Diageo Plc Valuation
| GUI Stock | EUR 30.32 0.16 0.53% |
At this time, the firm appears to be overvalued. Diageo Plc shows a prevailing Real Value of €25.23 per share. The current price of the firm is €30.32. Our model computes the value of Diageo Plc from reviewing the firm fundamentals such as Price To Sales of 5.71 X, total debt of 14.5 B, and Price To Earnings To Growth of 2.22 X 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 30.32 | Real 25.23 | Hype 30.16 |
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 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 forecasted to have takeover price of 115.92 B with market capitalization of 107.7 B, debt of 14.5 B, and cash on hands of . 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 | 107.7 B | 14.5 B |
Diageo Plc Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The recent return on assets of Diageo suggests not a very effective usage of assets in January.About Diageo Plc Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Diageo Plc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Diageo Plc 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.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.
Other Information on Investing in Diageo Stock
Diageo Plc financial ratios help investors to determine whether Diageo Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Diageo with respect to the benefits of owning Diageo Plc security.