PepsiCoMEX:PEP -2.45%82 Interest Coverage is 10.67 as of Mar. 2026, which is 7% above its 10-year median of 9.99. GuruFocus rates MEX:PEP with a GF Score™ of 82/100 and a GF Value™ of MXN3,034.55 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 90 Beverages - Non-Alcoholic companies, PepsiCo ranks worse than 51.11% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. PepsiCo's
Operating Income
for the
three
months ended in Mar. 2026 was MXN57,939 Mil. PepsiCo's Interest Expense for the
three
months ended in Mar. 2026 was MXN-5,428 Mil.
PepsiCo's interest coverage for the quarter that ended in Mar. 2026 was 10.67.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for PepsiCo's Interest Coverage or its related term are showing as below:
MEX:PEP'
s Interest Coverage Range Over the Past 10 Years
Min: 5.99 Med: 9.99 Max: 15.77
Current: 12.19
MEX:PEP's Interest Coverage is ranked worse than 51.11% of 90
companies
in the Beverages - Non-Alcoholic industry
Industry Median: 12.32
vs MEX:PEP: 12.19
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
PepsiCo Interest Coverage Related Terms
PepsiCo Interest Coverage Historical Data
* Premium members only.
The historical data trend for PepsiCo's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
MEX:PEP vs MNST, KO, KDP: Interest Coverage Comparison
For the Beverages - Non-Alcoholic subindustry, PepsiCo's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, PepsiCo's Interest Coverage distribution charts can be found below:
* The bar in red indicates where PepsiCo's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (MEX:PEP) has a Interest Coverage of 10.67 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on PepsiCo and its competitors. This is near median its historical median of 9.99. Over the past decade, PepsiCo's Interest Coverage has ranged from 5.99 to 15.77. According to the industry distribution chart, PepsiCo ranks #46 out of 90 companies in the Beverages - Non-Alcoholic industry, placing it in the top 51.1%.
Is PepsiCo's Interest Coverage too high?
PepsiCo's current Interest Coverage of 10.67 is near median its 10-year median of 9.99. Over the past 10 years, this metric has ranged from a low of 5.99 to a high of 15.77. The Beverages - Non-Alcoholic industry median Interest Coverage is 12.32. PepsiCo's value of 10.67 is 13.4% below this industry median. Based on the distribution chart, PepsiCo ranks #46 out of 90 companies in the Beverages - Non-Alcoholic industry, which is below the industry midpoint. Overall, PepsiCo has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PepsiCo's Interest Coverage compare to MNST and KO?
According to the Beverages - Non-Alcoholic industry distribution chart, PepsiCo ranks #46 out of 90 companies for Interest Coverage. This places PepsiCo in the lower half of its industry. The industry median Interest Coverage is 12.32. PepsiCo's value of 10.67 is 13.4% below this benchmark. Historically, PepsiCo's own Interest Coverage has ranged from 5.99 to 15.77 over the past decade. While the company's 10-year median is 9.99 vs. the industry median of 12.32, PepsiCo has consistently been below 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 Interest Coverage for a Beverages - Non-Alcoholic company?
The median Interest Coverage among Beverages - Non-Alcoholic companies is 12.32, based on 90 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PepsiCo's current Interest Coverage of 10.67 is 13.4% below 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on PepsiCo and its competitors. For the Beverages - Non-Alcoholic industry, the median Interest Coverage is 12.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PepsiCo's current Interest Coverage is 10.67, which is near median its own 10-year median of 9.99. 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?
Based on GuruFocus' analysis, PepsiCo (MEX:PEP) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN3,034.55, compared to a current price of MXN2,448.56 — trading 19.3% below its estimated fair value. The current Interest Coverage is 10.67, which is near median its 10-year median of 9.99 and 13.4% below the Beverages - Non-Alcoholic industry median of 12.32. PepsiCo's overall GF Score™ is 82/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For PepsiCo (MEX:PEP), the current Interest Coverage is 10.67 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 (MEX:PEP) Overvalued in 2026?
Based on GuruFocus' analysis, PepsiCo stock appears to be undervalued.
The current stock price of MXN2,448.56 is trading 19.3% below its estimated GF Value™ of MXN3,034.55.
GuruFocus considers PepsiCo to be Modestly Undervalued.
Key valuation signals for MEX:PEP:
Interest Coverage: 10.67 (near median its 10-year median of 9.99)
GF Value™: MXN3,034.55 vs. price of MXN2,448.56 (19.3% below fair value)
Industry Position: 13.4% below the Beverages - Non-Alcoholic median (#46 of 90)
No single metric tells the full story. See the MEX: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.
82GF Score
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