# Diageo plc (DEO) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Consumer Defensive / Beverages. Price $89.19, market value $49.6 billion.

## Valuation
- **P/E (trailing): 28.7×** (5-yr avg 70.0×, 3-yr avg 61.8×). Diageo plc trades at 28.7× trailing earnings, well below its own five-year average of 70.0×: cheap by its own standards. The Consumer Defensive median in the September 2026 study was 20.1×. Forward P/E is 12.9×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.07**. A PEG of 0.07 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 2.5×**. Each dollar of revenue is priced at 2.5×.
- **Price / book: 82.2×**. The shares trade at 82.2× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 11.4×**. Enterprise value is 11.4× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 6.4%** (5-yr avg 7.1%). Free cash flow equals 6.4% of the market value, in line with its five-year average of 7.1%. Above 5% is generally attractive.
- **Earnings yield: 3.5%**. The inverse of the P/E: 3.5% of the price is earned each year.

## Profitability
- **Gross margin: 59.5%**. Diageo plc keeps 59.5% of revenue after the direct cost of what it sells.
- **Operating margin: 16.1%**. 16.1% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 8.8%**. 8.8% of each dollar of sales reaches the bottom line.
- **Return on equity: 16.0%**. 16.0% on shareholders' equity is solid.
- **Return on invested capital: 7.7%**. Return on all capital, debt included, is 7.7%.
- **Return on assets: 3.7%**. Each dollar of assets produces 3.7% of profit.

## Growth
- **Revenue growth (1 yr): -29.8%** (3-yr -11.4%/yr). Revenue fell 29.8% over the last year.
- **EPS growth (1 yr): 194.0%** (3-yr 16.7%/yr). Earnings per share rose 194.0%, faster than revenue, so margins expanded or the share count shrank.

## Financial health
- **Debt to equity: 2.04**. Debt is 2.04 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 3.3×**. It would take 3.3 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Interest coverage: 2.9×**. Operating profit covers interest 2.9×, thin but manageable.
- **Current ratio: 1.60** (quick 0.62). Current assets cover the next year's liabilities 1.60 times.
- **Altman Z-score: 2.01**. A Z-score of 2.01 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.24%** ($0.50 per share, trailing). Diageo plc yields 2.24%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 106%** (58% of free cash flow). The dividend exceeds earnings (106% payout), though free cash flow still covers it.
- **Consecutive years of increases: 3**. 3 straight years of increases.
- **Dividend growth (5 yr): 2.6%/yr** (1-yr 0.0%). The dividend has grown 2.6% a year over five years.
- **Shareholder yield: 2.2%**. Dividends plus net buybacks return 2.2% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (7 analysts). 7 analysts cover Diageo plc; the consensus is buy, with an average price target of $106.29 (+19% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -15.8%** (YTD 4.4%, 3-mo 10.9%). The shares are down 15.8% over twelve months including dividends.
- **From 52-week high: -16.1%** (23.1% above the low). Trading 16% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 44**. An RSI of 44 is neutral.
- **Beta (1 yr): 0.28** (volatility 33%). Beta of 0.28 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=DEO · Page: https://foliofundamentals.com/stocks/deo

Not investment advice.