DiageoDGEAF 71 ROA % is 8.01% as of Dec. 2025, which is 12% below its 10-year median of 9.09. GuruFocus rates DGEAF with a GF Score™ of 71/100 and a GF Value™ of $31.99 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 214 Beverages - Alcoholic companies, Diageo ranks better than 65.42% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Diageo's annualizedNet Income for the quarter that ended in Dec. 2025 was $3,990 Mil.
Diageo's average Total Assets over the quarter that ended in Dec. 2025 was $49,797 Mil. Therefore, Diageo's annualized ROA % for the quarter that ended in Dec. 2025 was 8.01%.
The historical rank and industry rank for Diageo's ROA % or its related term are showing as below:
DGEAF'
s ROA % Range Over the Past 10 Years
Min: 4.33 Med: 9.09 Max: 10.44
Current: 4.86
During the past 13 years, Diageo's highest ROA % was 10.44%. The lowest was 4.33%. And the median was 9.09%.
DGEAF's ROA % is ranked better than 65.42% of 214
companies
in the Beverages - Alcoholic industry
Industry Median: 2.94
vs DGEAF: 4.86
Diageo (OTCPK:DGEAF) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Diageo ROA % Related Terms
Diageo ROA % Historical Data
* Premium members only.
The historical data trend for Diageo's ROA % 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 ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Diageo's ROA % distribution charts can be found below:
* The bar in red indicates where Diageo's ROA % 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 ROA %, the net income of the last fiscal year and the average total 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.
ROA % is displayed in the 30-year financial page.
Diageo (DGEAF) has a ROA % of 8.01% as of Dec. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Diageo and its competitors. This is 12% below median its historical median of 9.09. Over the past decade, Diageo's ROA % has ranged from 4.33 to 10.44. According to the industry distribution chart, Diageo ranks #74 out of 214 companies in the Beverages - Alcoholic industry, placing it in the top 34.6%.
Is Diageo's ROA % too high?
Diageo's current ROA % of 8.01% is 12% below median its 10-year median of 9.09. Over the past 10 years, this metric has ranged from a low of 4.33 to a high of 10.44. The Beverages - Alcoholic industry median ROA % is 2.94. Diageo's value of 8.01% is 172.4% above this industry median. Based on the distribution chart, Diageo ranks #74 out of 214 companies in the Beverages - Alcoholic industry, which is above the industry midpoint. Overall, Diageo has a GF Score™ of 71/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Diageo's ROA % compare to BF.B?
According to the Beverages - Alcoholic industry distribution chart, Diageo ranks #74 out of 214 companies for ROA %. This puts Diageo in the upper half of its industry. The industry median ROA % is 2.94. Diageo's value of 8.01% is 172.4% above this benchmark. Historically, Diageo's own ROA % has ranged from 4.33 to 10.44 over the past decade. While the company's 10-year median is 9.09 vs. the industry median of 2.94, 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 ROA % for a Beverages - Alcoholic company?
The median ROA % among Beverages - Alcoholic companies is 2.94, based on 214 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Diageo's current ROA % of 8.01% is 172.4% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Diageo and its competitors. For the Beverages - Alcoholic industry, the median ROA % is 2.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diageo's current ROA % is 8.01%, which is 12% below median its own 10-year median of 9.09. 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 (DGEAF) is currently considered Significantly Undervalued. The stock's GF Value™ is $31.99, compared to a current price of $21.01 — trading 34.3% below its estimated fair value. The current ROA % is 8.01%, which is 12% below median its 10-year median of 9.09 and 172.4% above the Beverages - Alcoholic industry median of 2.94. Diageo's overall GF Score™ is 71/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Diageo (DGEAF), the current ROA % is 8.01% 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 (DGEAF) Overvalued in 2026?
Based on GuruFocus' analysis, Diageo stock appears to be undervalued.
The current stock price of $21.01 is trading 34.3% below its estimated GF Value™ of $31.99.
GuruFocus considers Diageo to be Significantly Undervalued.
Key valuation signals for DGEAF:
ROA %: 8.01% (12% below median its 10-year median of 9.09)
GF Value™: $31.99 vs. price of $21.01 (34.3% below fair value)
Industry Position: 172.4% above the Beverages - Alcoholic median (#74 of 214)
No single metric tells the full story. See the DGEAF 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.
71GF Score
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