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PepsiCoXSWX:PEP 89 Debt-to-Equity is 2.41 as of Jun. 2026, which is 4% below its 10-year median of 2.52. GuruFocus rates XSWX:PEP with a GF Score™ of 89/100 and a GF Value™ of CHF133.47. The stock has 2 warning signs investors should review. Among 106 Beverages - Non-Alcoholic companies, PepsiCo ranks worse than 96.23% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for PepsiCo's Debt-to-Equity or its related term are showing as below:
XSWX:PEP'
s Debt-to-Equity Range Over the Past 10 Years
Min: 2.07 Med: 2.52 Max: 4.02
Current: 2.41
During the past 13 years, the highest Debt-to-Equity Ratio of PepsiCo was 4.02. The lowest was 2.07. And the median was 2.52.
XSWX:PEP's Debt-to-Equity is ranked worse than 96.23% of 106
companies
in the Beverages - Non-Alcoholic industry
Industry Median: 0.26
vs XSWX:PEP: 2.41
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
PepsiCo Debt-to-Equity Related Terms
PepsiCo Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for PepsiCo's Debt-to-Equity 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-Equity Comparison
For the Beverages - Non-Alcoholic subindustry, PepsiCo's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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-Equity vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, PepsiCo's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where PepsiCo's Debt-to-Equity 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.
PepsiCo (XSWX:PEP) has a Debt-to-Equity of 2.41 as of Jun. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on PepsiCo and its competitors. This is near median its historical median of 2.52. Over the past decade, PepsiCo's Debt-to-Equity has ranged from 2.07 to 4.02. According to the industry distribution chart, PepsiCo ranks #102 out of 106 companies in the Beverages - Non-Alcoholic industry, placing it in the top 96.2%.
Is PepsiCo's Debt-to-Equity too high?
PepsiCo's current Debt-to-Equity of 2.41 is near median its 10-year median of 2.52. Over the past 10 years, this metric has ranged from a low of 2.07 to a high of 4.02. The Beverages - Non-Alcoholic industry median Debt-to-Equity is 0.26. PepsiCo's value of 2.41 is 826.9% above this industry median. Based on the distribution chart, PepsiCo ranks #102 out of 106 companies in the Beverages - Non-Alcoholic industry, which is in the bottom quartile relative to peers. Overall, PepsiCo has a GF Score™ of 89/100, reflecting its overall financial health beyond just this single metric.
How does PepsiCo's Debt-to-Equity compare to MNST and KDP?
According to the Beverages - Non-Alcoholic industry distribution chart, PepsiCo ranks #102 out of 106 companies for Debt-to-Equity. This places PepsiCo in the lower half of its industry. The industry median Debt-to-Equity is 0.26. PepsiCo's value of 2.41 is 826.9% above this benchmark. Historically, PepsiCo's own Debt-to-Equity has ranged from 2.07 to 4.02 over the past decade. While the company's 10-year median is 2.52 vs. the industry median of 0.26, 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-Equity for a Beverages - Non-Alcoholic company?
The median Debt-to-Equity among Beverages - Non-Alcoholic companies is 0.26, based on 106 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PepsiCo's current Debt-to-Equity of 2.41 is 826.9% 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-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on PepsiCo and its competitors. For the Beverages - Non-Alcoholic industry, the median Debt-to-Equity is 0.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PepsiCo's current Debt-to-Equity is 2.41, which is near median its own 10-year median of 2.52. 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-Equity of 2.41. The stock's GF Value™ is CHF133.47, compared to a current price of CHF111.00 — trading 16.8% below its estimated fair value. The current Debt-to-Equity is 2.41, which is near median its 10-year median of 2.52 and 826.9% above the Beverages - Non-Alcoholic industry median of 0.26. PepsiCo's overall GF Score™ is 89/100 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-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For PepsiCo (XSWX:PEP), the current Debt-to-Equity is 2.41 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 CHF111.00 is trading 16.8% below its estimated GF Value™ of CHF133.47.
Key valuation signals for XSWX:PEP:
Debt-to-Equity: 2.41 (near median its 10-year median of 2.52)
GF Value™: CHF133.47 vs. price of CHF111.00 (16.8% below fair value)
Industry Position: 826.9% above the Beverages - Non-Alcoholic median (#102 of 106)
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.
89GF Score
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