DiageoHAM:GUI -3.54%67 Debt-to-Equity is 2.03 as of Dec. 2025, which is 0% below its 10-year median of 2.04. GuruFocus rates HAM:GUI with a GF Score™ of 67/100 and a GF Value™ of €27.98 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 182 Beverages - Alcoholic companies, Diageo ranks worse than 95.05% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Diageo's Debt-to-Equity or its related term are showing as below:
HAM:GUI'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.9 Med: 2.04 Max: 2.55
Current: 2.03
During the past 13 years, the highest Debt-to-Equity Ratio of Diageo was 2.55. The lowest was 0.90. And the median was 2.04.
HAM:GUI's Debt-to-Equity is ranked worse than 95.05% of 182
companies
in the Beverages - Alcoholic industry
Industry Median: 0.38
vs HAM:GUI: 2.03
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Diageo Debt-to-Equity Related Terms
Diageo Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Diageo's Debt-to-Equity 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.
For the Beverages - Wineries & Distilleries subindustry, Diageo's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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 Debt-to-Equity vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Diageo's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Diageo's Debt-to-Equity 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.
Diageo (HAM:GUI) has a Debt-to-Equity of 2.03 as of Dec. 2025. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Diageo and its competitors. This is near median its historical median of 2.04. Over the past decade, Diageo's Debt-to-Equity has ranged from 0.90 to 2.55. According to the industry distribution chart, Diageo ranks #173 out of 182 companies in the Beverages - Alcoholic industry, placing it in the top 95.1%.
Is Diageo's Debt-to-Equity too high?
Diageo's current Debt-to-Equity of 2.03 is near median its 10-year median of 2.04. Over the past 10 years, this metric has ranged from a low of 0.90 to a high of 2.55. The Beverages - Alcoholic industry median Debt-to-Equity is 0.38. Diageo's value of 2.03 is 434.2% above this industry median. Based on the distribution chart, Diageo ranks #173 out of 182 companies in the Beverages - Alcoholic industry, which is in the bottom quartile relative to peers. Overall, Diageo has a GF Score™ of 67/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Diageo's Debt-to-Equity compare to BF.B?
According to the Beverages - Alcoholic industry distribution chart, Diageo ranks #173 out of 182 companies for Debt-to-Equity. This places Diageo in the lower half of its industry. The industry median Debt-to-Equity is 0.38. Diageo's value of 2.03 is 434.2% above this benchmark. Historically, Diageo's own Debt-to-Equity has ranged from 0.90 to 2.55 over the past decade. While the company's 10-year median is 2.04 vs. the industry median of 0.38, 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 Debt-to-Equity for a Beverages - Alcoholic company?
The median Debt-to-Equity among Beverages - Alcoholic companies is 0.38, based on 182 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Diageo's current Debt-to-Equity of 2.03 is 434.2% 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 Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Diageo and its competitors. For the Beverages - Alcoholic industry, the median Debt-to-Equity is 0.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diageo's current Debt-to-Equity is 2.03, which is near median its own 10-year median of 2.04. 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 (HAM:GUI) is currently considered Significantly Undervalued. The stock's GF Value™ is €27.98, compared to a current price of €17.71 — trading 36.7% below its estimated fair value. The current Debt-to-Equity is 2.03, which is near median its 10-year median of 2.04 and 434.2% above the Beverages - Alcoholic industry median of 0.38. Diageo's overall GF Score™ is 67/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Diageo (HAM:GUI), the current Debt-to-Equity is 2.03 as of Dec. 2025. 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 (HAM:GUI) Overvalued in 2026?
Based on GuruFocus' analysis, Diageo stock appears to be undervalued.
The current stock price of €17.71 is trading 36.7% below its estimated GF Value™ of €27.98.
GuruFocus considers Diageo to be Significantly Undervalued.
Key valuation signals for HAM:GUI:
Debt-to-Equity: 2.03 (near median its 10-year median of 2.04)
GF Value™: €27.98 vs. price of €17.71 (36.7% below fair value)
Industry Position: 434.2% above the Beverages - Alcoholic median (#173 of 182)
No single metric tells the full story. See the HAM: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.
67GF Score
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