Diageo PLC Valuation
| DEO Stock | USD 109.90 0.37 0.34% |
At this time, the firm appears to be fairly valued. Diageo PLC ADR shows a prevailing Real Value of $112.02 per share. The current price of the firm is $109.9. Our model computes the value of Diageo PLC ADR from reviewing the firm fundamentals such as Operating Margin of 0.29 %, current valuation of 81.28 B, and Profit Margin of 0.18 % as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Diageo PLC's valuation include:
Price Book 5.9568 | Enterprise Value | Enterprise Value Ebitda 12.0452 | Price Sales 3.0511 | Forward PE 14.8148 |
Fairly Valued
Today
Please note that Diageo PLC's price fluctuation is very steady at this time. Calculation of the real value of Diageo PLC ADR is based on 3 months time horizon. Increasing Diageo PLC's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Diageo PLC is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Diageo Stock. However, Diageo PLC's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 109.9 | Real 112.02 | Target 134.86 | Hype 110.06 | Naive 109.23 |
The intrinsic value of Diageo PLC's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Diageo PLC's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Diageo PLC ADR helps investors to forecast how Diageo stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Diageo PLC more accurately as focusing exclusively on Diageo PLC's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Diageo PLC's intrinsic value based on its ongoing forecasts of Diageo PLC's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Diageo PLC's closest peers.
Diageo PLC Cash |
|
Diageo Valuation Trend
Knowing Diageo PLC's actual value is paramount for traders when making sound investment determinations. Using both Diageo PLC's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Diageo Revenue by Product
Diageo PLC Total Value Analysis
Diageo PLC ADR is currently forecasted to have company total value of 81.28 B with market capitalization of 61.66 B, debt of 18.62 B, and cash on hands of 1.44 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Diageo PLC fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
81.28 B | 61.66 B | 18.62 B | 1.44 B |
Diageo PLC Investor Information
The company has Price/Earnings To Growth (PEG) ratio of 1.99. Diageo PLC ADR recorded earning per share (EPS) of 6.45. The entity last dividend was issued on the 28th of February 2025. The firm had 2:1 split on the 28th of October 1991. Based on the measurements of operating efficiency obtained from Diageo PLC's historical financial statements, Diageo PLC ADR may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Operating Profit Margin | 0.19 | 0.1462 |
|
| |||||
| Total Cash From Operating Activities | 2.3 B | 3.8 B |
|
| |||||
| Operating Income | 7.2 B | 6.9 B |
|
|
Diageo PLC Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Diageo PLC has an asset utilization ratio of 35.41 percent. This suggests that the Company is making $0.35 for each dollar of assets. An increasing asset utilization means that Diageo PLC ADR is more efficient with each dollar of assets it utilizes for everyday operations.Diageo PLC Ownership Allocation
Diageo PLC holds a total of 555.54 Million outstanding shares. Roughly 89.26 percent of Diageo PLC outstanding shares are held by general public with 0.24 (percent) owned by insiders and only 10.5 % by other corporate entities. Please note that on February 14, 2025, Senator Tommy Tuberville of US Senate acquired $15k to $50k worth of Diageo PLC ADR's common stock.Diageo PLC Profitability Analysis
The company reported the last year's revenue of 16.1 B. Total Income to common stockholders was 3.07 B with profit before taxes, overhead, and interest of 12.24 B.Diageo PLC Past Distributions to stockholders
About Diageo PLC Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Diageo PLC ADR. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Diageo PLC ADR based exclusively on its fundamental and basic technical indicators. By analyzing Diageo PLC's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Diageo PLC's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Diageo PLC. We calculate exposure to Diageo PLC's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Diageo PLC's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 11.2 B | 7.3 B | |
| Pretax Profit Margin | 0.10 | 0.18 | |
| Operating Profit Margin | 0.15 | 0.19 | |
| Net Profit Margin | 0.05 | 0.05 | |
| Gross Profit Margin | 0.54 | 0.46 |
A single share of Diageo PLC represents a small ownership stake in the entity. As a stockholder of Diageo, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Diageo PLC Dividends Analysis For Valuation
As of the 25th of February 2025, Dividend Payout Ratio is likely to grow to 0.95, though Dividends Paid is likely to grow to (1.9 B). . At this time, Diageo PLC's Retained Earnings are very stable compared to the past year. As of the 25th of February 2025, Earnings Yield is likely to grow to 0.04, while Price Earnings Ratio is likely to drop 30.01.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -2 B | -1.9 B | |
| Dividend Yield | 0.04 | 0.03 | |
| Dividend Payout Ratio | 0.53 | 0.95 | |
| Dividend Paid And Capex Coverage Ratio | 1.52 | 1.04 |
There are various types of dividends Diageo PLC can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Diageo shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Diageo PLC ADR directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Diageo pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Diageo PLC by the value of the dividends paid out.
Diageo PLC Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 2.2 B | |
| Quarterly Earnings Growth Y O Y | -0.117 | |
| Forward Price Earnings | 14.8148 |
Diageo PLC Current Valuation Indicators
Diageo PLC's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Diageo PLC's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Diageo PLC, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Diageo PLC's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Diageo PLC's worth.When determining whether Diageo PLC ADR offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Diageo PLC's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Diageo Plc Adr Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Diageo Plc Adr Stock: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Diageo PLC ADR. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income. You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Is Distillers & Vintners space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Diageo PLC. If investors know Diageo will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Diageo PLC listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.12) | Dividend Share 1.035 | Earnings Share 6.45 | Revenue Per Share | Quarterly Revenue Growth (0.01) |
The market value of Diageo PLC ADR is measured differently than its book value, which is the value of Diageo that is recorded on the company's balance sheet. Investors also form their own opinion of Diageo PLC's value that differs from its market value or its book value, called intrinsic value, which is Diageo PLC's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Diageo PLC's market value can be influenced by many factors that don't directly affect Diageo PLC's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Diageo PLC's value and its price as these two are different measures arrived at by different means. Investors typically determine if Diageo PLC is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Diageo PLC's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.