Diageo (FRA:GUI) Risk Assessment


FRA:GUI Diageo PLC FRA:GUI
67 GF Score
Price €18.28
GF Value €27.90
Valuation Significantly Undervalued
! 5 Warning Signs
View Full Analysis

What is Diageo Risk Assessment?

Risk Assessment represents the investment risk of a stock derived from our exclusive method. It suggests how risky the investment opportunity is based on the valuation and the fundamental performance of the stock. It is derived from following key aspects:

1. GuruFocus internally developed valuations of the stock, such as GF valuation.
2. Quality Rank, a business quality indicator developed by GuruFocus.
3. Fundamental performance: Piotroski F-Score, Altman Z-Score, Beneish M-Score, etc.
4. Growth opportunities: 5-year revenue growth rate, 5-Year EPS without NRI Growth Rate, etc.

Value investors are always willing to find undervalued stocks. However, not all the undervalued stocks are good deals, we should also be careful of how risky the investment opportunity is. We believe that if the company's financial strength and profitability are strong, and the stock price is within a reasonable range of the GF valuation, or stock has a high return with its price being undervalued, then it might be a good investment opportunity with low risk.

Based on those aspects listed above, GuruFocus believes the risk assessment of Diageo is: Low Risk: Strong fundamentals, worth long-term holding.

Diageo  (FRA:GUI) Risk Assessment Explanation

Based on the four aspects listed above, GuruFocus provides the following 7 evaluations:

All-in-One Screener Examples (1)
Low Risk: Strong fundamentals, worth long-term holding
Moderate Risk: Sensitive, better choose undervalued stock
High Risk: High uncertainty with risk-return tradeoff
High Risk: Good fundamentals, beware of shrinking business
High Risk: Sensitive to economic or industry trends
High Risk: High uncertainty
No Data: Cannot be evaluated

(1) These are some simple examples. You can access our Risk Assessment filter under All-in-One Screener’s Fundamental tab and set your own criteria.

Diageo Risk Assessment Related Terms

FRA:GUI vs BF.B: Risk Assessment Comparison

For the Beverages - Wineries & Distilleries subindustry, Diageo's Risk Assessment, along with its competitors' market caps and Risk Assessment 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 Risk Assessment vs Beverages - Alcoholic Industry

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

* The bar in red indicates where Diageo's Risk Assessment falls into.


FRA:GUI
67GF Score
Diageo PLC FRA:GUI
Risk Assessment is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Is Diageo (FRA:GUI) Overvalued in 2026?

Based on GuruFocus' analysis, Diageo stock appears to be undervalued. The current stock price of €18.28 is trading 34.5% below its estimated GF Value™ of €27.90. GuruFocus considers Diageo to be Significantly Undervalued.

Key valuation signals for FRA:GUI:

  • Risk Assessment:
  • GF Value™: €27.90 vs. price of €18.28 (34.5% below fair value)
  • GF Score™: 67/100 with 5 warning signs

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.

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.
67GF Score

Get the complete analysis for FRA:GUI

Risk Assessment is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€18.28
Price
€27.90
GF Value