# Diageo plc (DGED.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Consumer Defensive / Beverages. Price $88.00, market value $48.9 billion.

## Valuation
- **P/E (trailing): 28.2×** (5-yr avg 20.4×, 3-yr avg 19.9×). Diageo plc trades at 28.2× trailing earnings, well above its own five-year average of 20.4×: investors are paying up relative to the company's past. The Consumer Defensive median in the September 2026 study was 20.1×.
- **Price / sales: 2.5×**. Each dollar of revenue is priced at 2.5×.
- **Price / book: 81.1×**. The shares trade at 81.1× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 11.3×**. Enterprise value is 11.3× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 6.5%** (5-yr avg 3.9%). Free cash flow equals 6.5% of the market value, above its five-year average of 3.9%, so the shares are cheaper on cash than they have usually been. 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): -3.0%** (3-yr -1.5%/yr). Revenue fell 3.0% over the last year.
- **Free-cash-flow growth (3 yr): 12.9%/yr**. Free cash flow has compounded at 12.9% a year over three years.

## 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: 5/9**. 5 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): 3.1%/yr** (1-yr 0.0%). The dividend has grown 3.1% a year over five years.
- **Shareholder yield: 2.2%**. Dividends plus net buybacks return 2.2% of the market value a year.

## Price and momentum
- **Total return (1 yr): -15.6%** (YTD 4.4%, 3-mo 11.5%). The shares are down 15.6% over twelve months including dividends.
- **From 52-week high: -17.6%** (22.7% above the low). Trading 18% 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): 45**. An RSI of 45 is neutral.
- **Beta (1 yr): 0.61** (volatility 33%). Beta of 0.61 against the FTSE All-Share: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=DGED.L · Page: https://foliofundamentals.com/stocks/dged.l

Not investment advice.