Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. PepsiCo's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was CHF948 Mil. PepsiCo's average total debt for the quarter that ended in Mar. 2026 was CHF40,639 Mil. Therefore, PepsiCo's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 2.33%.
PepsiCo (XSWX:PEP) Effective Interest Rate on Debt % Explanation
Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.
PepsiCo Effective Interest Rate on Debt % Related Terms
PepsiCo Effective Interest Rate on Debt % Historical Data
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The historical data trend for PepsiCo's Effective Interest Rate on Debt % 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: Effective Interest Rate on Debt % Comparison
For the Beverages - Non-Alcoholic subindustry, PepsiCo's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, PepsiCo's Effective Interest Rate on Debt % distribution charts can be found below:
* The bar in red indicates where PepsiCo's Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data,
the Interest Expense data used here is four times the quarterly (Mar. 2026) interest expense data.
Effective Interest Rate on Debt % is displayed in the 30-year financial page.
What does a Effective Interest Rate on Debt % of 2.33% mean?
PepsiCo (XSWX:PEP) has a Effective Interest Rate on Debt % of 2.33% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on PepsiCo and its competitors.
Is PepsiCo's Effective Interest Rate on Debt % too high?
PepsiCo's current Effective Interest Rate on Debt % is 2.33%. Overall, PepsiCo has a GF Score™ of 89/100, reflecting its overall financial health beyond just this single metric.
How does PepsiCo's Effective Interest Rate on Debt % compare to MNST and KDP?
PepsiCo's Effective Interest Rate on Debt % of 2.33% can be compared against companies in the Beverages - Non-Alcoholic industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Beverages - Non-Alcoholic company?
A good Effective Interest Rate on Debt % depends on the Beverages - Non-Alcoholic industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on PepsiCo and its competitors. PepsiCo's current Effective Interest Rate on Debt % is 2.33%. 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 Effective Interest Rate on Debt % of 2.33%. The stock's GF Value™ is CHF134.39, compared to a current price of CHF115.00 — trading 14.4% below its estimated fair value. The current Effective Interest Rate on Debt % is 2.33%. 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 Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For PepsiCo (XSWX:PEP), the current Effective Interest Rate on Debt % is 2.33% as of Mar. 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 CHF115.00 is trading 14.4% below its estimated GF Value™ of CHF134.39.
Key valuation signals for XSWX:PEP:
Effective Interest Rate on Debt %: 2.33%
GF Value™: CHF134.39 vs. price of CHF115.00 (14.4% below fair value)
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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