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Diageo (Diageo) PB Ratio

: 8.02 (As of Today)
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The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. As of today (2024-04-18), Diageo's share price is $140.35. Diageo's Book Value per Share for the quarter that ended in Dec. 2023 was $17.51. Hence, Diageo's PB Ratio of today is 8.02.

Good Sign:

Diageo PLC stock PB Ratio (=7.94) is close to 3-year low of 7.8

The historical rank and industry rank for Diageo's PB Ratio or its related term are showing as below:

DEO' s PB Ratio Range Over the Past 10 Years
Min: 5.4   Med: 7.38   Max: 13.85
Current: 8.19

During the past 13 years, Diageo's highest PB Ratio was 13.85. The lowest was 5.40. And the median was 7.38.

DEO's PB Ratio is ranked worse than
91.22% of 205 companies
in the Beverages - Alcoholic industry
Industry Median: 1.8 vs DEO: 8.19

During the past 12 months, Diageo's average Book Value Per Share Growth Rate was -3.00% per year. During the past 3 years, the average Book Value Per Share Growth Rate was 6.90% per year. During the past 5 years, the average Book Value Per Share Growth Rate was -1.80% per year. During the past 10 years, the average Book Value Per Share Growth Rate was 1.40% per year.

During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Diageo was 20.90% per year. The lowest was -25.90% per year. And the median was 4.00% per year.

Back to Basics: PB Ratio


Diageo PB Ratio Historical Data

The historical data trend for Diageo's PB Ratio 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.

* Premium members only.

Diageo Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
PB Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.67 9.41 11.73 10.49 9.86

Diageo Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
PB Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.39 10.49 10.26 9.86 8.32

Competitive Comparison

For the Beverages - Wineries & Distilleries subindustry, Diageo's PB Ratio, along with its competitors' market caps and PB Ratio 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 PB Ratio Distribution

For the Beverages - Alcoholic industry and Consumer Defensive sector, Diageo's PB Ratio distribution charts can be found below:

* The bar in red indicates where Diageo's PB Ratio falls into.



Diageo PB Ratio Calculation

The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.

Diageo's PB Ratio for today is calculated as follows:

PB Ratio=Share Price/Book Value per Share (Q: Dec. 2023)
=140.35/17.505
=8.02

* 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.

It can also be calculated from the numbers for the whole company:

A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book and PB Ratio is that book value other than intangibles are used in the calculation.


Diageo  (NYSE:DEO) PB Ratio Explanation

Unlike valuation ratios relative to the earning power such as PE Ratio, PE Ratio without NRI, PS Ratio, Price-to-Operating-Cash-Flow , or Price-to-Free-Cash-Flow, the PB Ratio measures the valuation of the stock relative to the underlying asset of the company.

The PB Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.


Be Aware

Some businesses have very light assets, such as software companies or insurance agencies. The PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.


Diageo PB Ratio Related Terms

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Diageo (Diageo) Business Description

Address
16 Great Marlborough Street, London, GBR, W1F 7HS
The product of a merger between Grand Metropolitan and Guinness in 1997, Diageo is one of the world's leading producers of branded premium spirits, approximately level with Kweichow Moutai in revenue terms. It also produces and markets beer and wine. Brands include Johnnie Walker blended scotch, Smirnoff vodka, Crown Royal Canadian whiskey, Captain Morgan rum, Casamigos tequila, Tanqueray gin, Baileys Irish Cream, and Guinness stout. Diageo also owns 34% of premium champagne and cognac maker Moet Hennessy, a subsidiary of French luxury-goods maker LVMH Moet Hennessy-Louis Vuitton, and a near-56% stake in India's United Spirits.