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Diageo PLC (NYSE:DEO)
PEG Ratio:
PE(NRI) Ratio / EBITDA 5-Y Growth
5.97 (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 18.51. Diageo PLC's 5-year average EBITDA growth rate is 3.10%. Therefore, Diageo PLC's PEG for today is 5.97.

DEO' s PEG Range Over the Past 10 Years
Min: 1.58   Max: 56.97
Current: 6.45

1.58
56.97

During the past 13 years, Diageo PLC's highest PEG was 56.97. The lowest was 1.58. And the median was 3.59.

DEO's PEG is ranked lower than
77% of the 83 Companies
in the Global Beverages - Wineries & Distilleries industry.

( Industry Median: 2.42 vs. DEO: 6.45 )

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)
=18.5050052854/3.10
=5.97

* 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 8.2353.285.342.091.721.812.202.293.686.30

Diageo PLC Semi-Annual Data

Jun11Dec11Jun12Dec12Jun13Dec13Jun14Dec14Jun15Dec15
peg 1.810.002.200.002.290.003.680.006.300.00
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