The Blancos defender believes that his side showed great team spirit to recover from a goal down to register a comprehensive win against the Valencia-based outfit
Los Merengues fell behind to Michel's first-half strike but goals from Gonzalo Higuain, Kaka, Cristiano Ronaldo and two from Mesut Ozil sealed an emphatic turnaround.
"We played well in the first half but they got ahead on the scoreboard with a goal," the 30-year-old centre half told Realmadrid.com.
"The team came together and the important thing is that we turned the score around."
Pepe also praised the quality of Higuain's equaliser, which came only five minutes after los Granotes had taken the lead.
"It was incredible. I’m really happy for him," the Portugal international enthused.
"It was a beautiful goal, very nice as seen from the pitch and I’m happy that he scored that goal."
The victory leaves los Blancos still in second, 13 points behind leaders Barcelona, and Pepe was keen to switch focus to Tuesday's Champions League quarter-final second leg against Galatasaray.
"It’s an important match. We have a solid advantage in the Champions League thanks to a great first-leg match [a 3-0 win last Wednesday], but we shouldn’t rely on that. It’s a good opponent and a difficult pitch," he concluded.