Stock AnalizDiageo PLC DEO
Beverages (Production/Distribution) · data as of November 13, 2026
Diageo PLC (DEO) is a consumer staples company listed in the US with a market value of about $56.6B. In fiscal year 2026 it had revenue of $19.6B and net income of $1.7B, a net margin of 8.8%.
Its overall Stock Analiz score is 1.4 out of 5 (weak). The strongest part is shareholder returns (3/5); the weakest is future growth (0/5).
Key numbers: a P/E of 32.6, a price to free cash flow of 17.7, 5-year revenue growth of 5% a year, a 5-year average ROIC of 13%. A discounted cash flow model with moderate assumptions puts its intrinsic value about 49% below the current price.
Score: 1.4 / 5
Checks passed
- P/FCF below 20
- 5-year average ROIC above 12%
- Profitable 5 years in a row
- Positive free cash flow
- Pays a dividend
- 20% to 100% of free cash flow returned to shareholders
- Dividend 3 years in a row
Checks not passed
- P/E below 25
- P/E below the industry median
- Price below intrinsic value (DCF, moderate assumptions)
- PEG below 1.5
- Revenue growth above 10% last year
- 3-year revenue growth above 10% a year
- Profit margin improving
- 3-year free cash flow growth above 10% a year
Valuation
Growth and quality
Financials, last 9 years
| Fiscal year | 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Revenue | $19.6B | $28.0B | $27.9B | $28.3B | $29.8B | $26.5B | $21.7B | $24.5B | $24.3B |
| Net income | $1.7B | $2.5B | $4.2B | $4.5B | $4.4B | $3.7B | $1.7B | $4.0B | $4.0B |
| Free cash flow | $3.2B | — | — | — | — | — | — | — | — |
| EPS (diluted) | $3.11 | $4.56 | $7.48 | $8.05 | $7.92 | $6.62 | $3.11 | $7.21 | $7.14 |
| Net margin | 8.8% | 9.1% | 14.9% | 15.8% | 14.8% | 13.9% | 8.0% | 16.4% | 16.4% |
| ROIC | — | 8.9% | 14.5% | 14.4% | 15.5% | — | — | — | — |
From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.
What analysts expect
The average 12-month price target from 6 analysts is $109.17, 7% above the current price; targets range from $83.00 to $133.00; the consensus rating is “Buy”; expected EPS is $6.69 for the fiscal year ending June 30, 2027.
Frequently asked questions
What is Diageo’s P/E ratio?
About 32.6, based on the last twelve months of diluted earnings per share (forward P/E about 14.9).
Is Diageo stock undervalued?
Our DCF model with moderate assumptions puts its intrinsic value about 49% below the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.
Does Diageo pay a dividend?
Yes. The dividend yield is about 1.99%, and it has paid dividends for 4 years in our data.
Is Diageo a good stock to buy?
We do not give buy or sell advice. Diageo scores 1.4 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.
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Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.