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DiageoFRA:GUI -2.14%61 Capex-to-Operating-Cash-Flow is 0.26 as of Jun. 2026, which is 7% below its 10-year median of 0.28. GuruFocus rates FRA:GUI with a GF Score™ of 61/100 and a GF Value™ of €24.25 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 127 Beverages - Alcoholic companies, Diageo ranks better than 68.5% on this metric.
Capex-to-Operating-Cash-Flow assesses how much of a company’s cash flow from operations is being devoted to capital expenditure. It’s also useful to distinguish whether the company is capital intensive or not.
Capex-to-Operating-Cash-Flow ratio assesses how much of a company’s Cash Flow from Operations is being devoted to Capital Expenditure. It is a good indicator in terms of how much the company is focused on growth. In general, a high Capex-to-Operating-Cash-Flow ratio indicates that the company is investing more in physical assets and is focused on growth and expansion. Conversely, lower ratio could indicate that a company has reached maturity and is no longer pursuing aggressive growth.
Moreover, the ratio is also useful to distinguish whether the company is capital intensive or not. If the ratio is large, then the company tends to be capital intensive. Lower ratio suggests that it’s a capital-light business. The ratio can be combined with ROIC % to identify whether the company is an asset-light business that has a high return on invested capital. This is one question investors commonly ask to see if a company qualifies as a good company.
Diageo Capex-to-Operating-Cash-Flow Related Terms
Diageo Capex-to-Operating-Cash-Flow Historical Data
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The historical data trend for Diageo's Capex-to-Operating-Cash-Flow 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.
FRA:GUI vs BF.B: Capex-to-Operating-Cash-Flow Comparison
For the Beverages - Wineries & Distilleries subindustry, Diageo's Capex-to-Operating-Cash-Flow, along with its competitors' market caps and Capex-to-Operating-Cash-Flow 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 Capex-to-Operating-Cash-Flow vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Diageo's Capex-to-Operating-Cash-Flow distribution charts can be found below:
* The bar in red indicates where Diageo's Capex-to-Operating-Cash-Flow falls into.
* 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.
What does a Capex-to-Operating-Cash-Flow of 0.26 mean?
Diageo (FRA:GUI) has a Capex-to-Operating-Cash-Flow of 0.26 as of Jun. 2026. Capex to Operating Cash Flow ratio assesses how much of a company’s cash flow from operations is being devoted to capital expenditure. View historical data on Diageo and its competitors. This is near median its historical median of 0.28. Over the past decade, Diageo's Capex-to-Operating-Cash-Flow has ranged from 0.17 to 0.39. According to the industry distribution chart, Diageo ranks #40 out of 127 companies in the Beverages - Alcoholic industry, placing it in the top 31.5%.
Is Diageo's Capex-to-Operating-Cash-Flow too high?
Diageo's current Capex-to-Operating-Cash-Flow of 0.26 is near median its 10-year median of 0.28. Over the past 10 years, this metric has ranged from a low of 0.17 to a high of 0.39. The Beverages - Alcoholic industry median Capex-to-Operating-Cash-Flow is 0.38. Diageo's value of 0.26 is 31.6% below this industry median. Based on the distribution chart, Diageo ranks #40 out of 127 companies in the Beverages - Alcoholic industry, which is above the industry midpoint. Overall, Diageo has a GF Score™ of 61/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Diageo's Capex-to-Operating-Cash-Flow compare to BF.B?
According to the Beverages - Alcoholic industry distribution chart, Diageo ranks #40 out of 127 companies for Capex-to-Operating-Cash-Flow. This puts Diageo in the upper half of its industry. The industry median Capex-to-Operating-Cash-Flow is 0.38. Diageo's value of 0.26 is 31.6% below this benchmark. Historically, Diageo's own Capex-to-Operating-Cash-Flow has ranged from 0.17 to 0.39 over the past decade. While the company's 10-year median is 0.28 vs. the industry median of 0.38, Diageo has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Capex-to-Operating-Cash-Flow for a Beverages - Alcoholic company?
The median Capex-to-Operating-Cash-Flow among Beverages - Alcoholic companies is 0.38, based on 127 companies in the industry. Companies in the top quartile (top 25%) have a Capex-to-Operating-Cash-Flow significantly above this median, while those in the bottom quartile fall well below. However, Capex-to-Operating-Cash-Flow should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Diageo's current Capex-to-Operating-Cash-Flow of 0.26 is 31.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Capex-to-Operating-Cash-Flow mean?
A high Capex-to-Operating-Cash-Flow can signal that a stock is expensive relative to its fundamentals. Capex to Operating Cash Flow ratio assesses how much of a company’s cash flow from operations is being devoted to capital expenditure. View historical data on Diageo and its competitors. For the Beverages - Alcoholic industry, the median Capex-to-Operating-Cash-Flow is 0.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diageo's current Capex-to-Operating-Cash-Flow is 0.26, which is near median its own 10-year median of 0.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Diageo stock overvalued right now?
Based on GuruFocus' analysis, Diageo (FRA:GUI) is currently considered Modestly Undervalued. The stock's GF Value™ is €24.25, compared to a current price of €19.87 — trading 18.1% below its estimated fair value. The current Capex-to-Operating-Cash-Flow is 0.26, which is near median its 10-year median of 0.28 and 31.6% below the Beverages - Alcoholic industry median of 0.38. Diageo's overall GF Score™ is 61/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Capex-to-Operating-Cash-Flow calculated?
Capex-to-Operating-Cash-Flow is calculated from a company's financial statements. For Diageo (FRA:GUI), the current Capex-to-Operating-Cash-Flow is 0.26 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Diageo (FRA:GUI) Overvalued in 2026?
Based on GuruFocus' analysis, Diageo stock appears to be undervalued.
The current stock price of €19.87 is trading 18.1% below its estimated GF Value™ of €24.25.
GuruFocus considers Diageo to be Modestly Undervalued.
Key valuation signals for FRA:GUI:
Capex-to-Operating-Cash-Flow: 0.26 (near median its 10-year median of 0.28)
GF Value™: €24.25 vs. price of €19.87 (18.1% below fair value)
Industry Position: 31.6% below the Beverages - Alcoholic median (#40 of 127)
No single metric tells the full story. See the FRA:GUI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formed in 1997 through the merger of Grand Metropolitan and Guinness, Diageo is the largest distiller globally by sales. Diageo acquired some of the Seagram assets in 2001, which gave it brands such as Captain Morgan rum and Crown Royal Canadian whisky. Since then, mergers and acquisitions have mostly been bolt-on in nature, plugging gaps in the company's product and geographic portfolio.
61GF Score
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Capex-to-Operating-Cash-Flow is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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