Diageo Plc Stock Current Valuation
| DGE Stock | 2,398 48.50 2.06% |
Valuation analysis of Diageo PLC helps investors to measure Diageo PLC's intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. At present, Diageo PLC's Cash And Short Term Investments are projected to increase significantly based on the last few years of reporting. The current year's Cash And Equivalents is expected to grow to about 1.7 B, whereas Free Cash Flow is forecasted to decline to about 236 M. Fundamental drivers impacting Diageo PLC's valuation include:
Price Book 6.6854 | Enterprise Value 69.7 B | Enterprise Value Ebitda 12.3844 | Price Sales 2.6295 | Forward PE 14.7275 |
Overvalued
Today
Please note that Diageo PLC's price fluctuation is very steady at this time. Calculation of the real value of Diageo PLC is based on 3 months time horizon. Increasing Diageo PLC's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Diageo stock is determined by what a typical buyer is willing to pay for full or partial control of Diageo PLC. Since Diageo PLC is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Diageo Stock. However, Diageo PLC's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 2398.5 | Real 1894.82 | Hype 2398.68 | Naive 2465.35 |
The real value of Diageo Stock, also known as its intrinsic value, is the underlying worth of Diageo PLC Company, which is reflected in its stock price. It is based on Diageo PLC's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Diageo PLC's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of Diageo PLC helps investors to forecast how Diageo stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Diageo PLC more accurately as focusing exclusively on Diageo PLC's fundamentals will not take into account other important factors: Diageo PLC Company Current Valuation Analysis
Diageo PLC's Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Current Diageo PLC Current Valuation | 69.75 B |
Most of Diageo PLC's fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Diageo PLC is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
| Competition |
In accordance with the recently published financial statements, Diageo PLC has a Current Valuation of 69.75 B. This is 259.4% higher than that of the Beverages sector and significantly higher than that of the Consumer Staples industry. The current valuation for all United Kingdom stocks is significantly lower than that of the firm.
Diageo Current Valuation Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Diageo PLC's direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Diageo PLC could also be used in its relative valuation, which is a method of valuing Diageo PLC by comparing valuation metrics of similar companies.Diageo PLC is currently under evaluation in current valuation category among its peers.
Diageo PLC ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Diageo PLC's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Diageo PLC's managers, analysts, and investors.Environment Score | Governance Score | Social Score |
Diageo Fundamentals
| Return On Equity | 0.35 | ||||
| Return On Asset | 0.083 | ||||
| Profit Margin | 0.19 % | ||||
| Operating Margin | 0.27 % | ||||
| Current Valuation | 69.75 B | ||||
| Shares Outstanding | 2.22 B | ||||
| Shares Owned By Insiders | 0.11 % | ||||
| Shares Owned By Institutions | 63.24 % | ||||
| Price To Book | 6.69 X | ||||
| Price To Sales | 2.63 X | ||||
| Revenue | 16.1 B | ||||
| Gross Profit | 10.21 B | ||||
| EBITDA | 5.41 B | ||||
| Net Income | 3.07 B | ||||
| Cash And Equivalents | 1.44 B | ||||
| Total Debt | 18.62 B | ||||
| Book Value Per Share | 4.52 X | ||||
| Cash Flow From Operations | 3.26 B | ||||
| Earnings Per Share | 1.37 X | ||||
| Price To Earnings To Growth | 2.01 X | ||||
| Target Price | 2646.11 | ||||
| Number Of Employees | 30.09 K | ||||
| Beta | 0.39 | ||||
| Market Capitalization | 53.3 B | ||||
| Total Asset | 35.97 B | ||||
| Retained Earnings | 7.74 B | ||||
| Working Capital | 5.26 B | ||||
| Annual Yield | 0.03 % | ||||
| Net Asset | 35.97 B | ||||
| Last Dividend Paid | 1.03 |
About Diageo PLC Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Diageo PLC's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Diageo PLC using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Diageo PLC based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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Diageo PLC financial ratios help investors to determine whether Diageo Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Diageo with respect to the benefits of owning Diageo PLC security.