GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Diageo PLC (NYSE:DEO) » Definitions » Shiller PE Ratio

Diageo (Diageo) Shiller PE Ratio : 20.86 (As of Apr. 25, 2024)


View and export this data going back to 1997. Start your Free Trial

What is Diageo Shiller PE Ratio?

As of today (2024-04-25), Diageo's current share price is $138.12. Diageo's E10 for the fiscal year that ended in Jun23 was $6.62. Diageo's Shiller PE Ratio for today is 20.86.

The historical rank and industry rank for Diageo's Shiller PE Ratio or its related term are showing as below:

DEO' s Shiller PE Ratio Range Over the Past 10 Years
Min: 20.8   Med: 28.02   Max: 38.81
Current: 21.45

During the past 13 years, Diageo's highest Shiller PE Ratio was 38.81. The lowest was 20.80. And the median was 28.02.

DEO's Shiller PE Ratio is ranked better than
54.2% of 131 companies
in the Beverages - Alcoholic industry
Industry Median: 23.33 vs DEO: 21.45

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Diageo's adjusted earnings per share data of for the fiscal year that ended in Jun23 was $8.294. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $6.62 for the trailing ten years ended in Jun23.

Shiller PE for Stocks: The True Measure of Stock Valuation


Diageo Shiller PE Ratio Historical Data

The historical data trend for Diageo's Shiller PE Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Diageo Shiller PE Ratio Chart

Diageo Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Shiller PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 33.47 26.87 33.15 30.17 26.10

Diageo Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Shiller PE Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - 30.17 - 26.10 -

Competitive Comparison of Diageo's Shiller PE Ratio

For the Beverages - Wineries & Distilleries subindustry, Diageo's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Diageo's Shiller PE Ratio Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Diageo's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Diageo's Shiller PE Ratio falls into.



Diageo Shiller PE Ratio Calculation

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Diageo's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=138.12/6.62
=20.86

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Diageo's E10 for the fiscal year that ended in Jun23 is calculated as:

For example, Diageo's adjusted earnings per share data for the fiscal year that ended in Jun23 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Jun23 (Change)*Current CPI (Jun23)
=8.294/129.4000*129.4000
=8.294

Current CPI (Jun23) = 129.4000.

Diageo Annual Data

Earnings per Share (Diluted) CPI Adj_EPS
201406 6.084 99.800 7.888
201506 5.950 100.100 7.692
201606 4.757 101.000 6.095
201706 5.490 103.500 6.864
201806 6.333 105.900 7.738
201906 6.595 107.900 7.909
202006 2.949 108.800 3.507
202106 6.278 111.400 7.292
202206 6.778 120.500 7.279
202306 8.294 129.400 8.294

Add all the adjusted EPS together and divide 10 will get our E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Diageo  (NYSE:DEO) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.


Be Aware

Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.


Diageo Shiller PE Ratio Related Terms

Thank you for viewing the detailed overview of Diageo's Shiller PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Diageo (Diageo) Business Description

Address
16 Great Marlborough Street, London, GBR, W1F 7HS
The product of a merger between Grand Metropolitan and Guinness in 1997, Diageo is one of the world's leading producers of branded premium spirits, approximately level with Kweichow Moutai in revenue terms. It also produces and markets beer and wine. Brands include Johnnie Walker blended scotch, Smirnoff vodka, Crown Royal Canadian whiskey, Captain Morgan rum, Casamigos tequila, Tanqueray gin, Baileys Irish Cream, and Guinness stout. Diageo also owns 34% of premium champagne and cognac maker Moet Hennessy, a subsidiary of French luxury-goods maker LVMH Moet Hennessy-Louis Vuitton, and a near-56% stake in India's United Spirits.

Diageo (Diageo) Headlines

From GuruFocus