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 20.78. The fair price of Diageo PLC (DEO) is between 102.81 to 149.00 according to relative valuation methord. Compared to the current price of 86.95 USD , Diageo PLC is Undervalued By 15.43%.
Relative Value
Fair Zone
102.81-149.00
Current Price：86.95
15.43%
Undervalued
P/E
EV/EBITDA
EV/EBIT
P/S
P/OCF
P/FCF
1Y
3Y
5Y
Trailing
Forward
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 9.30 , the current P/B ratio is approximately -53.40% higher. Relative to its 5-year average P/B ratio of 10.02, the current P/B ratio is about -56.74% 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 3.66%, the current FCF yield is approximately 52.40% lower. Relative to its 5-year average FCF yield of 3.55% , the current FCF yield is about 57.33% lower.
P/B
Median3y
9.30
Median5y
10.02
FCF Yield
Median3y
3.66
Median5y
3.55
Competitors Valuation Multiple
AI Analysis for DEO
The average P/S ratio for DEO competitors is 1.70, providing a benchmark for relative valuation. Diageo PLC Corp (DEO.N) exhibits a P/S ratio of 2.42, which is 42.58% above the industry average. Given its robust revenue growth of %, this premium appears unsustainable.
Performance Decomposition
AI Analysis for DEO
1Y
3Y
5Y
Market capitalization of DEO increased by 0.00% over the past 1 year. 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 is driven by Unknown.
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Frequently Asked Questions
Is DEO currently overvalued or undervalued?
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 20.78. The fair price of Diageo PLC (DEO) is between 102.81 to 149.00 according to relative valuation methord. Compared to the current price of 86.95 USD , Diageo PLC is Undervalued By 15.43% .
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 102.81 to 149.00 according to relative valuation methord.
How does DEO's valuation metrics compare to the industry average?
The average P/S ratio for DEO's competitors is 1.70, providing a benchmark for relative valuation. Diageo PLC Corp (DEO) exhibits a P/S ratio of 2.42, which is 42.58% 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 Jan 09 2026?
As of Jan 09 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 Jan 09 2026?
As of Jan 09 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 Jan 09 2026?
As of Jan 09 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 Jan 09 2026?
As of Jan 09 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.