Stock Analysis
Diageo plcDEO
P/E 30.44×· 5Y range 14.32–74.49×· top 16% of history
Sector: Consumer Defensive
AnalystsBuy32 analystsP/E 30.4× sits at the 84th percentile of its 5.0978781656399725-year history.
Cash covers 8% of debt · H2 2026.
PMP Verdict
Mixed fundamentals, expensive valuation
Strengths
- Financial Health66
- Profitability65
Risks
- Valuation55
- Growth25
Mixed fundamentals at a demanding price.
Bull Case
- ✓Altman Z 5.1 — safe-zone balance sheet
- ✓ROE 33.2% — efficient capital deployment
What's happening with DEO
Profile
moat, growth and earnings quality lag behind.
How is each axis scored?
- Valuation55/100 · Moderate
- P/E vs own history (84th pct)0/25
- FCF yield (6.0%)20/25
- P/S (1.7x)25/25
- EV/EBIT (n/a)10/25
- Growth25/100 · Weak
- Revenue CAGR (n/a)0/25
- Net income CAGR (n/a)0/25
- EPS CAGR 5Y (n/a)0/25
- Fwd implied growth (138.6%)25/25
- Profitability65/100 · Moderate
- ROIC (n/a)0/25
- ROE (33.2%)25/25
- Net margin (12.4%)20/25
- Operating margin (20.9%)20/25
- Financial Health66/100 · Moderate
- Altman Z (5.05)25/25
- Current ratio (1.60)18/25
- Interest coverage (5.3x)18/25
- Net cash / debt (D/A 44%)5/25
- Quality25/100 · Weak
- Piotroski F (0/9)0/25
- Beneish M (n/a)0/25
- FCF conversion (n/a)0/25
- Margin stability (σ 1.1%)25/25
- Moat0/100 · Weak
- ROIC >12% years (n/a)0/25
- Median gross margin (n/a)0/25
- FCF-positive years (n/a)0/25
- Worst-year net margin (n/a)0/25
Risk Flags
- ⚠P/E 30.4× at top 16% of 5-year history
About Diageo plc
Formed in 1997 through the merger of Grand Metropolitan and Guinness, Diageo is the largest distiller globally by sales. Show more
Diageo acquired some of the Seagram assets in 2001, which gave it brands such as Captain Morgan rum and Crown Royal Canadian whisky. Since then, mergers and acquisitions have mostly been bolt-on in nature, plugging gaps in the company's product and geographic portfolio.
Employees: 29,860 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
Valuation
55CP/E (TTM)30.4xC
Grade C: ExpensivePrice / TTM EPS (own statements) — vs own 5Y history: 14.3x–74.5x · 84th pct
P/FCF17.7xB
Grade B: FairPrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield6.0%A
Grade A: ValueLatest stored TTM FCF / Market Cap — vs own 5Y history: 2.1%–7.9% · 82nd pct
P/S (TTM)1.70xA
Grade A: CheapPrice / TTM Revenue (own statements) — vs own 5Y history: 2.0x–6.6x · 20th pct
EV/EBITDA8.1xA
Grade A: CheapEnterprise value / EBITDA (Finnhub) — capital-structure neutral — vs own 5Y history: 10.9x–25.4x · 17th pct
EV/Sales2.4xB
Grade B: FairEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E12.8xA
Grade A: CheapPrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio4.08xC
Grade C: ExpensivePrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio—
Finnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield3.60%A
Grade A: PaysTTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio49.5%A
Grade A: SafeDividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
65BROIC—
NOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE33.2%A
Grade A: StrongReturn on Equity. Neg. equity = heavy buybacks
ROA7.7%C
Grade C: AverageReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin12.4%A
Grade A: HighNet Income / Revenue
Operating Margin—
TTM EBIT / TTM Revenue
Gross Margin60.0%A
Grade A: PremiumGross Profit / Revenue
FCF Margin—
FCF / Revenue
True FCF Margin—
TTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
25ERevenue CAGR—
Compound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR—
Compound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)—
Compound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth138.6%A
Grade A: HighAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)—
Share count change over 5Y
SBC / Net Income—
Stock-based comp/Net income. >30% = dilution risk
SBC / Revenue—
TTM stock-based comp / TTM Revenue
Financial Health
66BAltman Z-Score5.05A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio1.60xC
Grade C: OkCurrent Assets/Liabilities
Quick Ratio0.62xC
Grade C: Ok(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage5.3xC
Grade C: OkEBIT/Interest. >10 Strong
Debt Repayment—
Years to repay net debt via FCF
Net Debt/EBIT—
Leverage. <2x Low, >4x High
Debt/Equity1.71xC
Grade C: MedDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt0.08xD
