DiageoHAM:GUI -0.89%64 Earnings Yield (Joel Greenblatt) % is 0.00% as of Dec. 2025. GuruFocus rates HAM:GUI with a GF Score™ of 64/100 and a GF Value™ of €28.09 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 215 Beverages - Alcoholic companies, Diageo ranks better than 60.47% on this metric.
Diageo's Enterprise Value for the quarter that ended in Dec. 2025 was €60,256 Mil.
Diageo's EBIT for the trailing twelve months (TTM) ended in Dec. 2025 was €3,981 Mil. Diageo's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2025 was 0.00%.
The historical rank and industry rank for Diageo's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
HAM:GUI'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 2.64 Med: 5.42 Max: 8.79
Current: 6.72
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Diageo was 8.79%. The lowest was 2.64%. And the median was 5.42%.
HAM:GUI's Earnings Yield (Joel Greenblatt) % is ranked better than 60.47% of 215
companies
in the Beverages - Alcoholic industry
Industry Median: 5.28
vs HAM:GUI: 6.72
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Diageo's Forward Rate of Return (Yacktman) % for the quarter that ended in Dec. 2025 was 0.00%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.
Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.
Be Aware
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
Diageo Earnings Yield (Joel Greenblatt) % Related Terms
Diageo Earnings Yield (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Diageo's Earnings Yield (Joel Greenblatt) % 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.
HAM:GUI vs BF.B: Earnings Yield (Joel Greenblatt) % Comparison
For the Beverages - Wineries & Distilleries subindustry, Diageo's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % 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 Earnings Yield (Joel Greenblatt) % vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Diageo's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Diageo's Earnings Yield (Joel Greenblatt) % falls into.
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
Diageos Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Jun. 2025 is calculated as
For company reported semi-annually or annually, GuruFocus only calculate annual data for Earnings Yield (Joel Greenblatt) and apply the annual figure to corresponding quarter.
What does a Earnings Yield (Joel Greenblatt) % of 0.00% mean?
Diageo (HAM:GUI) has a Earnings Yield (Joel Greenblatt) % of 0.00% as of Dec. 2025. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Diageo and its competitors. Over the past decade, Diageo's Earnings Yield (Joel Greenblatt) % has ranged from 2.64 to 8.79. According to the industry distribution chart, Diageo ranks #85 out of 215 companies in the Beverages - Alcoholic industry, placing it in the top 39.5%.
Is Diageo's Earnings Yield (Joel Greenblatt) % too high?
Diageo's current Earnings Yield (Joel Greenblatt) % is 0.00%. Over the past 10 years, this metric has ranged from a low of 2.64 to a high of 8.79. Based on the distribution chart, Diageo ranks #85 out of 215 companies in the Beverages - Alcoholic industry, which is above the industry midpoint. Overall, Diageo has a GF Score™ of 64/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Diageo's Earnings Yield (Joel Greenblatt) % compare to BF.B?
According to the Beverages - Alcoholic industry distribution chart, Diageo ranks #85 out of 215 companies for Earnings Yield (Joel Greenblatt) %. This puts Diageo in the upper half of its industry. The industry median Earnings Yield (Joel Greenblatt) % is 5.28. Historically, Diageo's own Earnings Yield (Joel Greenblatt) % has ranged from 2.64 to 8.79 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Earnings Yield (Joel Greenblatt) % for a Beverages - Alcoholic company?
The median Earnings Yield (Joel Greenblatt) % among Beverages - Alcoholic companies is 5.28, based on 215 companies in the industry. Companies in the top quartile (top 25%) have a Earnings Yield (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, Earnings Yield (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Earnings Yield (Joel Greenblatt) % mean?
A high Earnings Yield (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Diageo and its competitors. For the Beverages - Alcoholic industry, the median Earnings Yield (Joel Greenblatt) % is 5.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diageo's current Earnings Yield (Joel Greenblatt) % is 0.00%. 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 €28.09, compared to a current price of €17.83 — trading 36.5% below its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is 0.00%. Diageo's overall GF Score™ is 64/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Yield (Joel Greenblatt) % calculated?
Earnings Yield (Joel Greenblatt) % is calculated from a company's financial statements. For Diageo (HAM:GUI), the current Earnings Yield (Joel Greenblatt) % is 0.00% 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 €17.83 is trading 36.5% below its estimated GF Value™ of €28.09.
GuruFocus considers Diageo to be Significantly Undervalued.
Key valuation signals for HAM:GUI:
Earnings Yield (Joel Greenblatt) %: 0.00%
GF Value™: €28.09 vs. price of €17.83 (36.5% below fair value)
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.
64GF Score
Get the complete analysis for HAM:GUI
Earnings Yield (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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