Update shared on18 Sep 2025
Fair value Decreased 1.23%Diageo's consensus price target has held steady despite a significant contraction in its future P/E multiple and a slight decrease in revenue growth forecasts, resulting in only a marginal reduction in fair value from £23.54 to £23.25.
What's in the News
- Johnnie Walker unveiled a limited edition Blue Label design for the Indian festive season, collaborating with designer Rahul Mishra, available globally and featured in international festive celebrations.
- Diageo will cease operations at its Amherstburg, Ontario bottling facility by February 2026, reallocating Crown Royal bottling to optimize supply chain efficiency and align with its Accelerate program's cost and productivity goals.
- Diageo provided FY26 guidance with organic net sales growth expected to match FY25, skewed to the second half, with organic operating profit growth in the mid-single-digit range, supported by cost savings and tariff impacts.
- Deirdre Mahlan was appointed Interim CFO, bringing extensive prior Diageo leadership experience, effective August.
- CEO Debra Crew stepped down by mutual agreement; CFO Nik Jhangiani named Interim CEO as the board conducts a full internal and external search.
Valuation Changes
Summary of Valuation Changes for Diageo
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from £23.54 to £23.25.
- The Future P/E for Diageo has significantly fallen from 20.02x to 14.69x.
- The Consensus Revenue Growth forecasts for Diageo has fallen from 2.7% per annum to 2.6% per annum.
Disclaimer
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