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Diageo PLC (NYSE:DEO)
P/B Ratio
6.50 (As of Today)

As of today, Diageo PLC's share price is $123.88. Diageo PLC's Book Value per Share for the fiscal year that ended in 201306 was $17.01. Hence, Diageo PLC's P/B Ratio of today is 6.50.

Good Sign:

Diageo PLC stock P/B Ratio (=6.49) is close to 5-year low of 5.85

DEO' s 10-Year P/B Ratio Range
Min: 5.33   Max: 10.22
Current: 6.5

5.33
10.22

During the past 13 years, Diageo PLC's highest P/B Ratio was 10.22. The lowest was 5.33. And the median was 7.10.

DEO's P/B Ratiois ranked higher than
59% of the 261 Companies
in the Global Beverages - Wineries & Distilleries industry.

( Industry Median: 2.40 vs. DEO: 6.50 )

During the past 12 months, Diageo PLC's average Book Value Per Share Growth Rate was 2.00% per year. During the past 3 years, the average Book Value Per Share Growth Rate was 24.20% per year. During the past 5 years, the average Book Value Per Share Growth Rate was 24.10% per year. During the past 10 years, the average Book Value Per Share Growth Rate was 7.00% per year.

During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Diageo PLC was 24.20% per year. The lowest was -25.60% per year. And the median was 2.60% per year.


Definition

Diageo PLC's P/B ratio for today is calculated as follows:

P/B Ratio=Share Price/Book Value per Share (A: 201306)
=123.88/17.01
=7.28

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

It can also be calculated from the numbers for the whole company:

A closely related ratio is called Price-to-Tangible-Book Ratio. The difference between Price-to-Tangible-Book Ratio and Price-to-Book Ratio is that book value other than intangibles are used in the calculation.


Explanation

Unlike valuation ratios relative to the earning power such as P/E ratio, P/S ratio or Price-to-Free-Cash-Flow ratio, the Price-to-Book Ratio measures the valuation of the stock relative to the underlying asset of the company.

The Price-to-Book Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.


Be Aware

Some businesses have very light assets, such as software companies or insurance agencies. The Price-to-Book Ratio does not work well for these companies. Some companies even have negative equity, so the Price-to-Book Ratio cannot be applied to them.


Related Terms

Book Value per Share, Market Cap, Total Equity, Preferred Stock, P/E ratio, P/S ratio, Price-to-Free-Cash-Flow ratio, Price-to-Tangible-Book Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Diageo PLC Annual Data

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
pb 6.155.806.207.556.867.797.056.658.146.76

Diageo PLC Semi-Annual Data

Jun09Dec09Jun10Dec10Jun11Dec11Jun12Dec12Jun13Dec13
pb 7.796.897.056.016.657.558.147.236.767.81
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