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 14.22 is considered Undervalued compared with the five-year average of 21.01. The fair price of Diageo PLC (DEO) is between 100.28 to 143.77 according to relative valuation methord. Compared to the current price of 92.06 USD , Diageo PLC is Undervalued By 8.2%.
Relative Value
Fair Zone
100.28-143.77
Current Price：92.06
8.2%
Undervalued
13.69
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 16.45. The thresholds are as follows: Strongly Undervalued below 10.65, Undervalued between 10.65 and 13.55, Fairly Valued between 19.35 and 13.55, Overvalued between 19.35 and 22.25, and Strongly Overvalued above 22.25. The current Forward EV/EBITDA of 11.63 falls within the Undervalued range.
13.19
EV/EBIT
Diageo PLC. (DEO) has a current EV/EBIT of 13.19. The 5-year average EV/EBIT is 18.38. The thresholds are as follows: Strongly Undervalued below 11.97, Undervalued between 11.97 and 15.18, Fairly Valued between 21.59 and 15.18, Overvalued between 21.59 and 24.79, and Strongly Overvalued above 24.79. The current Forward EV/EBIT of 13.19 falls within the Undervalued range.
2.62
PS
Diageo PLC. (DEO) has a current PS of 2.62. The 5-year average PS is 4.46. The thresholds are as follows: Strongly Undervalued below 2.16, Undervalued between 2.16 and 3.31, Fairly Valued between 5.61 and 3.31, Overvalued between 5.61 and 6.77, and Strongly Overvalued above 6.77. The current Forward PS of 2.62 falls within the Undervalued range.
11.78
P/OCF
Diageo PLC. (DEO) has a current P/OCF of 11.78. The 5-year average P/OCF is 19.68. The thresholds are as follows: Strongly Undervalued below 10.95, Undervalued between 10.95 and 15.31, Fairly Valued between 24.04 and 15.31, Overvalued between 24.04 and 28.40, and Strongly Overvalued above 28.40. The current Forward P/OCF of 11.78 falls within the Undervalued range.
16.29
P/FCF
Diageo PLC. (DEO) has a current P/FCF of 16.29. The 5-year average P/FCF is 26.49. The thresholds are as follows: Strongly Undervalued below 15.85, Undervalued between 15.85 and 21.17, Fairly Valued between 31.82 and 21.17, Overvalued between 31.82 and 37.14, and Strongly Overvalued above 37.14. The current Forward P/FCF of 16.29 falls within the Undervalued range.
Diageo PLC (DEO) has a current Price-to-Book (P/B) ratio of 4.68. Compared to its 3-year average P/B ratio of 9.32 , the current P/B ratio is approximately -49.77% higher. Relative to its 5-year average P/B ratio of 10.01, the current P/B ratio is about -53.24% higher. Diageo PLC (DEO) has a Forward Free Cash Flow (FCF) yield of approximately 5.24%. Compared to its 3-year average FCF yield of 3.58%, the current FCF yield is approximately 46.15% lower. Relative to its 5-year average FCF yield of 3.51% , the current FCF yield is about 49.35% lower.
4.50
P/B
Median3y
9.32
Median5y
10.01
5.16
FCF Yield
Median3y
3.58
Median5y
3.51
Competitors Valuation Multiple
The average P/S ratio for DEO's competitors is 1.31, providing a benchmark for relative valuation. Diageo PLC Corp (DEO) exhibits a P/S ratio of 2.62, which is 100.00% 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
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