Valuation dashboard for Diageo plc (DEO) with P/E 31.40, P/B 4.98, EV/EBITDA 11.9 and dividend yield 2.05%. DCF, Graham Number, EPS growth, peer multiples and dividend discount models plus sector comparison against other Consumer Defensive companies.
Diageo plc, operating through its various subsidiaries, stands as a major global player in the production, marketing, and distribution of alcoholic beverages. The company boasts an extensive product range, featuring a wide selection of spirits such as Scotch, diverse whiskies (including Canadian and American varieties), gin, vodka, rum, tequila, cachaça, brandy, raki, and liqueurs.
Where would it trade at its usual multiples?
Versus its usual multiples: expensive · Current P/E 31.4× · Multiples range: $49.91 · $68.27.
At the decade median (16.0×) $50 (-49%); at its sector median (21.9×) $68 (-30%). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.
Analysis Summary
Diageo plc reported revenue of $19.60B in the most recent fiscal year, growing at a 5-year CAGR of 9.0%. Net income reached $1.73B, with a -8.2% 5-year CAGR.
Trailing-twelve-month margins: gross margin 59.5%, operating margin 28.4%, net margin 8.9%.
At $97.70 (closing price, November 4, 2026), DEO trades at a P/E of 31.40 and an ROE of 15.52%. Market capitalisation stands at $54.3B, placing it among large-cap names.
Balance sheet quality for DEO: debt-to-equity ratio of 2.03, current ratio of 1.60 over the last 12 months. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Valuation Ratios
| P/E Ratio | 31.40 |
| Price / Book | 4.98 |
| EV / EBITDA | 11.9 |
| Dividend Yield | 2.05% |
Peer Comparison
| Symbol | Company | Market Cap | P/E | P/B | ROE |
|---|---|---|---|---|---|
| DEO | Diageo plc | $54.3B | 31.40 | 4.98 | 15.5% |
| BUD | Anheuser-Busch InBev SA/NV | $164.8B | 13.58 | 1.79 | 13.3% |
| ABEV | Ambev S.A. | $42.6B | 14.95 | 2.59 | 17.6% |
| STZ | Constellation Brands, Inc. | $24.6B | 13.05 | 2.89 | 23.6% |
| BF-B | Brown-Forman Corporation | $14.2B | 20.05 | 3.35 | 17.8% |
Price
| Price | $97.70 (closing price, November 4, 2026) |
| Market Cap | $54.3B |
| Exchange | NYSE |
| Country | GB |
Profitability
| Return on Equity | 15.52% |
| Return on Invested Capital | 10.93% |
| Return on Assets | 3.71% |
| Gross Margin | 59.48% |
| Operating Margin | 28.38% |
| Net Margin | 8.91% |
Related companies: BUD · ABEV · STZ · BF-B
Explore sector: Consumer Defensive · Beverages - Alcoholic
More sections of DEO: Overview · Financials · Estimates · Technical · Ownership
Discover more: Weekly Radar: the S&P 500 through the Buffett and Lynch methods · Companies that pass the Buffett method · Companies that pass the Lynch method · Stocks that pass Graham's defensive investor test today · Investment Academy — learn to analyze stocks