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Diageo PLC
NYSE:DEO

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Diageo PLC
NYSE:DEO
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Price: 77.4 USD -1.96% Market Closed
Market Cap: $43B

P/E

13.2
Current
16%
Cheaper
vs 3-y average of 15.8

Price to Earnings (P/E) ratio shows how much investors pay for each dollar of a company`s earnings. It`s calculated by dividing the company`s market value by its total earnings.

P/E
13.2
=
Market Cap
$36.8B
/
Net Income
£2.4B

Price to Earnings (P/E) ratio shows how much investors pay for each dollar of a company`s earnings. It`s calculated by dividing the company`s market value by its total earnings.

P/E
13.2
=
Market Cap
$36.8B
/
Net Income
£2.4B

Valuation Scenarios

Diageo PLC is trading below its 3-year average

If P/E returns to its 3-Year Average (15.8), the stock would be worth $92.34 (19% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-98%
Maximum Upside
+34%
Average Downside
36%
Scenario P/E Value Implied Price Upside/Downside
Current Multiple 13.2 $77.4
0%
3-Year Average 15.8 $92.34
+19%
5-Year Average 17.8 $104.1
+34%
Industry Average 0.2 $1.22
-98%
Country Average 0.2 $1.22
-98%

Forward P/E
Today’s price vs future net income

Today's Market Cap Net Income Forward P/E
$36.8B
/
Jan 2026
£2.4B
=
13.2
Current
$36.8B
/
Jun 2026
£3.7B
=
10
Forward
$36.8B
/
Jun 2027
£3.7B
=
9.9
Forward
$36.8B
/
Jun 2028
£4B
=
9.3
Forward
$36.8B
/
Jun 2029
£4.4B
=
8.3
Forward
$36.8B
/
Jun 2030
£4.9B
=
7.6
Forward

Forward P/E shows whether today’s P/E still looks high or low once future net income are taken into account.

Market Distribution

Higher than 86% of companies in United Kingdom
Percentile
86th
Based on 2 117 companies
86th percentile
0.7
Low
0 — 0.1
Typical Range
0.1 — 0.3
High
0.3 —
Distribution Statistics
United Kingdom
Min 0
30th Percentile 0.1
Median 0.2
70th Percentile 0.3
Max 828.3

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 48%
Intrinsic Value
Price $77.4
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