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Diageo PLC (NYSE:DEO)
PEG Ratio:
PE(NRI) Ratio / EBITDA 5-Y Growth
5.71 (As of Today)

PEG is defined as the P/E (NRI) Ratio divided by the growth ratio. The growth rate we use is the 5-year average EBITDA growth rate. As of today, Diageo PLC's P/E (NRI) Ratio is 17.70. Diageo PLC's 5-year average EBITDA growth rate is 3.10%. Therefore, Diageo PLC's PEG for today is 5.71.

DEO' s PEG Range Over the Past 10 Years
Min: 0.98   Max: 6.66
Current: 6.42

0.98
6.66

During the past 13 years, Diageo PLC's highest PEG was 6.66. The lowest was 0.98. And the median was 2.30.

DEO's PEG is ranked lower than
70% of the 86 Companies
in the Global Beverages - Wineries & Distilleries industry.

( Industry Median: 2.66 vs. DEO: 6.42 )

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


Definition

PEG is defined as the P/E (NRI) Ratio divided by the growth ratio. The ratio we use is the 5-year average EBITDA growth rate.

Diageo PLC's PEG for today is calculated as

PEG=P/E (NRI) Ratio/EBITDA Growth Rate (5-year average)
=17.7025052854/3.10
=5.71

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


Explanation

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG. PEG 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.


Related Terms

P/E (NRI) Ratio, Peter Lynch Fair Value


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

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
peg 4.813.691.241.841.511.812.112.183.556.32

Diageo PLC Semi-Annual Data

Jun11Dec11Jun12Dec12Jun13Dec13Jun14Dec14Jun15Dec15
peg 1.810.002.110.002.180.003.550.006.320.00
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