the distribution chart, PepsiCo ranks #68 out of 97 companies in the Beverages - Non-Alcoholic industry, which is below the industry midpoint. Overall, PepsiCo has a GF Score™ of 90/100, reflecting its overall financial health beyond just this single metric.
How does PepsiCo's Debt-to-EBITDA compare to MNST and KDP?
According to the Beverages - Non-Alcoholic industry distribution chart, PepsiCo ranks #68 out of 97 companies for Debt-to-EBITDA. This places PepsiCo in the lower half of its industry. The industry median Debt-to-EBITDA is 1.26. PepsiCo's value of 2.58 is 104.8% above this benchmark. Historically, PepsiCo's own Debt-to-EBITDA has ranged from 2.48 to 3.37 over the past decade. While the company's 10-year median is 2.79 vs. the industry median of 1.26, PepsiCo has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Beverages - Non-Alcoholic company?
The median Debt-to-EBITDA among Beverages - Non-Alcoholic companies is 1.26, based on 97 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PepsiCo's current Debt-to-EBITDA of 2.58 is 104.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on PepsiCo. For the Beverages - Non-Alcoholic industry, the median Debt-to-EBITDA is 1.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PepsiCo's current Debt-to-EBITDA is 2.58, which is near median its own 10-year median of 2.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PepsiCo stock overvalued right now?
PepsiCo (XSWX:PEP) has a current Debt-to-EBITDA of 2.58. The stock's GF Value™ is CHF136.08, compared to a current price of CHF112.00 — trading 17.7% below its estimated fair value. The current Debt-to-EBITDA is 2.58, which is near median its 10-year median of 2.79 and 104.8% above the Beverages - Non-Alcoholic industry median of 1.26. PepsiCo's overall GF Score™ is 90/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For PepsiCo (XSWX:PEP), the current Debt-to-EBITDA is 2.58 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is PepsiCo (XSWX:PEP) Overvalued in 2026?
Based on GuruFocus' analysis, PepsiCo stock appears to be undervalued.
The current stock price of CHF112.00 is trading 17.7% below its estimated GF Value™ of CHF136.08.
Key valuation signals for XSWX:PEP:
Debt-to-EBITDA: 2.58 (near median its 10-year median of 2.79)
GF Value™: CHF136.08 vs. price of CHF112.00 (17.7% below fair value)
Industry Position: 104.8% above the Beverages - Non-Alcoholic median (#68 of 97)
No single metric tells the full story. See the XSWX:PEP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PepsiCo is a global leader in snacks and beverages, owning well-known household brands including Pepsi, Mountain Dew, Gatorade, Lay's, Cheetos, and Doritos, among others. The company dominates the global savory snacks market and also ranks as the second-largest beverage provider in the world (behind Coca-Cola) with diversified exposure to carbonated soft drinks, or CSD, as well as water, sports, and energy drink offerings. Convenience foods account for approximately 58% of its total revenue, with beverages making up the rest. Pepsi owns the bulk of its manufacturing and distribution capacity in the US, but uses bottlers overseas for beverages. International markets made up 41% of total sales and 46% of operating profits before corporate expenses in 2025.
90GF Score
Get the complete analysis for XSWX:PEP
Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XSWX:PEP has been successfully added to your 
