PepsiCoXSWX:PEP +0.87%89 5-Year Yield-on-Cost % is 5.80 as of Jul. 04, 2026, which is 44% above its 10-year median of 4.02. GuruFocus rates XSWX:PEP with a GF Score™ of 89/100 and a GF Value™ of CHF139.17. The stock has 2 warning signs investors should review. Among 79 Beverages - Non-Alcoholic companies, PepsiCo ranks better than 73.42% on this metric.
PepsiCo's yield on cost for the quarter that ended in Mar. 2026 was 5.80.
The historical rank and industry rank for PepsiCo's 5-Year Yield-on-Cost % or its related term are showing as below:
XSWX:PEP'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 3.33 Med: 4.02 Max: 5.95
Current: 5.8
During the past 13 years, PepsiCo's highest Yield on Cost was 5.95. The lowest was 3.33. And the median was 4.02.
XSWX:PEP's 5-Year Yield-on-Cost % is ranked better than 73.42% of 79
companies
in the Beverages - Non-Alcoholic industry
Industry Median: 3.92
vs XSWX:PEP: 5.80
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
PepsiCo 5-Year Yield-on-Cost % Related Terms
XSWX:PEP vs MNST, KDP, KO: 5-Year Yield-on-Cost % Comparison
For the Beverages - Non-Alcoholic subindustry, PepsiCo's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, PepsiCo's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where PepsiCo's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of PepsiCo is calculated as
PepsiCo (XSWX:PEP) has a 5-Year Yield-on-Cost % of 5.80 as of Jul. 04, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on PepsiCo and its competitors. This is 44% above median its historical median of 4.02. Over the past decade, PepsiCo's 5-Year Yield-on-Cost % has ranged from 3.33 to 5.95. According to the industry distribution chart, PepsiCo ranks #21 out of 79 companies in the Beverages - Non-Alcoholic industry, placing it in the top 26.6%.
Is PepsiCo's 5-Year Yield-on-Cost % too high?
PepsiCo's current 5-Year Yield-on-Cost % of 5.80 is 44% above median its 10-year median of 4.02. Over the past 10 years, this metric has ranged from a low of 3.33 to a high of 5.95. The Beverages - Non-Alcoholic industry median 5-Year Yield-on-Cost % is 3.92. PepsiCo's value of 5.80 is 48% above this industry median. Based on the distribution chart, PepsiCo ranks #21 out of 79 companies in the Beverages - Non-Alcoholic industry, which is above 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 5-Year Yield-on-Cost % compare to MNST and KDP?
According to the Beverages - Non-Alcoholic industry distribution chart, PepsiCo ranks #21 out of 79 companies for 5-Year Yield-on-Cost %. This puts PepsiCo in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 3.92. PepsiCo's value of 5.80 is 48% above this benchmark. Historically, PepsiCo's own 5-Year Yield-on-Cost % has ranged from 3.33 to 5.95 over the past decade. While the company's 10-year median is 4.02 vs. the industry median of 3.92, 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 5-Year Yield-on-Cost % for a Beverages - Non-Alcoholic company?
The median 5-Year Yield-on-Cost % among Beverages - Non-Alcoholic companies is 3.92, based on 79 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PepsiCo's current 5-Year Yield-on-Cost % of 5.80 is 48% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on PepsiCo and its competitors. For the Beverages - Non-Alcoholic industry, the median 5-Year Yield-on-Cost % is 3.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PepsiCo's current 5-Year Yield-on-Cost % is 5.80, which is 44% above median its own 10-year median of 4.02. 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 5-Year Yield-on-Cost % of 5.80. The stock's GF Value™ is CHF139.17, compared to a current price of CHF116.00 — trading 16.6% below its estimated fair value. The current 5-Year Yield-on-Cost % is 5.80, which is 44% above median its 10-year median of 4.02 and 48% above the Beverages - Non-Alcoholic industry median of 3.92. 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 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For PepsiCo (XSWX:PEP), the current 5-Year Yield-on-Cost % is 5.80 as of Jul. 04, 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 CHF116.00 is trading 16.6% below its estimated GF Value™ of CHF139.17.
Key valuation signals for XSWX:PEP:
5-Year Yield-on-Cost %: 5.80 (44% above median its 10-year median of 4.02)
GF Value™: CHF139.17 vs. price of CHF116.00 (16.6% below fair value)
Industry Position: 48% above the Beverages - Non-Alcoholic median (#21 of 79)
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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