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Diageo PLC
NYSE:DEO

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Diageo PLC
NYSE:DEO
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Price: 79 USD -0.37% Market Closed
Market Cap: $43.9B

P/OCF

8.5
Current
37%
Cheaper
vs 3-y average of 13.5

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
8.5
=
Market Cap
$36.8B
/
Operating Cash Flow
£3.8B

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
8.5
=
Market Cap
$36.8B
/
Operating Cash Flow
£3.8B

Valuation Scenarios

Diageo PLC is trading below its 3-year average

If P/OCF returns to its 3-Year Average (13.5), the stock would be worth $124.67 (58% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-99%
Maximum Upside
+91%
Average Downside
12%
Scenario P/OCF Value Implied Price Upside/Downside
Current Multiple 8.5 $79
0%
3-Year Average 13.5 $124.67
+58%
5-Year Average 16.3 $150.89
+91%
Industry Average 0.1 $1.33
-98%
Country Average 0.1 $1.02
-99%

Forward P/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward P/OCF

Peer Comparison

All Multiples
P/OCF
P/E
All Countries
Close

Market Distribution

Higher than 85% of companies in United Kingdom
Percentile
85th
Based on 2 384 companies
85th percentile
0.5
Low
0 — 0.1
Typical Range
0.1 — 0.2
High
0.2 —
Distribution Statistics
United Kingdom
Min 0
30th Percentile 0.1
Median 0.1
70th Percentile 0.2
Max 2 143.8

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
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