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Diageo (BUE:DEO) PS Ratio : 0.51 (As of Dec. 12, 2024)


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What is Diageo PS Ratio?

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Diageo's share price is ARS22625.00. Diageo's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2024 was ARS43,974.98. Hence, Diageo's PS Ratio for today is 0.51.

Good Sign:

Diageo PLC stock PS Ratio (=3.5) is close to 10-year low of 3.26

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

BUE:DEO' s PS Ratio Range Over the Past 10 Years
Min: 3.26   Med: 5.3   Max: 7.53
Current: 3.49

During the past 13 years, Diageo's highest PS Ratio was 7.53. The lowest was 3.26. And the median was 5.30.

BUE:DEO's PS Ratio is ranked worse than
71.9% of 210 companies
in the Beverages - Alcoholic industry
Industry Median: 1.9 vs BUE:DEO: 3.49

Diageo's Revenue per Sharefor the six months ended in Jun. 2024 was ARS29,885.86. Its Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2024 was ARS43,974.98.

Warning Sign:

Diageo PLC revenue growth has slowed down over the past 12 months.

During the past 12 months, the average Revenue per Share Growth Rate of Diageo was -0.70% per year. During the past 3 years, the average Revenue per Share Growth Rate was 9.90% per year. During the past 5 years, the average Revenue per Share Growth Rate was 8.60% per year. During the past 10 years, the average Revenue per Share Growth Rate was 6.40% per year.

During the past 13 years, Diageo's highest 3-Year average Revenue per Share Growth Rate was 16.40% per year. The lowest was -16.90% per year. And the median was 4.50% per year.

Back to Basics: PS Ratio


Diageo PS Ratio Historical Data

The historical data trend for Diageo's PS 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 PS Ratio Chart

Diageo Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.46 6.46 4.93 4.71 3.50

Diageo Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
PS Ratio Get a 7-Day Free Trial 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 4.93 - 4.71 - 3.50

Competitive Comparison of Diageo's PS Ratio

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

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

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



Diageo PS Ratio Calculation

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.

Diageo's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=22625.00/43974.979
=0.51

Diageo's Share Price of today is ARS22625.00.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Diageo's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2024 was ARS43,974.98.

* 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:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


Diageo  (BUE:DEO) PS Ratio Explanation

The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.

When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.


Diageo PS Ratio Related Terms

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Diageo Business Description

Address
16 Great Marlborough Street, London, GBR, W1F 7HS
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. The firm has also shed noncore brands over the years, including the majority of its wine assets in 2015.