DiageoHAM:GUI +0.27%67 Return-on-Tangible-Asset is 11.30% as of Dec. 2025, which is 21% below its 10-year median of 14.36. GuruFocus rates HAM:GUI with a GF Score™ of 67/100 and a GF Value™ of €27.88 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 214 Beverages - Alcoholic companies, Diageo ranks better than 69.63% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Diageo's annualizedNet Income for the quarter that ended in Dec. 2025 was €3,407 Mil. Diageo's average total tangible assets for the quarter that ended in Dec. 2025 was €30,167 Mil. Therefore, Diageo's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 was 11.30%.
The historical rank and industry rank for Diageo's Return-on-Tangible-Asset or its related term are showing as below:
HAM:GUI'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 6.86 Med: 14.36 Max: 17.79
Current: 6.96
During the past 13 years, Diageo's highest Return-on-Tangible-Asset was 17.79%. The lowest was 6.86%. And the median was 14.36%.
HAM:GUI's Return-on-Tangible-Asset is ranked better than 69.63% of 214
companies
in the Beverages - Alcoholic industry
Industry Median: 3.085
vs HAM:GUI: 6.96
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Diageo Return-on-Tangible-Asset Related Terms
Diageo Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Diageo's Return-on-Tangible-Asset 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.
HAM:GUI vs BF.B: Return-on-Tangible-Asset Comparison
For the Beverages - Wineries & Distilleries subindustry, Diageo's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Diageo's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Diageo's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Dec. 2025) net income data.
What does a Return-on-Tangible-Asset of 11.30% mean?
Diageo (HAM:GUI) has a Return-on-Tangible-Asset of 11.30% as of Dec. 2025. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Diageo and its competitors. This is 21% below median its historical median of 14.36. Over the past decade, Diageo's Return-on-Tangible-Asset has ranged from 6.86 to 17.79. According to the industry distribution chart, Diageo ranks #65 out of 214 companies in the Beverages - Alcoholic industry, placing it in the top 30.4%.
Is Diageo's Return-on-Tangible-Asset too high?
Diageo's current Return-on-Tangible-Asset of 11.30% is 21% below median its 10-year median of 14.36. Over the past 10 years, this metric has ranged from a low of 6.86 to a high of 17.79. The Beverages - Alcoholic industry median Return-on-Tangible-Asset is 3.09. Diageo's value of 11.30% is 266.3% above this industry median. Based on the distribution chart, Diageo ranks #65 out of 214 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 Return-on-Tangible-Asset compare to BF.B?
According to the Beverages - Alcoholic industry distribution chart, Diageo ranks #65 out of 214 companies for Return-on-Tangible-Asset. This puts Diageo in the upper half of its industry. The industry median Return-on-Tangible-Asset is 3.09. Diageo's value of 11.30% is 266.3% above this benchmark. Historically, Diageo's own Return-on-Tangible-Asset has ranged from 6.86 to 17.79 over the past decade. While the company's 10-year median is 14.36 vs. the industry median of 3.09, 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 Return-on-Tangible-Asset for a Beverages - Alcoholic company?
The median Return-on-Tangible-Asset among Beverages - Alcoholic companies is 3.09, based on 214 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Diageo's current Return-on-Tangible-Asset of 11.30% is 266.3% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Diageo and its competitors. For the Beverages - Alcoholic industry, the median Return-on-Tangible-Asset is 3.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diageo's current Return-on-Tangible-Asset is 11.30%, which is 21% below median its own 10-year median of 14.36. 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 (HAM:GUI) is currently considered Significantly Undervalued. The stock's GF Value™ is €27.88, compared to a current price of €18.27 — trading 34.5% below its estimated fair value. The current Return-on-Tangible-Asset is 11.30%, which is 21% below median its 10-year median of 14.36 and 266.3% above the Beverages - Alcoholic industry median of 3.09. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Diageo (HAM:GUI), the current Return-on-Tangible-Asset is 11.30% 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 (HAM:GUI) Overvalued in 2026?
Based on GuruFocus' analysis, Diageo stock appears to be undervalued.
The current stock price of €18.27 is trading 34.5% below its estimated GF Value™ of €27.88.
GuruFocus considers Diageo to be Significantly Undervalued.
Key valuation signals for HAM:GUI:
Return-on-Tangible-Asset: 11.30% (21% below median its 10-year median of 14.36)
GF Value™: €27.88 vs. price of €18.27 (34.5% below fair value)
Industry Position: 266.3% above the Beverages - Alcoholic median (#65 of 214)
No single metric tells the full story. See the HAM: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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