As of March 28, Coca-Cola (KO) and PepsiCo (PEP) were trading at 12-month forward PE (price-to-earnings) multiples of 22.7x and 22.0x, respectively. Smaller peer Dr Pepper Snapple (DPS) was trading at a 12-month forward PE of 21.2x.
Remember, the 12-month forward PE is calculated by dividing a company’s current stock price by its forecasted EPS (earnings per share) for the next four quarters. The 12-month forward PE differs among peers based on several factors, including their business models, growth expectations, and risk-return profiles.
View more information: https://marketrealist.com/2017/03/coca-cola-pepsico-dr-pepper-snapple-comparing-valuation/