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Diageo (XTER:GUI) Cyclically Adjusted PB Ratio : 4.58 (As of Jun. 21, 2025)


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What is Diageo Cyclically Adjusted PB Ratio?

As of today (2025-06-21), Diageo's current share price is €22.10. Diageo's Cyclically Adjusted Book per Share for the fiscal year that ended in Jun24 was €4.83. Diageo's Cyclically Adjusted PB Ratio for today is 4.58.

The historical rank and industry rank for Diageo's Cyclically Adjusted PB Ratio or its related term are showing as below:

XTER:GUI' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 4.62   Med: 9.36   Max: 11.98
Current: 4.63

During the past 13 years, Diageo's highest Cyclically Adjusted PB Ratio was 11.98. The lowest was 4.62. And the median was 9.36.

XTER:GUI's Cyclically Adjusted PB Ratio is ranked worse than
79.63% of 162 companies
in the Beverages - Alcoholic industry
Industry Median: 1.795 vs XTER:GUI: 4.63

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

Diageo's adjusted book value per share data of for the fiscal year that ended in Jun24 was €4.198. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is €4.83 for the trailing ten years ended in Jun24.

Shiller PE for Stocks: The True Measure of Stock Valuation


Diageo Cyclically Adjusted PB Ratio Historical Data

The historical data trend for Diageo's Cyclically Adjusted PB Ratio 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.

* Premium members only.

Diageo Cyclically Adjusted PB Ratio Chart

Diageo Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.25 10.26 9.54 8.53 6.12

Diageo Semi-Annual Data
Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
Cyclically Adjusted PB Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - 8.53 - 6.12 -

Competitive Comparison of Diageo's Cyclically Adjusted PB Ratio

For the Beverages - Wineries & Distilleries subindustry, Diageo's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio 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's Cyclically Adjusted PB Ratio Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Diageo's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where Diageo's Cyclically Adjusted PB Ratio falls into.


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Diageo Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.

Diageo's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=22.10/4.83
=4.58

* 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.

Diageo's Cyclically Adjusted Book per Share for the fiscal year that ended in Jun24 is calculated as:

For example, Diageo's adjusted Book Value per Share data for the fiscal year that ended in Jun24 was:

Adj_Book=Book Value per Share/CPI of Jun24 (Change)*Current CPI (Jun24)
=4.198/133.0000*133.0000
=4.198

Current CPI (Jun24) = 133.0000.

Diageo Annual Data

Book Value per Share CPI Adj_Book
201506 4.331 100.100 5.754
201606 4.037 101.000 5.316
201706 4.716 103.500 6.060
201806 4.397 105.900 5.522
201906 3.942 107.900 4.859
202006 3.170 108.800 3.875
202106 3.392 111.400 4.050
202206 3.916 120.500 4.322
202306 4.054 129.400 4.167
202406 4.198 133.000 4.198

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Diageo  (XTER:GUI) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.


Diageo Cyclically Adjusted PB Ratio Related Terms

Thank you for viewing the detailed overview of Diageo's Cyclically Adjusted PB Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Diageo Business Description

Address
16 Great Marlborough Street, London, GBR, W1F 7HS
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. The firm has also shed noncore brands over the years, including the majority of its wine assets in 2015.

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