Diageo plc (DEO) Valuation
Historical valuation analysis based on 1281 data points (2021-09-10 to 2026-10-16)
Formed in 1997 through the merger of Grand Metropolitan and Guinness, Diageo is the largest distiller globally by sales. Diageo acquired some of the Seagram assets in 2001, which gave it brands suc...
Diageo plc (DEO) currently trades at a P/E ratio of 30.44 (historical range: 14.32–74.49, median: 21.88), placing it at the 84th percentile — expensive relative to its history, P/S ratio of 2.69 (range: 1.99–6.59, 20th percentile — below its historical average), EV/EBITDA of 12.73 (range: 10.89–25.41, 17th percentile).
Over the historical period (2021-09-10 to 2026-10-16), Diageo plc's P/E ratio has contracted by 43% over the observed period (from an average of 35.5 to 20.3).
Diageo plc trades below its historical valuation range, with most metrics below their median levels.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 30.44 | 21.88 | 84th | expensive relative to its history |
| P/S Ratio | 2.69 | 3.84 | 20th | below its historical average |
| EV/EBITDA | 12.73 | 15.95 | 17th | cheap relative to its history |
| FCF Yield | 6.04% | 3.29% | 82th | cheap relative to its history |
Diageo plc (DEO) Valuation & P/E History
Diageo plc (DEO) is a US-listed stock operating in the Consumer Defensive sector currently trading at $95.11 with a market capitalization of $52.9 billion. This page provides historical valuation analysis for DEO based on 1281 data points covering 2021-09-10 to 2026-10-16. The P/E ratio of 30.44 is above the historical median of 21.88, placing DEO at the 84th percentile of its valuation range. The P/S ratio of 2.69 compares to a median of 3.84.
DEO Valuation Metrics & Historical Range
The valuation table above shows Diageo plc's current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether DEO is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests DEO is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for Diageo plc.
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is DEO Overvalued or Undervalued?
Diageo plc trades below its historical valuation range, with most metrics below their median levels. The overall valuation percentile of 40 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive DEO is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full DEO analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.DEO trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.