Diageo Plc Valuation
| GUI Stock | EUR 30.38 0.42 1.36% |
At this time, the firm appears to be overvalued. Diageo plc shows a prevailing Real Value of €25.36 per share. The current price of the firm is €30.38. Our model computes the value of Diageo plc from reviewing the firm fundamentals such as Profit Margin of 0.21 %, current valuation of 115.92 B, and Operating Margin of 0.31 % as well as analyzing its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that Diageo Plc's price fluctuation is very steady at this time. Calculation of the real value of Diageo plc 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.
The fair value of the Diageo stock is determined by what a typical buyer is willing to pay for full or partial control of Diageo plc. 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 30.38 | Real 25.36 | Hype 30.38 | Naive 30.21 |
The real value of Diageo Stock, also known as its intrinsic value, is the underlying worth of Diageo plc Company, which is reflected in its stock price. It is based on Diageo Plc's financial performance, growth prospects, management team, or industry conditions. 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, or news.
Estimating the potential upside or downside of Diageo plc 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: Diageo Plc Total Value Analysis
Diageo plc is currently estimated to have takeover price of 115.92 B with market capitalization of 90.8 B, debt of 14.5 B, and cash on hands of 2.85 B. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Diageo Plc fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
115.92 B | 90.8 B | 14.5 B | 2.85 B |
Diageo Plc Investor Information
About 59.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 2.22. Diageo plc last dividend was issued on the 2nd of March 2023. Based on the measurements of operating efficiency obtained from Diageo Plc's historical financial statements, Diageo plc is not in a good financial situation at the moment. It has a very high risk of going through financial straits in January.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 42.32 percent. This implies that the Company is making €0.42 for each dollar of assets. An increasing asset utilization means that Diageo plc is more efficient with each dollar of assets it utilizes for everyday operations.Diageo Plc Ownership Allocation
Diageo Plc holds a total of 2.26 Billion outstanding shares. Over half of Diageo Plc's outstanding shares are owned by other corporate entities. These other corporate entities are typically referred to as corporate investors that obtain positions in a given instrument to benefit from reduced trade commissions. Consequently, these institutions are subject to different rules and regulations than regular investors in Diageo Plc. Please watch out for any change in the institutional holdings of Diageo plc as this could mean something significant has changed or is about to change at the company. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Diageo Plc Profitability Analysis
The company reported the revenue of 15.45 B. Net Income was 3.25 B with profit before overhead, payroll, taxes, and interest of 9.48 B.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Diageo Plc's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Diageo Plc and how it compares across the competition.
About Diageo Plc Valuation
The stock valuation mechanism determines Diageo Plc's current worth on a weekly basis. Our 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.Diageo plc, together with its subsidiaries, produces, markets, and sells alcoholic beverages. The company was incorporated in 1886 and is headquartered in London, the United Kingdom. DIAGEO PLC operates under BeveragesWineries Distilleries classification in Germany and is traded on Frankfurt Stock Exchange. It employs 27788 people.
8 Steps to conduct Diageo Plc's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Diageo Plc's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Diageo Plc's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Diageo Plc's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Diageo Plc's revenue streams: Identify Diageo Plc's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Diageo Plc's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Diageo Plc's growth potential: Evaluate Diageo Plc's management, business model, and growth potential.
- Determine Diageo Plc's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Diageo Plc's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Complementary Tools for Diageo Stock analysis
When running Diageo Plc's price analysis, check to measure Diageo Plc's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Diageo Plc is operating at the current time. Most of Diageo Plc's value examination focuses on studying past and present price action to predict the probability of Diageo Plc's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Diageo Plc's price. Additionally, you may evaluate how the addition of Diageo Plc to your portfolios can decrease your overall portfolio volatility.
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