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Diageo (Diageo) PEG Ratio

: 2.26 (As of Today)
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PE Ratio without NRI / 5-Year EBITDA Growth Rate*

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Diageo's PE Ratio without NRI is 17.40. Diageo's 5-Year EBITDA growth rate is 7.70%. Therefore, Diageo's PEG Ratio for today is 2.26.

* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


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

DEO' s PEG Ratio Range Over the Past 10 Years
Min: 2.18   Med: 5.25   Max: 32.14
Current: 2.26


During the past 13 years, Diageo's highest PEG Ratio was 32.14. The lowest was 2.18. And the median was 5.25.


DEO's PEG Ratio is ranked worse than
54.26% of 94 companies
in the Beverages - Alcoholic industry
Industry Median: 2 vs DEO: 2.26

Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.


Diageo PEG Ratio Historical Data

The historical data trend for Diageo's PEG 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 Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
PEG Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.81 4.10 5.35 6.03 2.71

Diageo Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
PEG Ratio 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 Premium Member Only Premium Member Only Premium Member Only - 6.03 - 2.71 -

Competitive Comparison

For the Beverages - Wineries & Distilleries subindustry, Diageo's PEG Ratio, along with its competitors' market caps and PEG 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 PEG Ratio Distribution

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

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



Diageo PEG Ratio Calculation

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The ratio we use is the 5-Year EBITDA growth rate.

Diageo's PEG Ratio for today is calculated as

PEG Ratio=PE Ratio without NRI/5-Year EBITDA Growth Rate*
=17.397416413374/7.70
=2.26

* 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.

* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


Diageo  (NYSE:DEO) PEG Ratio Explanation

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.


Diageo PEG Ratio Related Terms

Thank you for viewing the detailed overview of Diageo's PEG 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.