` Comparison: EMI vs DGE - Alpha Spread

EMI
vs
DGE

Over the past 12 months, EMI has significantly outperformed DGE, delivering a return of +31% compared to the DGE's 25% drop.

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EMI
DGE
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Valuation Comparison

EMI Intrinsic Value
8.85 PHP
Overvaluation 44%
Intrinsic Value
Price
DGE Intrinsic Value
1 871.91 GBX
Undervaluation 14%
Intrinsic Value
Price
Company Last Price Intrinsic Value DCF Value Relative Value Wall St Target
Emperador Inc
XPHS:EMI
15.9 PHP
Diageo PLC
LSE:DGE
1 603 GBX
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Valuation Scenario:
Bear Case
Base Case
Bull Case

Growth Comparison

Growth Over Time
EMI, DGE

EMI
DGE
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Revenue
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Company LTM Historical Growth Growth Streak % Positive Years Max Drawdown Volatility Forecasted Growth
3 Years 5 Years 10 Years 1 Year 3 Years
Emperador Inc
Revenue
Diageo PLC
Revenue

All metrics are calculated based on data from the last 10 years.

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Profitability Comparison

Free Cash Flow
EMI, DGE

EMI
DGE
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Free Cash Flow
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Company LTM Average Historical Growth FCF Margin Conversion
3 Years 5 Years 3 Years 5 Years 10 Years
Emperador Inc
XPHS:EMI
Diageo PLC
LSE:DGE
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What is Free Cash Flow?

Gross Margin

EMI
32.3%
DGE
60.1%
LTM 3Y Avg 5Y Avg 10Y Avg
Emperador Inc
Diageo PLC

Operating Margin

EMI
15.8%
DGE
21.4%
LTM 3Y Avg 5Y Avg 10Y Avg
Emperador Inc
Diageo PLC

Net Margin

EMI
10.6%
DGE
11.6%
LTM 3Y Avg 5Y Avg 10Y Avg
Emperador Inc
Diageo PLC

FCF Margin

EMI
2.5%
DGE
13.4%
LTM 3Y Avg 5Y Avg 10Y Avg
Emperador Inc
Diageo PLC

ROE

EMI
6.6%
DGE
22.3%
LTM 3Y Avg 5Y Avg 10Y Avg
Emperador Inc
Diageo PLC

ROA

EMI
4%
DGE
5%
LTM 3Y Avg 5Y Avg 10Y Avg
Emperador Inc
Diageo PLC

ROIC

EMI
5.8%
DGE
8.1%
LTM 3Y Avg 5Y Avg 10Y Avg
Emperador Inc
Diageo PLC

ROCE

EMI
7.3%
DGE
11.7%
LTM 3Y Avg 5Y Avg 10Y Avg
Emperador Inc
Diageo PLC

Solvency Comparison

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Balance Sheet Comparison
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Stocks Performance

Stocks Performance
EMI, DGE

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Performance Gap
EMI, DGE

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EMI
DGE
Difference
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Performance By Year
EMI, DGE

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EMI
DGE
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Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.

Warren Buffett