DiageoHAM:GUI -0.25%67 ROC (Joel Greenblatt) % is 39.87% as of Dec. 2025, which is 23% below its 10-year median of 51.72. GuruFocus rates HAM:GUI with a GF Score™ of 67/100 and a GF Value™ of €28.06 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 212 Beverages - Alcoholic companies, Diageo ranks better than 74.53% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Diageo's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 39.87%.
The historical rank and industry rank for Diageo's ROC (Joel Greenblatt) % or its related term are showing as below:
HAM:GUI'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 28.11 Med: 51.72 Max: 66.5
Current: 28.11
During the past 13 years, Diageo's highest ROC (Joel Greenblatt) % was 66.50%. The lowest was 28.11%. And the median was 51.72%.
HAM:GUI's ROC (Joel Greenblatt) % is ranked better than 74.53% of 212
companies
in the Beverages - Alcoholic industry
Industry Median: 11.955
vs HAM:GUI: 28.11
Diageo's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -3.40% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
The historical data trend for Diageo's ROC (Joel Greenblatt) % 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: ROC (Joel Greenblatt) % Comparison
For the Beverages - Wineries & Distilleries subindustry, Diageo's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Diageo's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Diageo's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT 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.
What does a ROC (Joel Greenblatt) % of 39.87% mean?
Diageo (HAM:GUI) has a ROC (Joel Greenblatt) % of 39.87% as of Dec. 2025. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Diageo and its competitors. This is 23% below median its historical median of 51.72. Over the past decade, Diageo's ROC (Joel Greenblatt) % has ranged from 28.11 to 66.50. According to the industry distribution chart, Diageo ranks #54 out of 212 companies in the Beverages - Alcoholic industry, placing it in the top 25.5%.
Is Diageo's ROC (Joel Greenblatt) % too high?
Diageo's current ROC (Joel Greenblatt) % of 39.87% is 23% below median its 10-year median of 51.72. Over the past 10 years, this metric has ranged from a low of 28.11 to a high of 66.50. The Beverages - Alcoholic industry median ROC (Joel Greenblatt) % is 11.96. Diageo's value of 39.87% is 233.5% above this industry median. Based on the distribution chart, Diageo ranks #54 out of 212 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 ROC (Joel Greenblatt) % compare to BF.B?
According to the Beverages - Alcoholic industry distribution chart, Diageo ranks #54 out of 212 companies for ROC (Joel Greenblatt) %. This puts Diageo in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 11.96. Diageo's value of 39.87% is 233.5% above this benchmark. Historically, Diageo's own ROC (Joel Greenblatt) % has ranged from 28.11 to 66.50 over the past decade. While the company's 10-year median is 51.72 vs. the industry median of 11.96, 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 ROC (Joel Greenblatt) % for a Beverages - Alcoholic company?
The median ROC (Joel Greenblatt) % among Beverages - Alcoholic companies is 11.96, based on 212 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Diageo's current ROC (Joel Greenblatt) % of 39.87% is 233.5% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Diageo and its competitors. For the Beverages - Alcoholic industry, the median ROC (Joel Greenblatt) % is 11.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diageo's current ROC (Joel Greenblatt) % is 39.87%, which is 23% below median its own 10-year median of 51.72. 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 €28.06, compared to a current price of €18.22 — trading 35.1% below its estimated fair value. The current ROC (Joel Greenblatt) % is 39.87%, which is 23% below median its 10-year median of 51.72 and 233.5% above the Beverages - Alcoholic industry median of 11.96. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Diageo (HAM:GUI), the current ROC (Joel Greenblatt) % is 39.87% 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 €18.22 is trading 35.1% below its estimated GF Value™ of €28.06.
GuruFocus considers Diageo to be Significantly Undervalued.
Key valuation signals for HAM:GUI:
ROC (Joel Greenblatt) %: 39.87% (23% below median its 10-year median of 51.72)
GF Value™: €28.06 vs. price of €18.22 (35.1% below fair value)
Industry Position: 233.5% above the Beverages - Alcoholic median (#54 of 212)
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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