PepsiCo‘s CAPE ratio

The CAPE ratio for PepsiCo compares its current stock price to the average inflation-adjusted earnings over the past 10 years. As a stable, diversified company in beverages and snacks, PepsiCo usually has a moderate CAPE ratio. A high CAPE ratio may suggest overvaluation, indicating lower future returns, while a low CAPE ratio could signal undervaluation and growth potential. Investors use PepsiCo’s CAPE ratio to evaluate its long-term valuation, considering its consistent earnings and strong market position in the global food and beverage industry.