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Diageo PLC (NYSE:DEO)
Price-to-Free-Cash-Flow Ratio
37.24 (As of Today)

As of today, Diageo PLC's share price is $115.07. Diageo PLC's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Jun. 2014 was $3.09. Hence, Diageo PLC's Price-to-Free-Cash-Flow Ratio for today is 37.24.

DEO' s 10-Year Price-to-Free-Cash-Flow ratio Range
Min: 13.47   Max: 43.07
Current: 39.8

13.47
43.07

During the past 13 years, Diageo PLC's highest Price-to-Free-Cash-Flow Ratio was 43.07. The lowest was 13.47. And the median was 20.01.

DEO's Price-to-Free-Cash-Flow ratiois ranked higher than
77% of the 294 Companies
in the Global Beverages - Wineries & Distilleries industry.

( Industry Median: 34.78 vs. DEO: 39.80 )

Diageo PLC's Free Cash Flow per Share for the six months ended in Jun. 2014 was $2.37. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Jun. 2014 was $3.09.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of Diageo PLC was -18.20% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was -13.50% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was -11.90% per year. During the past 10 years, the average Free Cash Flow per Share Growth Rate was 2.30% per year.

During the past 13 years, Diageo PLC's highest 3-Year average Free Cash Flow per Share Growth Rate was 33.90% per year. The lowest was -13.50% per year. And the median was 8.60% per year.


Definition

Diageo PLC's Price-to-Free-Cash-Flow ratio for today is calculated as

Price-to-Free-Cash-Flow Ratio=Share Price/Free Cash Flow per Share (TTM)
=115.07/3.09
=37.24

Diageo PLC's Share Price of today is $115.07.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Diageo PLC's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Jun. 2014 was $3.09.

* 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:

Price-to-Free-Cash-Flow Ratio=Market Cap/Free Cash Flow

Explanation

Free Cash Flow is considered more important than earnings by value investors. The reason is because, in principle, only the net cash that can be taken from the business belongs to shareholders. This Free Cash Flow can be used to grow the business, reduce debt or return to shareholders in dividends or share buybacks.

In a DCF Calculation Free Cash Flow is used to determine the intrinsic value of companies.


Be Aware

In real business, Free Cash Flow can be affected by the change in accounts receivable, accounts payable, management’s decision on expansion, etc. Therefore, investors should look at the Free Cash Flow over the longer term. Long-term average of Free Cash Flow is a more reliable indicator for real free cash flow.


Related Terms

Free Cash Flow, Free Cash Flow per Share, P/S Ratio, P/B Ratio, P/E 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

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
pfcf 17.1519.3620.7419.2517.0913.7717.9325.6633.5740.57

Diageo PLC Semi-Annual Data

Dec09Jun10Dec10Jun11Dec11Jun12Dec12Jun13Dec13Jun14
pfcf 14.8513.7717.1717.9324.2525.6624.8233.570.0040.57
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