DEO PE Ratio & Valuation, Is DEO Overvalued

Historical Valuation

Diageo PLC (DEO) is now in the Undervalued zone, suggesting that its current forward PE ratio of 13.29 is considered Undervalued compared with the five-year average of 20.64. The fair price of Diageo PLC (DEO) is between 97.90 to 141.27 according to relative valuation method. Compared to the current price of 81.35 USD , Diageo PLC By Undervalued By 16.91%.

Relative Value

Fair Zone

97.90-141.27

Current Price：81.35

16.91%

Undervalued

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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Diageo PLC (DEO) has a current Price-to-Book (P/B) ratio of 4.33. Compared to its 3-year average P/B ratio of 9.25, the current P/B ratio is approximately -53.15% higher. Relative to its 5-year average P/B ratio of 10.02, the current P/B ratio is about -56.72% higher. Diageo PLC (DEO) has a Forward Free Cash Flow (FCF) yield of approximately 5.58%. Compared to its 3-year average FCF yield of 3.73%, the current FCF yield is approximately 49.46% lower. Relative to its 5-year average FCF yield of 3.55%, the current FCF yield is about 57.08% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for DEO competitors is 2.95, providing a benchmark for relative valuation. Diageo PLC Corp (DEO.N) exhibits a P/S ratio of --, which is -100% above the industry average. Given its robust revenue growth of %, this premium appears unsustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of DEO increased by 0.00% over the past 1 year(s). The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00% to the performance.

Overall, the performance of DEO in the past 1 year(s) is driven by Unknown.

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Frequently Asked Questions

Is DEO currently overvalued or undervalued?

What is Diageo PLC (DEO) fair value?

DEO's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. The fair price of Diageo PLC (DEO) is between 97.90 to 141.27 according to relative valuation method.

How does DEO's valuation metrics compare to the industry average?

The average P/S ratio for DEO's competitors is 2.95, providing a benchmark for relative valuation. Diageo PLC Corp (DEO) exhibits a P/S ratio of --, which is -100.00% above the industry average. Given its robust revenue growth of %, this premium appears unsustainable.

What is the current P/B ratio for Diageo PLC (DEO) as of Mar 11 2026?

As of Mar 11 2026, Diageo PLC (DEO) has a P/B ratio of 4.33. This indicates that the market values DEO at 4.33 times its book value.

What is the current FCF Yield for Diageo PLC (DEO) as of Mar 11 2026?

As of Mar 11 2026, Diageo PLC (DEO) has a FCF Yield of 5.58%. This means that for every dollar of Diageo PLC's market capitalization, the company generates 5.58 cents in free cash flow.

What is the current Forward P/E ratio for Diageo PLC (DEO) as of Mar 11 2026?

As of Mar 11 2026, Diageo PLC (DEO) has a Forward P/E ratio of 13.29. This means the market is willing to pay $13.29 for every dollar of Diageo PLC's expected earnings over the next 12 months.

What is the current Forward P/S ratio for Diageo PLC (DEO) as of Mar 11 2026?

As of Mar 11 2026, Diageo PLC (DEO) has a Forward P/S ratio of 2.42. This means the market is valuing DEO at $2.42 for every dollar of expected revenue over the next 12 months.

DEO Valuation