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Diageo PLC
NYSE:DEO

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Diageo PLC
NYSE:DEO
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Price: 79.37 USD -0.73% Market Closed
Market Cap: $44.1B

EV/EBITDA

8.3
Current
24%
Cheaper
vs 3-y average of 11

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.

EV/EBITDA
8.3
=
Enterprise Value
$54.4B
/
EBITDA
£6B

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.

EV/EBITDA
8.3
=
Enterprise Value
$54.4B
/
EBITDA
£6B

Valuation Scenarios

Diageo PLC is trading below its 3-year average

If EV/EBITDA returns to its 3-Year Average (11), the stock would be worth $104.79 (32% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-100%
Maximum Upside
+46%
Average Downside
30%
Scenario EV/EBITDA Value Implied Price Upside/Downside
Current Multiple 8.3 $79.37
0%
3-Year Average 11 $104.79
+32%
5-Year Average 12.2 $115.7
+46%
Industry Average 0 $0.29
-100%
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
/
Jan 2026
£6B
=
8.3
Current
$54.4B
/
Jun 2026
£6.7B
=
8.1
Forward
$54.4B
/
Jun 2027
£6.7B
=
8.1
Forward
$54.4B
/
Jun 2028
£7B
=
7.8
Forward

Forward EV/EBITDA shows whether today’s EV/EBITDA still looks high or low once future ebitda are taken into account.

Peer Comparison

All Multiples
EV/EBITDA
P/E
All Countries
Close

Market Distribution

Higher than 95% of companies in United Kingdom
Percentile
95th
Based on 1 967 companies
95th percentile
11.4
Low
0 — 0
Typical Range
0 — 0
High
0 —
Distribution Statistics
United Kingdom
Min 0
30th Percentile 0
Median 0
70th Percentile 0
Max 743.2

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.

DEO Intrinsic Value
149.14 USD
Undervaluation 47%
Intrinsic Value
Price $79.37
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