DEO Valuation

Diageo PLC

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111.830

-0.34(-0.303%)1D

Overview
Forecast
Valuation
Earnings

DEO Relative Valuation

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. If the market price exceeds this fair value range, DEO is overvalued; if below, it's undervalued.

Historical Valuation

Diageo PLC (DEO) is now in the Undervalued zone, suggesting that its current forward PE ratio of 16.24 is considered Undervalued compared with the five-year average of 21.45. The fair price of Diageo PLC (DEO) is between 116.15 to 158.95 according to relative valuation methord. Compared to the current price of 111.83 USD , Diageo PLC is Undervalued By 3.72%.

Relative Value

Fair Zone

116.15-158.95

Current Price：111.83

3.72%

Undervalued

16.52

Trailing

Forward

12.80

EV/EBITDA

Diageo PLC. (DEO) has a current EV/EBITDA of 12.80. The 5-year average EV/EBITDA is 16.80. The thresholds are as follows: Strongly Undervalued below 11.38, Undervalued between 11.38 and 14.09, Fairly Valued between 19.52 and 14.09, Overvalued between 19.52 and 22.23, and Strongly Overvalued above 22.23. The current Forward EV/EBITDA of 12.80 falls within the Undervalued range.

14.60

EV/EBIT

Diageo PLC. (DEO) has a current EV/EBIT of 14.60. The 5-year average EV/EBIT is 18.76. The thresholds are as follows: Strongly Undervalued below 12.75, Undervalued between 12.75 and 15.75, Fairly Valued between 21.77 and 15.75, Overvalued between 21.77 and 24.78, and Strongly Overvalued above 24.78. The current Forward EV/EBIT of 14.60 falls within the Undervalued range.

3.03

Diageo PLC. (DEO) has a current PS of 3.03. The 5-year average PS is 4.59. The thresholds are as follows: Strongly Undervalued below 2.43, Undervalued between 2.43 and 3.51, Fairly Valued between 5.66 and 3.51, Overvalued between 5.66 and 6.74, and Strongly Overvalued above 6.74. The current Forward PS of 3.03 falls within the Undervalued range.

13.68

P/OCF

Diageo PLC. (DEO) has a current P/OCF of 13.68. The 5-year average P/OCF is 20.10. The thresholds are as follows: Strongly Undervalued below 12.14, Undervalued between 12.14 and 16.12, Fairly Valued between 24.08 and 16.12, Overvalued between 24.08 and 28.06, and Strongly Overvalued above 28.06. The current Forward P/OCF of 13.68 falls within the Undervalued range.

18.86

P/FCF

Diageo PLC. (DEO) has a current P/FCF of 18.86. The 5-year average P/FCF is 26.88. The thresholds are as follows: Strongly Undervalued below 17.20, Undervalued between 17.20 and 22.04, Fairly Valued between 31.72 and 22.04, Overvalued between 31.72 and 36.56, and Strongly Overvalued above 36.56. The current Forward P/FCF of 18.86 falls within the Undervalued range.

Diageo PLC (DEO) has a current Price-to-Book (P/B) ratio of 5.52. Compared to its 3-year average P/B ratio of 9.83 , the current P/B ratio is approximately -43.81% higher. Relative to its 5-year average P/B ratio of 10.25, the current P/B ratio is about -46.10% higher. Diageo PLC (DEO) has a Forward Free Cash Flow (FCF) yield of approximately 4.36%. Compared to its 3-year average FCF yield of 3.42%, the current FCF yield is approximately 27.66% lower. Relative to its 5-year average FCF yield of 3.40% , the current FCF yield is about 28.34% lower.

22.41

P/B

Median3y

9.83

Median5y

10.25

4.36

FCF Yield

Median3y

3.42

Median5y

3.40

Competitors Valuation Multiple

The average P/S ratio for DEO's competitors is 1.64, providing a benchmark for relative valuation. Diageo PLC Corp (DEO) exhibits a P/S ratio of 3.03, which is 84.95% above the industry average. Given its robust revenue growth of %, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Constellation Brands Inc

Molson Coors Beverage Co

Boston Beer Company Inc

Willamette Valley Vineyards Inc

Loss

-1.32%

23.04M

Performance Decomposition

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.