DiageoFRA:GUI +1.59%67 Net Margin % is 19.07% as of Dec. 2025, which is 10% below its 10-year median of 21.15. GuruFocus rates FRA:GUI with a GF Score™ of 67/100 and a GF Value™ of €27.69 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 212 Beverages - Alcoholic companies, Diageo ranks better than 77.83% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Diageo's Net Income for the
six
months ended in Dec. 2025 was €1,704 Mil. Diageo's Revenue for the
six
months ended in Dec. 2025 was €8,933 Mil. Therefore, Diageo's net margin for the quarter that ended in Dec. 2025 was 19.07%.
The historical rank and industry rank for Diageo's Net Margin % or its related term are showing as below:
FRA:GUI'
s Net Margin % Range Over the Past 10 Years
Min: 11.63 Med: 21.15 Max: 24.85
Current: 12.24
FRA:GUI's Net Margin % is ranked better than 77.83% of 212
companies
in the Beverages - Alcoholic industry
Industry Median: 4.87
vs FRA:GUI: 12.24
Diageo (FRA:GUI) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Diageo Net Margin % Related Terms
Diageo Net Margin % Historical Data
* Premium members only.
The historical data trend for Diageo's Net Margin % 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 Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Diageo's Net Margin % distribution charts can be found below:
* The bar in red indicates where Diageo's Net Margin % 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 Net Margin % of 19.07% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on Diageo and its competitors. This is 10% below median its historical median of 21.15. Over the past decade, Diageo's Net Margin % has ranged from 11.63 to 24.85. According to the industry distribution chart, Diageo ranks #47 out of 212 companies in the Beverages - Alcoholic industry, placing it in the top 22.2%.
Is Diageo's Net Margin % too high?
Diageo's current Net Margin % of 19.07% is 10% below median its 10-year median of 21.15. Over the past 10 years, this metric has ranged from a low of 11.63 to a high of 24.85. The Beverages - Alcoholic industry median Net Margin % is 4.87. Diageo's value of 19.07% is 291.6% above this industry median. Based on the distribution chart, Diageo ranks #47 out of 212 companies in the Beverages - Alcoholic industry, which is in the top quartile — a strong position 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 Net Margin % compare to BF.B?
According to the Beverages - Alcoholic industry distribution chart, Diageo ranks #47 out of 212 companies for Net Margin %. This places Diageo in the top 22% of its industry — outperforming the majority of peers. The industry median Net Margin % is 4.87. Diageo's value of 19.07% is 291.6% above this benchmark. Historically, Diageo's own Net Margin % has ranged from 11.63 to 24.85 over the past decade. While the company's 10-year median is 21.15 vs. the industry median of 4.87, 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 Net Margin % for a Beverages - Alcoholic company?
The median Net Margin % among Beverages - Alcoholic companies is 4.87, based on 212 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Diageo's current Net Margin % of 19.07% is 291.6% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Diageo and its competitors. For the Beverages - Alcoholic industry, the median Net Margin % is 4.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diageo's current Net Margin % is 19.07%, which is 10% below median its own 10-year median of 21.15. 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 €27.69, compared to a current price of €18.19 — trading 34.3% below its estimated fair value. The current Net Margin % is 19.07%, which is 10% below median its 10-year median of 21.15 and 291.6% above the Beverages - Alcoholic industry median of 4.87. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Diageo (FRA:GUI), the current Net Margin % is 19.07% 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 (FRA:GUI) Overvalued in 2026?
Based on GuruFocus' analysis, Diageo stock appears to be undervalued.
The current stock price of €18.19 is trading 34.3% below its estimated GF Value™ of €27.69.
GuruFocus considers Diageo to be Significantly Undervalued.
Key valuation signals for FRA:GUI:
Net Margin %: 19.07% (10% below median its 10-year median of 21.15)
GF Value™: €27.69 vs. price of €18.19 (34.3% below fair value)
Industry Position: 291.6% above the Beverages - Alcoholic median (#47 of 212)
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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