Grade D: ThinCash covers how much of total debt. >1 = could repay all debt from cash
Quality
25EPiotroski F-Score0/9D
Grade D: WeakFinancial strength 0–9. >7 Strong
Beneish M-Score—
Earnings manipulation risk. < -2.22 Safe
FCF Conversion—
FCF / Net Income
Margin Stability1.1%A
Grade A: StableEBIT margin std deviation. Lower = stable
Capex / Revenue—
TTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.62xC
Grade C: AverageRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
0EROIC >12% Years—
Share of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)—
Median annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years—
Share of completed fiscal years with positive free cash flow
Net Margin Floor—
Weakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$3.12
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$0.91
Cash & short-term investments per share (Finnhub)
Book Value / Share$4.88
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$22.20B
Total debt obligations (short + long term)
Cash & Equiv.$1.78B
Cash and short-term investments
Net Debt$20.41B
Total Debt minus Cash. Negative = Net Cash position
Total Equity$12.95B
Shareholders' equity (book value)
Asset / Liability1.38xC
Grade C: AdequateTotal Assets / Total Liabilities
Market
Market Cap$52.89B
Current Market Capitalization
Beta0.83B
Grade B: MarketPrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jun 2026 · Ratio snapshot Oct 17, 2026
Key Insights: Diageo plc (DEO)
DEO is up 1.22% at the last close. Diageo plc meets only 0 of 9 Piotroski F-Score criteria — a sign of weak underlying fundamentals. Altman Z-Score of 5.05 sits comfortably in the safe zone (≥ 2.99), indicating low bankruptcy risk.
- Return on equity of 33.2% is well above the market average.
- The stock currently yields 3.6% in dividends.
See how DEO ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all DEO moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 13 | Pre-market | 91.21 | +2.79% | 2.21 |
| Oct 12 | After-hours | 88.73 | +2.31% | 2.07 |
| Oct 8 | Regular | 87.05 | +2.73% | 2.58 |
| Oct 8 | After-hours | 86.98 | +2.66% | 2.52 |
Frequently Asked Questions about DEO
What is the current Diageo plc (DEO) stock price?
DEO is trading at $95.11 at the last market close, up 1.22% on the session. PreMarketPrice tracks DEO pre-market, intraday and after-hours prices.
Is DEO stock a buy right now?
PreMarketPrice's quantitative model rates Diageo plc's financial health at 66/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is DEO stock overvalued?
Diageo plc trades at a trailing P/E of 30.4 and our valuation score rates it 55/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Diageo plc report earnings?
No confirmed earnings date is currently scheduled for DEO. The Earnings section lists recent reports and updates as dates are announced.
What sector does Diageo plc operate in?
Diageo plc operates in the Consumer Defensive sector. The Related Stocks section lists sector peers for comparison.
What does Diageo plc do?
Formed in 1997 through the merger of Grand Metropolitan and Guinness, Diageo is the largest distiller globally by sales.
About Diageo plc (DEO) Stock
Diageo plc (DEO) is a US-listed stock operating in the Consumer Defensive sector. As of the latest update, Diageo plc is trading at $95.11, up 1.22% on the day with a market capitalization of $52.9 billion. The financial health score for DEO is 66/100, which indicates good financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for DEO stock.
DEO Stock Analysis & Key Metrics
On PreMarketPrice, you can track Diageo plc (DEO) across multiple dimensions:
- Pre-market price & movement: Real-time DEO stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for DEO with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Diageo plc across multiple reporting periods.
- Financial health score: A composite score of 66/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for DEO.
- Sector peers: Compare DEO against 4 other consumer defensive stocks on key financial metrics.
Is DEO a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Diageo plc (DEO) as an investment. The financial health score of 66/100 suggests good financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Diageo plc (DEO) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.