DGEAF (Diageo) ROCE %: 17.37% (As of Dec. 2025)


DGEAF Diageo PLC DGEAF
71 GF Score
Price $21.01
GF Value $31.99
Valuation Significantly Undervalued
! 5 Warning Signs
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What is Diageo ROCE %?

Diageo DGEAF 71 ROCE % is 17.37% as of Dec. 2025. 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Diageo's annualized ROCE % for the quarter that ended in Dec. 2025 was 17.37%.

Diageo  (OTCPK:DGEAF) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Diageo ROCE % Related Terms

Diageo ROCE % Historical Data

* Premium members only.

The historical data trend for Diageo's ROCE % 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.

Diageo ROCE % Chart

Diageo Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.27 20.57 19.04 18.60 12.51

Diageo Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
ROCE % 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 20.52 16.34 18.57 6.89 17.37
DGEAF
71GF Score
Diageo PLC DGEAF
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Diageo ROCE % Calculation

Diageo's annualized ROCE % for the fiscal year that ended in Jun. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Jun. 2025 )  (A: Jun. 2024 )(A: Jun. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Jun. 2025 )  (A: Jun. 2024 )(A: Jun. 2025 )
=4641/( ( (45474 - 9868) + (49322 - 10712) )/ 2 )
=4641/( (35606+38610)/ 2 )
=4641/37108
=12.51 %

Diageo's ROCE % of for the quarter that ended in Dec. 2025 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=6696/( ( (49322 - 10712) + (50272 - 11776) )/ 2 )
=6696/( ( 38610 + 38496 )/ 2 )
=6696/38553
=17.37 %

(1) 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 17.37% mean?
Diageo (DGEAF) has a ROCE % of 17.37% as of Dec. 2025.
Is Diageo's ROCE % too high?
Diageo's current ROCE % is 17.37%. The Beverages - Alcoholic industry median ROCE % is 7.68. Diageo's value of 17.37% is 126.3% above this industry median. 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 ROCE % compare to BF.B?
Diageo's ROCE % of 17.37% can be compared against companies in the Beverages - Alcoholic industry. The industry median ROCE % is 7.68. Diageo's value of 17.37% is 126.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Beverages - Alcoholic company?
The median ROCE % among Beverages - Alcoholic companies is 7.68, based on 208 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Diageo's current ROCE % of 17.37% is 126.3% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Beverages - Alcoholic industry, the median ROCE % is 7.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diageo's current ROCE % is 17.37%. 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 ROCE % is 17.37% and 126.3% above the Beverages - Alcoholic industry median of 7.68. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Diageo (DGEAF), the current ROCE % is 17.37% 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:

  • ROCE %: 17.37%
  • GF Value™: $31.99 vs. price of $21.01 (34.3% below fair value)
  • GF Score™: 71/100 with 5 warning signs
  • Industry Position: 126.3% above the Beverages - Alcoholic median

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.

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.
71GF Score

Get the complete analysis for DGEAF

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

$21.01
Price
$31.99
GF Value