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 PS ratio of 92.99 is considered Undervalued compared with the five-year average of 21.05. The fair price of Diageo PLC (DEO) is between +Inf to +Inf according to relative valuation methord. Compared to the current price of 91.35 USD , Diageo PLC is Undervalued By Fair.
Relative Value
Fair Zone
+Inf-+Inf
Current Price：91.35
Fair
Undervalued
0.00
PE
1Y
3Y
5Y
Trailing
Forward
11.63
EV/EBITDA
Diageo PLC. (DEO) has a current EV/EBITDA of 11.63. The 5-year average EV/EBITDA is 16.59. The thresholds are as follows: Strongly Undervalued below 10.87, Undervalued between 10.87 and 13.73, Fairly Valued between 19.45 and 13.73, Overvalued between 19.45 and 22.31, and Strongly Overvalued above 22.31. The current Forward EV/EBITDA of 11.63 falls within the Undervalued range.
13.22
EV/EBIT
Diageo PLC. (DEO) has a current EV/EBIT of 13.22. The 5-year average EV/EBIT is 18.53. The thresholds are as follows: Strongly Undervalued below 12.21, Undervalued between 12.21 and 15.37, Fairly Valued between 21.69 and 15.37, Overvalued between 21.69 and 24.85, and Strongly Overvalued above 24.85. The current Forward EV/EBIT of 13.22 falls within the Undervalued range.
92.99
PS
Diageo PLC. (DEO) has a current PS of 92.99. The 5-year average PS is 5.50. The thresholds are as follows: Strongly Undervalued below -12.80, Undervalued between -12.80 and -3.65, Fairly Valued between 14.64 and -3.65, Overvalued between 14.64 and 23.79, and Strongly Overvalued above 23.79. The current Forward PS of 92.99 falls within the Strongly Overvalued range.
11.92
P/OCF
Diageo PLC. (DEO) has a current P/OCF of 11.92. The 5-year average P/OCF is 19.86. The thresholds are as follows: Strongly Undervalued below 11.37, Undervalued between 11.37 and 15.62, Fairly Valued between 24.11 and 15.62, Overvalued between 24.11 and 28.35, and Strongly Overvalued above 28.35. The current Forward P/OCF of 11.92 falls within the Undervalued range.
16.51
P/FCF
Diageo PLC. (DEO) has a current P/FCF of 16.51. The 5-year average P/FCF is 26.70. The thresholds are as follows: Strongly Undervalued below 16.40, Undervalued between 16.40 and 21.55, Fairly Valued between 31.84 and 21.55, Overvalued between 31.84 and 36.99, and Strongly Overvalued above 36.99. The current Forward P/FCF of 16.51 falls within the Undervalued range.
Diageo PLC (DEO) has a current Price-to-Book (P/B) ratio of 18.63. Compared to its 3-year average P/B ratio of 9.63 , the current P/B ratio is approximately 93.42% higher. Relative to its 5-year average P/B ratio of 10.19, the current P/B ratio is about 82.84% higher. Diageo PLC (DEO) has a Forward Free Cash Flow (FCF) yield of approximately 5.11%. Compared to its 3-year average FCF yield of 3.52%, the current FCF yield is approximately 45.23% lower. Relative to its 5-year average FCF yield of 3.47% , the current FCF yield is about 47.32% lower.
18.63
P/B
Median3y
9.63
Median5y
10.19
5.11
FCF Yield
Median3y
3.52
Median5y
3.47
Competitors Valuation Multiple
The average P/S ratio for DEO's competitors is 84.43, providing a benchmark for relative valuation. Diageo PLC Corp (DEO) exhibits a P/S ratio of 92.99, which is 10.13% 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
Performance Decomposition
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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FAQ
Is Diageo PLC (DEO) currently overvalued or undervalued?
What is Diageo PLC (DEO) fair value?
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What is the current P/B ratio for Diageo PLC (DEO) as of Nov 18 2025?
What is the current FCF Yield for Diageo PLC (DEO) as of Nov 18 2025?
What is the current Forward P/E ratio for Diageo PLC (DEO) as of Nov 18 2025?