DiageoFRA:GUI +2.59%64 EV-to-EBITDA is 10.88 as of Jul. 03, 2026, which is 35% below its 10-year median of 16.78. GuruFocus rates FRA:GUI with a GF Score™ of 64/100 and a GF Value™ of €28.05 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 170 Beverages - Alcoholic companies, Diageo ranks better than 50.59% on this metric.
EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, Diageo's enterprise value is €59,738 Mil.
Diageo's EBITDA for the trailing twelve months (TTM) ended in Dec. 2025 was €5,489 Mil. Therefore, Diageo's EV-to-EBITDA for today is 10.88.
The historical rank and industry rank for Diageo's EV-to-EBITDA or its related term are showing as below:
FRA:GUI'
s EV-to-EBITDA Range Over the Past 10 Years
Min: 10.36 Med: 16.78 Max: 23.6
Current: 11.12
During the past 13 years, the highest EV-to-EBITDA of Diageo was 23.60. The lowest was 10.36. And the median was 16.78.
FRA:GUI's EV-to-EBITDA is ranked better than 50.59% of 170
companies
in the Beverages - Alcoholic industry
Industry Median: 11.09
vs FRA:GUI: 11.12
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.
As of today (2026-07-03), Diageo's stock price is €17.83.
Diageo's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2025 was €0.926. Therefore, Diageo's PE Ratio (TTM) for today is 19.25.
The "classic" EV-to-EBITDA is much better in capturing debt and net cash than the PE Ratio (TTM).
Diageo (FRA:GUI) EV-to-EBITDA Explanation
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Diageo's share price for today is €17.83.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Diageo's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2025 was €0.926.
* 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.
Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio (TTM).
The historical data trend for Diageo's EV-to-EBITDA 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 EV-to-EBITDA, along with its competitors' market caps and EV-to-EBITDA 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 EV-to-EBITDA vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Diageo's EV-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Diageo's EV-to-EBITDA falls into.
Diageo's current Enterprise Value is €59,738 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Diageo's EBITDA for the trailing twelve months (TTM) ended in Dec. 2025 was €5,489 Mil.
* 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 (FRA:GUI) has a EV-to-EBITDA of 10.88 as of Jul. 03, 2026. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Diageo. This is 35% below median its historical median of 16.78. Over the past decade, Diageo's EV-to-EBITDA has ranged from 10.36 to 23.60. According to the industry distribution chart, Diageo ranks #84 out of 170 companies in the Beverages - Alcoholic industry, placing it in the top 49.4%.
Is Diageo's EV-to-EBITDA too high?
Diageo's current EV-to-EBITDA of 10.88 is 35% below median its 10-year median of 16.78. Over the past 10 years, this metric has ranged from a low of 10.36 to a high of 23.60. The Beverages - Alcoholic industry median EV-to-EBITDA is 11.09. Diageo's value of 10.88 is 1.9% below this industry median. Based on the distribution chart, Diageo ranks #84 out of 170 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 EV-to-EBITDA compare to BF.B?
According to the Beverages - Alcoholic industry distribution chart, Diageo ranks #84 out of 170 companies for EV-to-EBITDA. This puts Diageo in the upper half of its industry. The industry median EV-to-EBITDA is 11.09. Diageo's value of 10.88 is 1.9% below this benchmark. Historically, Diageo's own EV-to-EBITDA has ranged from 10.36 to 23.60 over the past decade. While the company's 10-year median is 16.78 vs. the industry median of 11.09, 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 EV-to-EBITDA for a Beverages - Alcoholic company?
The median EV-to-EBITDA among Beverages - Alcoholic companies is 11.09, based on 170 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Diageo's current EV-to-EBITDA of 10.88 is 1.9% 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 EV-to-EBITDA mean?
A high EV-to-EBITDA can signal that a stock is expensive relative to its fundamentals. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Diageo. For the Beverages - Alcoholic industry, the median EV-to-EBITDA is 11.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diageo's current EV-to-EBITDA is 10.88, which is 35% below median its own 10-year median of 16.78. 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 Significantly Undervalued. The stock's GF Value™ is €28.05, compared to a current price of €17.83 — trading 36.4% below its estimated fair value. The current EV-to-EBITDA is 10.88, which is 35% below median its 10-year median of 16.78 and 1.9% below the Beverages - Alcoholic industry median of 11.09. 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 EV-to-EBITDA calculated?
EV-to-EBITDA is calculated from a company's financial statements. For Diageo (FRA:GUI), the current EV-to-EBITDA is 10.88 as of Jul. 03, 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 €17.83 is trading 36.4% below its estimated GF Value™ of €28.05.
GuruFocus considers Diageo to be Significantly Undervalued.
Key valuation signals for FRA:GUI:
EV-to-EBITDA: 10.88 (35% below median its 10-year median of 16.78)
GF Value™: €28.05 vs. price of €17.83 (36.4% below fair value)
Industry Position: 1.9% below the Beverages - Alcoholic median (#84 of 170)
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.
64GF Score
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