PepsiCoXSWX:PEP +0.90%89 3-Year ROIIC % is 10.30 as of Dec. 2025, which is 16% below its 10-year median of 12.27. GuruFocus rates XSWX:PEP with a GF Score™ of 89/100 and a GF Value™ of CHF137.29. The stock has 2 warning signs investors should review. Among 106 Beverages - Non-Alcoholic companies, PepsiCo ranks worse than 50.94% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
PepsiCo's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 10.30%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for PepsiCo's 3-Year ROIIC % or its related term are showing as below:
XSWX:PEP's 3-Year ROIIC % is ranked worse than 50.94% of 106
companies
in the Beverages - Non-Alcoholic industry
Industry Median: 10.505
vs XSWX:PEP: 10.30
PepsiCo (XSWX:PEP) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
PepsiCo 3-Year ROIIC % Related Terms
PepsiCo 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for PepsiCo's 3-Year ROIIC % 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: 3-Year ROIIC % Comparison
For the Beverages - Non-Alcoholic subindustry, PepsiCo's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, PepsiCo's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where PepsiCo's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
PepsiCo (XSWX:PEP) has a 3-Year ROIIC % of 10.30 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on PepsiCo and its competitors. This is 16% below median its historical median of 12.27. According to the industry distribution chart, PepsiCo ranks #54 out of 106 companies in the Beverages - Non-Alcoholic industry, placing it in the top 50.9%.
Is PepsiCo's 3-Year ROIIC % too high?
PepsiCo's current 3-Year ROIIC % of 10.30 is 16% below median its 10-year median of 12.27. The Beverages - Non-Alcoholic industry median 3-Year ROIIC % is 10.51. PepsiCo's value of 10.30 is 2% below this industry median. Based on the distribution chart, PepsiCo ranks #54 out of 106 companies in the Beverages - Non-Alcoholic industry, which is below the industry midpoint. Overall, PepsiCo has a GF Score™ of 89/100, reflecting its overall financial health beyond just this single metric.
How does PepsiCo's 3-Year ROIIC % compare to MNST and KDP?
According to the Beverages - Non-Alcoholic industry distribution chart, PepsiCo ranks #54 out of 106 companies for 3-Year ROIIC %. This places PepsiCo in the lower half of its industry. The industry median 3-Year ROIIC % is 10.51. PepsiCo's value of 10.30 is 2% below this benchmark. While the company's 10-year median is 12.27 vs. the industry median of 10.51, 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 3-Year ROIIC % for a Beverages - Non-Alcoholic company?
The median 3-Year ROIIC % among Beverages - Non-Alcoholic companies is 10.51, based on 106 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PepsiCo's current 3-Year ROIIC % of 10.30 is 2% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on PepsiCo and its competitors. For the Beverages - Non-Alcoholic industry, the median 3-Year ROIIC % is 10.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PepsiCo's current 3-Year ROIIC % is 10.30, which is 16% below median its own 10-year median of 12.27. 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 3-Year ROIIC % of 10.30. The stock's GF Value™ is CHF137.29, compared to a current price of CHF112.00 — trading 18.4% below its estimated fair value. The current 3-Year ROIIC % is 10.30, which is 16% below median its 10-year median of 12.27 and 2% below the Beverages - Non-Alcoholic industry median of 10.51. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For PepsiCo (XSWX:PEP), the current 3-Year ROIIC % is 10.30 as of Dec. 2025. 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 18.4% below its estimated GF Value™ of CHF137.29.
Key valuation signals for XSWX:PEP:
3-Year ROIIC %: 10.30 (16% below median its 10-year median of 12.27)
GF Value™: CHF137.29 vs. price of CHF112.00 (18.4% below fair value)
Industry Position: 2% below the Beverages - Non-Alcoholic median (#54 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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