DiageoFRA:GUI +1.59%67 FCF Yield % is 5.41 as of Jun. 24, 2026, which is 53% above its 10-year median of 3.54. GuruFocus rates FRA:GUI with a GF Score™ of 67/100 and a GF Value™ of €27.76 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 213 Beverages - Alcoholic companies, Diageo ranks better than 58.22% on this metric.
FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
As of today, Diageo's Trailing 12-Month Free Cash Flow is €2,156 Mil, and Market Cap is €39,984 Mil. Therefore, Diageo's FCF Yield % for today is 5.41%.
The historical rank and industry rank for Diageo's FCF Yield % or its related term are showing as below:
FRA:GUI'
s FCF Yield % Range Over the Past 10 Years
Min: 1.94 Med: 3.54 Max: 6.38
Current: 5.41
During the past 13 years, the highest FCF Yield % of Diageo was 6.38%. The lowest was 1.94%. And the median was 3.54%.
FRA:GUI's FCF Yield % is ranked better than 58.22% of 213
companies
in the Beverages - Alcoholic industry
Industry Median: 3.31
vs FRA:GUI: 5.41
Diageo's FCF Margin % for the quarter that ended in Dec. 2025 was 14.51%.
Diageo FCF Yield % Explanation
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Diageo FCF Yield % Related Terms
Diageo FCF Yield % Historical Data
* Premium members only.
The historical data trend for Diageo's FCF Yield % 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 FCF Yield %, along with its competitors' market caps and FCF Yield % 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 FCF Yield % vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Diageo's FCF Yield % distribution charts can be found below:
* The bar in red indicates where Diageo's FCF Yield % 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 (FRA:GUI) has a FCF Yield % of 5.41 as of Jun. 24, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Diageo and its competitors. This is 53% above median its historical median of 3.54. Over the past decade, Diageo's FCF Yield % has ranged from 1.94 to 6.38. According to the industry distribution chart, Diageo ranks #89 out of 213 companies in the Beverages - Alcoholic industry, placing it in the top 41.8%.
Is Diageo's FCF Yield % too high?
Diageo's current FCF Yield % of 5.41 is 53% above median its 10-year median of 3.54. Over the past 10 years, this metric has ranged from a low of 1.94 to a high of 6.38. The Beverages - Alcoholic industry median FCF Yield % is 3.31. Diageo's value of 5.41 is 63.4% above this industry median. Based on the distribution chart, Diageo ranks #89 out of 213 companies in the Beverages - Alcoholic industry, which is above the industry midpoint. 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 FCF Yield % compare to BF.B?
According to the Beverages - Alcoholic industry distribution chart, Diageo ranks #89 out of 213 companies for FCF Yield %. This puts Diageo in the upper half of its industry. The industry median FCF Yield % is 3.31. Diageo's value of 5.41 is 63.4% above this benchmark. Historically, Diageo's own FCF Yield % has ranged from 1.94 to 6.38 over the past decade. While the company's 10-year median is 3.54 vs. the industry median of 3.31, 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 FCF Yield % for a Beverages - Alcoholic company?
The median FCF Yield % among Beverages - Alcoholic companies is 3.31, based on 213 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Diageo's current FCF Yield % of 5.41 is 63.4% 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 FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Diageo and its competitors. For the Beverages - Alcoholic industry, the median FCF Yield % is 3.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diageo's current FCF Yield % is 5.41, which is 53% above median its own 10-year median of 3.54. 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 €27.76, compared to a current price of €18.19 — trading 34.5% below its estimated fair value. The current FCF Yield % is 5.41, which is 53% above median its 10-year median of 3.54 and 63.4% above the Beverages - Alcoholic industry median of 3.31. 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 FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For Diageo (FRA:GUI), the current FCF Yield % is 5.41 as of Jun. 24, 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 €18.19 is trading 34.5% below its estimated GF Value™ of €27.76.
GuruFocus considers Diageo to be Significantly Undervalued.
Key valuation signals for FRA:GUI:
FCF Yield %: 5.41 (53% above median its 10-year median of 3.54)
GF Value™: €27.76 vs. price of €18.19 (34.5% below fair value)
Industry Position: 63.4% above the Beverages - Alcoholic median (#89 of 213)
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.
67GF Score
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