Assessing PepsiCo’s Valuation after Its 1Q18 Results
PepsiCo’s (PEP) 12-month forward PE (price-to-earnings) ratio increased ~1.0% to 17.9x on April 26 after the company’s fiscal 1Q18 results. As we discussed previously in this series, PepsiCo exceeded analysts’ revenue and earnings expectations for fiscal 1Q18. Coca-Cola (KO), which reported its 1Q18 results on April 24, was trading at a 12-month forward PE ratio of 20.1x as of April 26.