DiageoFRA:GUI +1.59%67 PEG Ratio is 3.46 as of Jun. 24, 2026, which is 19% below its 10-year median of 4.27. 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 88 Beverages - Alcoholic companies, Diageo ranks worse than 77.27% on this metric.
PE Ratio without NRI / 5-Year EBITDA Growth Rate*
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Diageo's PE Ratio without NRI is 13.13. Diageo's 5-Year EBITDA growth rate is 3.80%. Therefore, Diageo's PEG Ratio for today is 3.46.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Diageo's PEG Ratio or its related term are showing as below:
FRA:GUI'
s PEG Ratio Range Over the Past 10 Years
Min: 1.73 Med: 4.27 Max: 32.14
Current: 3.46
During the past 13 years, Diageo's highest PEG Ratio was 32.14. The lowest was 1.73. And the median was 4.27.
FRA:GUI's PEG Ratio is ranked worse than 77.27% of 88
companies
in the Beverages - Alcoholic industry
Industry Median: 1.855
vs FRA:GUI: 3.46
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Diageo (FRA:GUI) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Diageo PEG Ratio Related Terms
Diageo PEG Ratio Historical Data
* Premium members only.
The historical data trend for Diageo's PEG 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.
For the Beverages - Wineries & Distilleries subindustry, Diageo's PEG Ratio, along with its competitors' market caps and PEG 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 PEG Ratio vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Diageo's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Diageo's PEG Ratio 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Diageo (FRA:GUI) has a PEG Ratio of 3.46 as of Jun. 24, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Diageo and its competitors. This is 19% below median its historical median of 4.27. Over the past decade, Diageo's PEG Ratio has ranged from 1.73 to 32.14. According to the industry distribution chart, Diageo ranks #68 out of 88 companies in the Beverages - Alcoholic industry, placing it in the top 77.3%.
Is Diageo's PEG Ratio too high?
Diageo's current PEG Ratio of 3.46 is 19% below median its 10-year median of 4.27. Over the past 10 years, this metric has ranged from a low of 1.73 to a high of 32.14. The Beverages - Alcoholic industry median PEG Ratio is 1.86. Diageo's value of 3.46 is 86.5% above this industry median. Based on the distribution chart, Diageo ranks #68 out of 88 companies in the Beverages - Alcoholic industry, which is in the bottom quartile 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 PEG Ratio compare to BF.B?
According to the Beverages - Alcoholic industry distribution chart, Diageo ranks #68 out of 88 companies for PEG Ratio. This places Diageo in the lower half of its industry. The industry median PEG Ratio is 1.86. Diageo's value of 3.46 is 86.5% above this benchmark. Historically, Diageo's own PEG Ratio has ranged from 1.73 to 32.14 over the past decade. While the company's 10-year median is 4.27 vs. the industry median of 1.86, 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 PEG Ratio for a Beverages - Alcoholic company?
The median PEG Ratio among Beverages - Alcoholic companies is 1.86, based on 88 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Diageo's current PEG Ratio of 3.46 is 86.5% 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 PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Diageo and its competitors. For the Beverages - Alcoholic industry, the median PEG Ratio is 1.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diageo's current PEG Ratio is 3.46, which is 19% below median its own 10-year median of 4.27. 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 PEG Ratio is 3.46, which is 19% below median its 10-year median of 4.27 and 86.5% above the Beverages - Alcoholic industry median of 1.86. 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 PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For Diageo (FRA:GUI), the current PEG Ratio is 3.46 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:
PEG Ratio: 3.46 (19% below median its 10-year median of 4.27)
GF Value™: €27.76 vs. price of €18.19 (34.5% below fair value)
Industry Position: 86.5% above the Beverages - Alcoholic median (#68 of 88)
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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