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DiageoFRA:GUI -1.08%61 Cyclically Adjusted Price-to-FCF is 14.02 as of Sep. 01, 2026, which is 59% below its 10-year median of 34.27. GuruFocus rates FRA:GUI with a GF Score™ of 61/100 and a GF Value™ of €24.03 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 110 Beverages - Alcoholic companies, Diageo ranks better than 60% on this metric.
As of today (2026-09-01), Diageo's current share price is €19.77. Diageo's Cyclically Adjusted FCF per Share for the fiscal year that ended in Jun26 was €1.41. Diageo's Cyclically Adjusted Price-to-FCF for today is 14.02.
The historical rank and industry rank for Diageo's Cyclically Adjusted Price-to-FCF or its related term are showing as below:
FRA:GUI'
s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 11.89 Med: 34.27 Max: 45.86
Current: 14.19
During the past 13 years, Diageo's highest Cyclically Adjusted Price-to-FCF was 45.86. The lowest was 11.89. And the median was 34.27.
FRA:GUI's Cyclically Adjusted Price-to-FCF is ranked better than 60% of 110
companies
in the Beverages - Alcoholic industry
Industry Median: 17.815
vs FRA:GUI: 14.19
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 Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.
Diageo's adjusted free cash flow per share data of for the fiscal year that ended in Jun26 was €1.243. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is €1.41 for the trailing ten years ended in Jun26.
Shiller PE for Stocks: The True Measure of Stock Valuation
Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow 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 Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.
Diageo Cyclically Adjusted Price-to-FCF Related Terms
Diageo Cyclically Adjusted Price-to-FCF Historical Data
* Premium members only.
The historical data trend for Diageo's Cyclically Adjusted Price-to-FCF 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: Cyclically Adjusted Price-to-FCF Comparison
For the Beverages - Wineries & Distilleries subindustry, Diageo's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF 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 Cyclically Adjusted Price-to-FCF vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Diageo's Cyclically Adjusted Price-to-FCF distribution charts can be found below:
* The bar in red indicates where Diageo's Cyclically Adjusted Price-to-FCF falls into.
Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF 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 Price-to-FCF.
Diageo's Cyclically Adjusted Price-to-FCF for today is calculated as
* 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.
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.
What does a Cyclically Adjusted Price-to-FCF of 14.02 mean?
Diageo (FRA:GUI) has a Cyclically Adjusted Price-to-FCF of 14.02 as of Sep. 01, 2026. Cyclically Adjusted Price-to-FCF Ratio is the ratio of share price to a company's inflation-adjusted FCF per share over a 10-year period. View historical data on Diageo and its competitors. This is 59% below median its historical median of 34.27. Over the past decade, Diageo's Cyclically Adjusted Price-to-FCF has ranged from 11.89 to 45.86. According to the industry distribution chart, Diageo ranks #44 out of 110 companies in the Beverages - Alcoholic industry, placing it in the top 40%.
Is Diageo's Cyclically Adjusted Price-to-FCF too high?
Diageo's current Cyclically Adjusted Price-to-FCF of 14.02 is 59% below median its 10-year median of 34.27. Over the past 10 years, this metric has ranged from a low of 11.89 to a high of 45.86. The Beverages - Alcoholic industry median Cyclically Adjusted Price-to-FCF is 17.82. Diageo's value of 14.02 is 21.3% below this industry median. Based on the distribution chart, Diageo ranks #44 out of 110 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 Cyclically Adjusted Price-to-FCF compare to BF.B?
According to the Beverages - Alcoholic industry distribution chart, Diageo ranks #44 out of 110 companies for Cyclically Adjusted Price-to-FCF. This puts Diageo in the upper half of its industry. The industry median Cyclically Adjusted Price-to-FCF is 17.82. Diageo's value of 14.02 is 21.3% below this benchmark. Historically, Diageo's own Cyclically Adjusted Price-to-FCF has ranged from 11.89 to 45.86 over the past decade. While the company's 10-year median is 34.27 vs. the industry median of 17.82, 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 Cyclically Adjusted Price-to-FCF for a Beverages - Alcoholic company?
The median Cyclically Adjusted Price-to-FCF among Beverages - Alcoholic companies is 17.82, based on 110 companies in the industry. Companies in the top quartile (top 25%) have a Cyclically Adjusted Price-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, Cyclically Adjusted Price-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Diageo's current Cyclically Adjusted Price-to-FCF of 14.02 is 21.3% 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 Cyclically Adjusted Price-to-FCF mean?
A high Cyclically Adjusted Price-to-FCF can signal that a stock is expensive relative to its fundamentals. Cyclically Adjusted Price-to-FCF Ratio is the ratio of share price to a company's inflation-adjusted FCF per share over a 10-year period. View historical data on Diageo and its competitors. For the Beverages - Alcoholic industry, the median Cyclically Adjusted Price-to-FCF is 17.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diageo's current Cyclically Adjusted Price-to-FCF is 14.02, which is 59% below median its own 10-year median of 34.27. 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 €24.03, compared to a current price of €19.77 — trading 17.7% below its estimated fair value. The current Cyclically Adjusted Price-to-FCF is 14.02, which is 59% below median its 10-year median of 34.27 and 21.3% below the Beverages - Alcoholic industry median of 17.82. 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 Cyclically Adjusted Price-to-FCF calculated?
Cyclically Adjusted Price-to-FCF is calculated from a company's financial statements. For Diageo (FRA:GUI), the current Cyclically Adjusted Price-to-FCF is 14.02 as of Sep. 01, 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 €19.77 is trading 17.7% below its estimated GF Value™ of €24.03.
GuruFocus considers Diageo to be Modestly Undervalued.
Key valuation signals for FRA:GUI:
Cyclically Adjusted Price-to-FCF: 14.02 (59% below median its 10-year median of 34.27)
GF Value™: €24.03 vs. price of €19.77 (17.7% below fair value)
Industry Position: 21.3% below the Beverages - Alcoholic median (#44 of 110)
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
Get the complete analysis for FRA:GUI
Cyclically Adjusted Price-to-FCF is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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