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DiageoFRA:GUI +2.82%61 3-Year FCF Growth Rate is 11.50% as of Jun. 2026, which is 39% above its 10-year median of 8.30. GuruFocus rates FRA:GUI with a GF Score™ of 61/100 and a GF Value™ of €24.24 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 131 Beverages - Alcoholic companies, Diageo ranks better than 58.02% on this metric.
During the past 12 months, Diageo's average Free Cash Flow per Share Growth Rate was 20.90% per year.
During the past 3 years, the average Free Cash Flow per Share Growth Rate was 11.50% per year.
During the past 5 years, the average Free Cash Flow per Share Growth Rate was -5.20% per year.
During the past 10 years, the average Free Cash Flow per Share Growth Rate was 0.80% per year.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average Free Cash Flow per Share growth rate.
During the past 13 years, the highest 3-Year average Free Cash Flow per Share Growth Rate of Diageo was 100.70% per year. The lowest was -13.70% per year. And the median was 8.30% per year.
Free Cash Flow per Share is the amount of Free Cash Flow per outstanding share of the company's stock. Free Cash Flow is considered one of the most important parameters to measure a company's earnings power by value investors because it is not subject to estimates of Depreciation, Depletion and Amortization (DDA). However, when we look at the Free Cash Flow, we should look from a long term perspective, because any year's Free Cash Flow can be drastically affected by the spending on Property, Plant, & Equipment (PPE) of the business in that year. Over the long term, Free Cash Flow should give pretty good picture on the real earnings power of the company. It's used in the calculation of Forward Rate of Return (Yacktman) %.
Diageo 3-Year FCF Growth Rate Related Terms
FRA:GUI vs BF.B: 3-Year FCF Growth Rate Comparison
For the Beverages - Wineries & Distilleries subindustry, Diageo's 3-Year FCF Growth Rate, along with its competitors' market caps and 3-Year FCF Growth Rate 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 3-Year FCF Growth Rate vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Diageo's 3-Year FCF Growth Rate distribution charts can be found below:
* The bar in red indicates where Diageo's 3-Year FCF Growth Rate falls into.
This is the 3-year average growth rate of Free Cash Flow per Share. The growth rate is calculated using exponential compounding based on the latest four year annual data.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average Free Cash Flow per Share growth rate.
What does a 3-Year FCF Growth Rate of 11.50% mean?
Diageo (FRA:GUI) has a 3-Year FCF Growth Rate of 11.50% as of Jun. 2026. 3-Year FCF Growth Rate is the 3-year average growth rate of Free Cash Flow per Share. View historical data for Diageo and its competitors. This is 39% above median its historical median of 8.30. According to the industry distribution chart, Diageo ranks #55 out of 131 companies in the Beverages - Alcoholic industry, placing it in the top 42%.
Is Diageo's 3-Year FCF Growth Rate too high?
Diageo's current 3-Year FCF Growth Rate of 11.50% is 39% above median its 10-year median of 8.30. The Beverages - Alcoholic industry median 3-Year FCF Growth Rate is 6.30. Diageo's value of 11.50% is 82.5% above this industry median. Based on the distribution chart, Diageo ranks #55 out of 131 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 3-Year FCF Growth Rate compare to BF.B?
According to the Beverages - Alcoholic industry distribution chart, Diageo ranks #55 out of 131 companies for 3-Year FCF Growth Rate. This puts Diageo in the upper half of its industry. The industry median 3-Year FCF Growth Rate is 6.30. Diageo's value of 11.50% is 82.5% above this benchmark. While the company's 10-year median is 8.30 vs. the industry median of 6.30, Diageo has consistently been above 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 3-Year FCF Growth Rate for a Beverages - Alcoholic company?
The median 3-Year FCF Growth Rate among Beverages - Alcoholic companies is 6.30, based on 131 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year FCF Growth Rate significantly above this median, while those in the bottom quartile fall well below. However, 3-Year FCF Growth Rate should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Diageo's current 3-Year FCF Growth Rate of 11.50% is 82.5% above 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 3-Year FCF Growth Rate mean?
A high 3-Year FCF Growth Rate can signal that a stock is expensive relative to its fundamentals. 3-Year FCF Growth Rate is the 3-year average growth rate of Free Cash Flow per Share. View historical data for Diageo and its competitors. For the Beverages - Alcoholic industry, the median 3-Year FCF Growth Rate is 6.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diageo's current 3-Year FCF Growth Rate is 11.50%, which is 39% above median its own 10-year median of 8.30. 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 €24.24, compared to a current price of €20.75 — trading 14.4% below its estimated fair value. The current 3-Year FCF Growth Rate is 11.50%, which is 39% above median its 10-year median of 8.30 and 82.5% above the Beverages - Alcoholic industry median of 6.30. 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 3-Year FCF Growth Rate calculated?
3-Year FCF Growth Rate is calculated from a company's financial statements. For Diageo (FRA:GUI), the current 3-Year FCF Growth Rate is 11.50% 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 €20.75 is trading 14.4% below its estimated GF Value™ of €24.24.
GuruFocus considers Diageo to be Modestly Undervalued.
Key valuation signals for FRA:GUI:
3-Year FCF Growth Rate: 11.50% (39% above median its 10-year median of 8.30)
GF Value™: €24.24 vs. price of €20.75 (14.4% below fair value)
Industry Position: 82.5% above the Beverages - Alcoholic median (#55 of 131)
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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