Diageo plc DGE.L
Composite 52/100; the shares have moved about 29% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Growth ranks 25/100 — a moderate mark against it.
Quality ranks 70/100 — a moderate point in its favour. Income ranks 67/100 — a moderate point in its favour. Valuation ranks 57/100 — a slight point in its favour.
Growth ranks 25/100 — a moderate mark against it. Momentum ranks 44/100 — a slight mark against it. Balance-sheet strength ranks 50/100 — a slight mark against it.
What the company does Diageo plc is a global leader in premium alcoholic beverages, owning brands like Johnnie Walker, Guinness, Don Julio, and Smirnoff. It operates across 180+ markets, spanning spirits, beer, wine, and ready-to-drink products. The company emphasizes cultural relevance, as highlighted by recent executive remarks at the Global Game Summit.
Key financials Diageo reports strong profitability metrics: ROE 19.7%, ROA 7.2%, and ROCE 22.4%. Gross, operating, and net margins stand at 60.0%, 31.3%, and 12.2%, respectively. Revenue declined -4.0% year-over-year, while EPS grew 2.9%. The dividend yield is 5.3%, with a payout ratio of 94.9%.
Stock health The stock shows mixed momentum: +15.46% over 3 months, +2.82% over 6 months, and -13.96% over 12 months. The RSI(14) is 66.40, indicating moderate overbought conditions. Sideravia scores highlight strong quality (73.4) and income (75.9), but weaker growth (36.0).
Price vs fair value The stock trades at a **PREMIUM of 48.50%** versus our fair-value estimate of 859.14 and a **discount of 15.12%** to the 12-month target of 1920.22. - Premium vs fair value may reflect investor confidence in brand strength and cultural positioning (Diageo Exec at Global Game Summit, NYSE). - Discount to target could stem from revenue decline (-4.0%) and margin pressures (Key Financials). - High dividend yield (5.3%) may support demand despite valuation concerns (Dividend yield 5.3%).
Looking forward Forward P/E of 12.45 and PEG of 0.22 suggest undemanding valuations relative to growth, though revenue trends (-4.0%) remain a watchpoint. Analysts (n=22) see 1920.22 as a potential upside, implying confidence in brand execution and market share gains.
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Data as of 2026-09-04, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.