Diageo PLC
NYSE:DEO
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EV/EBITDA
Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBITDA returns to its 3-Year Average (11), the stock would be worth $104.79 (32% upside from current price).
| Scenario | EV/EBITDA Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 8.3 | $79.37 |
0%
|
| 3-Year Average | 11 | $104.79 |
+32%
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| 5-Year Average | 12.2 | $115.7 |
+46%
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| Industry Average | 0 | $0.29 |
-100%
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| Country Average | 0 | $0.19 |
-100%
|
Forward EV/EBITDA
Today’s price vs future ebitda
| Today's Enterprise Value | EBITDA | Forward EV/EBITDA | ||
|---|---|---|---|---|
|
$54.4B
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/ |
Jan 2026
£6B
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= |
|
|
$54.4B
|
/ |
Jun 2026
£6.7B
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= |
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$54.4B
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/ |
Jun 2027
£6.7B
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= |
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$54.4B
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/ |
Jun 2028
£7B
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= |
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Forward EV/EBITDA shows whether today’s EV/EBITDA still looks high or low once future ebitda are taken into account.
Peer Comparison
| Market Cap | EV/EBITDA | P/E | ||||
|---|---|---|---|---|---|---|
| UK |
|
Diageo PLC
NYSE:DEO
|
32.9B USD | 8.3 | 13.6 | |
| CN |
|
Kweichow Moutai Co Ltd
SSE:600519
|
1.8T CNY | 14.9 | 21.5 | |
| CN |
|
Wuliangye Yibin Co Ltd
SZSE:000858
|
390.6B CNY | 7.1 | 13.9 | |
| ZA |
D
|
Distell Group Holdings Ltd
JSE:DGH
|
40.2B ZAR | 11.6 | 16.9 | |
| US |
|
Constellation Brands Inc
NYSE:STZ
|
27.6B USD | 11.1 | 16.4 | |
| CN |
|
Shanxi Xinghuacun Fen Wine Factory Co Ltd
SSE:600809
|
167B CNY | 9.9 | 14.2 | |
| CN |
|
Luzhou Laojiao Co Ltd
SZSE:000568
|
147.5B CNY | 7.3 | 11.9 | |
| FR |
|
Pernod Ricard SA
PAR:RI
|
16.6B EUR | 8.8 | 11.7 | |
| US |
|
Brown-Forman Corp
NYSE:BF.B
|
13B USD | 11.8 | 10.2 | |
| CN |
|
Jiangsu Yanghe Brewery Joint-Stock Co Ltd
SZSE:002304
|
74.4B CNY | 17.4 | 36.5 | |
| IN |
|
United Spirits Ltd
NSE:MCDOWELL-N
|
1T INR | 49.7 | 71.9 |
Market Distribution
| Min | 0 |
| 30th Percentile | 0 |
| Median | 0 |
| 70th Percentile | 0 |
| Max | 743.2 |
Other Multiples
Diageo PLC
Glance View
Diageo PLC stands as a titan in the global beverage alcohol industry, tracing its lineage back to a series of historic mergers that fused the worlds of Guinness and distillery heavyweights. Headquartered in London, this British multinational has deftly expanded its portfolio to encompass a wide array of spirits, beer, and wine, securing ownership of some of the most recognizable brands worldwide, such as Johnnie Walker, Smirnoff, and Guinness. The company's story is one of strategic acquisitions and brand growth, carefully cultivating a diverse array of high-quality offerings that cater to varied consumer tastes and preferences across the globe. The core of Diageo's business model turns on its ability to transform agricultural raw materials into premium finished products that are marketed and distributed through an extensive network. This structure, paired with a keen understanding of regional market dynamics, enables Diageo to tap into different price points and consumer trends, thus ensuring a steady flow of revenue. By investing heavily in brand strength and consumer engagement, Diageo not only maintains but enhances its market position, deftly navigating the complexities of the global marketplace while continuously innovating within its product lines to sustain interest and relevance among a dynamic audience.