Diageo plc

OTCPK:DGEA.F Stock Report

Market Cap: US$66.1b

Diageo Valuation

Is DGEA.F undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of DGEA.F when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DGEA.F ($29.63) is trading below our estimate of fair value ($45.78)

Significantly Below Fair Value: DGEA.F is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DGEA.F?

Key metric: As DGEA.F is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for DGEA.F. This is calculated by dividing DGEA.F's market cap by their current earnings.
What is DGEA.F's PE Ratio?
PE Ratio17.1x
EarningsUS$3.87b
Market CapUS$66.13b

Price to Earnings Ratio vs Peers

How does DGEA.F's PE Ratio compare to its peers?

The above table shows the PE ratio for DGEA.F vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average38.8x
STZ Constellation Brands
74.6x31.8%US$43.1b
BF.B Brown-Forman
19.3x3.7%US$19.1b
NAPA Duckhorn Portfolio
29x28.1%US$1.6b
MNST Monster Beverage
32.3x11.6%US$50.6b
DGEA.F Diageo
17.1x3.9%US$52.5b

Price-To-Earnings vs Peers: DGEA.F is good value based on its Price-To-Earnings Ratio (17.1x) compared to the peer average (38.8x).

Price to Earnings Ratio vs Industry

How does DGEA.F's PE Ratio compare vs other companies in the North American Beverage Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
DGEA.F 17.1xIndustry Avg. 18.2xNo. of Companies3PE01632486480+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DGEA.F is good value based on its Price-To-Earnings Ratio (17.1x) compared to the Global Beverage industry average (18.2x).

Price to Earnings Ratio vs Fair Ratio

What is DGEA.F's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DGEA.F PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.1x
Fair PE Ratio23.9x

Price-To-Earnings vs Fair Ratio: DGEA.F is good value based on its Price-To-Earnings Ratio (17.1x) compared to the estimated Fair Price-To-Earnings Ratio (23.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst DGEA.F forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$29.63
US$34.29
+15.7%
12.5%US$42.73US$26.30n/a22
Nov ’25US$30.40
US$34.70
+14.2%
13.0%US$42.73US$26.30n/a22
Oct ’25US$35.34
US$34.76
-1.7%
12.9%US$42.73US$26.30n/a22
Sep ’25US$32.19
US$34.47
+7.1%
14.1%US$44.26US$25.66n/a22
Aug ’25US$30.98
US$35.17
+13.6%
15.1%US$44.26US$25.66n/a22
Jul ’25US$31.60
US$37.44
+18.5%
11.6%US$44.53US$29.27n/a22
Jun ’25US$33.47
US$38.11
+13.9%
12.4%US$45.46US$29.60n/a22
May ’25US$33.90
US$38.05
+12.2%
12.4%US$45.46US$29.60n/a22
Apr ’25US$36.95
US$38.27
+3.6%
11.8%US$45.14US$30.32n/a22
Mar ’25US$37.76
US$38.90
+3.0%
13.1%US$51.82US$30.32n/a24
Feb ’25US$37.11
US$38.87
+4.7%
13.0%US$51.82US$30.14n/a24
Jan ’25US$35.57
US$40.52
+13.9%
13.6%US$51.82US$31.18n/a25
Dec ’24US$34.62
US$41.23
+19.1%
12.9%US$51.82US$31.12n/a25
Nov ’24US$37.72
US$45.09
+19.5%
12.1%US$56.40US$35.84US$30.4025
Oct ’24US$36.65
US$45.80
+25.0%
11.7%US$56.40US$36.95US$35.3424
Sep ’24US$41.69
US$47.31
+13.5%
10.0%US$56.40US$37.21US$32.1924
Aug ’24US$42.80
US$47.78
+11.6%
11.3%US$60.23US$37.21US$30.9823
Jul ’24US$42.86
US$47.85
+11.6%
11.7%US$60.23US$33.17US$31.6023
Jun ’24US$42.40
US$49.40
+16.5%
12.5%US$60.80US$33.17US$33.4723
May ’24US$45.70
US$49.30
+7.9%
12.4%US$60.80US$32.40US$33.9023
Apr ’24US$45.15
US$49.38
+9.4%
12.8%US$63.15US$32.40US$36.9523
Mar ’24US$42.64
US$49.36
+15.8%
12.8%US$63.15US$32.76US$37.7625
Feb ’24US$43.80
US$49.74
+13.6%
13.2%US$63.15US$32.76US$37.1125
Jan ’24US$43.55
US$50.99
+17.1%
13.0%US$62.07US$34.54US$35.5725
Dec ’23US$45.44
US$49.70
+9.4%
12.9%US$59.92US$34.54US$34.6225
Nov ’23US$41.29
US$48.81
+18.2%
12.9%US$59.92US$34.54US$37.7225

Analyst Forecast: Target price is less than 20% higher than the current share price.

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