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Diageo plcLSE:DGE Stock Report

Market Cap UK£33.2b
Share Price
UK£14.95
UK£19.81
24.5% undervalued intrinsic discount
1Y-22.7%
7D-2.6%
1D
Portfolio Value
View

Diageo plc

LSE:DGE Stock Report

Market Cap: UK£33.2b

Diageo (DGE) Stock Overview

Engages in the production, marketing, and distribution of alcoholic beverages in North America, Europe, the Asia Pacific, Latin America and Caribbean, and Africa. More details

DGE fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance0/6
Financial Health3/6
Dividends3/6

DGE Community Fair Values

Create Narrative

See what 242 others think this stock is worth. Follow their fair value or set your own to get alerts.

Diageo plc Competitors

Price History & Performance

Summary of share price highs, lows and changes for Diageo
Historical stock prices
Current Share PriceUK£14.95
52 Week HighUK£21.42
52 Week LowUK£13.50
Beta0.30
1 Month Change-4.70%
3 Month Change-2.00%
1 Year Change-22.66%
3 Year Change-54.98%
5 Year Change-56.46%
Change since IPO3,185.71%

Recent News & Updates

Narrative Update Jun 03

DGE: Margin Resilience And Overhaul Execution Will Support Future Share Rebound

Analysts have trimmed their Diageo price target slightly to £24.27 from £24.38, reflecting updated assumptions that combine more cautious revenue growth and a higher discount rate with somewhat stronger profit margin expectations and a modestly lower future P/E multiple. Analyst Commentary While the recent trim to the Diageo price target is modest, it still reflects a generally supportive stance from bullish analysts who see room for the company to execute on profitability and maintain a premium valuation within its sector.
Narrative Update Apr 30

DGE: Incremental Margin Assumptions And Execution Risks Will Shape Future Multiple

Analysts have nudged their fair value estimate for Diageo higher, reflected in a slightly increased price target of about £14.60 from roughly £14.50, citing modestly improved revenue and profit margin assumptions while keeping the discount rate and future P/E broadly unchanged. Analyst Commentary Recent commentary around Diageo's fair value has been fairly balanced, with only a modest uplift to the price target and no change to key valuation inputs such as the discount rate or long term P/E assumptions.
Narrative Update Apr 16

DGE: Tighter Execution Risks And Cautious Sector Tone Will Restrain Future Multiple

Narrative Update on Diageo The analyst price target for Diageo has been reduced by about £0.20. Analysts have attributed this change to slightly lower revenue assumptions, along with a small improvement in margin and future P/E expectations that together support the revised valuation.
Narrative Update Apr 02

DGE: Margin Resilience And Portfolio Breadth Will Support Future Share Rebound

Analysts have trimmed their implied fair value estimate for Diageo to about £24.38 from roughly £26.55. This reflects a slightly higher discount rate, more moderate revenue growth assumptions and a lower future P/E multiple, even as margin expectations are a touch stronger.

Recent updates

Narrative Update Jun 03

DGE: Margin Resilience And Overhaul Execution Will Support Future Share Rebound

Analysts have trimmed their Diageo price target slightly to £24.27 from £24.38, reflecting updated assumptions that combine more cautious revenue growth and a higher discount rate with somewhat stronger profit margin expectations and a modestly lower future P/E multiple. Analyst Commentary While the recent trim to the Diageo price target is modest, it still reflects a generally supportive stance from bullish analysts who see room for the company to execute on profitability and maintain a premium valuation within its sector.
Narrative Update Apr 30

DGE: Incremental Margin Assumptions And Execution Risks Will Shape Future Multiple

Analysts have nudged their fair value estimate for Diageo higher, reflected in a slightly increased price target of about £14.60 from roughly £14.50, citing modestly improved revenue and profit margin assumptions while keeping the discount rate and future P/E broadly unchanged. Analyst Commentary Recent commentary around Diageo's fair value has been fairly balanced, with only a modest uplift to the price target and no change to key valuation inputs such as the discount rate or long term P/E assumptions.
Narrative Update Apr 16

DGE: Tighter Execution Risks And Cautious Sector Tone Will Restrain Future Multiple

Narrative Update on Diageo The analyst price target for Diageo has been reduced by about £0.20. Analysts have attributed this change to slightly lower revenue assumptions, along with a small improvement in margin and future P/E expectations that together support the revised valuation.
Narrative Update Apr 02

DGE: Margin Resilience And Portfolio Breadth Will Support Future Share Rebound

Analysts have trimmed their implied fair value estimate for Diageo to about £24.38 from roughly £26.55. This reflects a slightly higher discount rate, more moderate revenue growth assumptions and a lower future P/E multiple, even as margin expectations are a touch stronger.
Narrative Update Mar 18

DGE: Margin Discipline And Portfolio Actions Will Support Future Cash Generation

Analysts have reduced their fair value estimate for Diageo to about £19.81 per share from roughly £20.01. This change reflects slightly softer revenue growth assumptions and a modestly lower future P/E multiple, partly offset by a small improvement in expected profit margins.
Narrative Update Mar 04

DGE: Margin Discipline And Portfolio Moves Will Support Long Term Cash Generation

Analysts have trimmed their fair value estimate for Diageo from about £20.57 to £20.01, reflecting a slightly higher discount rate and lower assumed future P/E, even as they factor in updated views on revenue growth and margins. Analyst Commentary Recent commentary on valuation and execution themes across consumer names gives useful context for how analysts might be thinking about Diageo, even when the research is focused on other companies.
Narrative Update Feb 18

DGE: Higher Risk Perception Will Cap Multiple Despite Slightly Firmer Earnings Assumptions

Analysts have lifted their implied price target for Diageo by £0.34 per share, reflecting slightly higher fair value estimates, supported by marginally firmer revenue and profit margin assumptions, alongside a modestly higher future P/E multiple. Analyst Commentary While the latest fair value work on Diageo points to a slightly higher implied price target, bearish analysts in other consumer names are still flagging some caution that can inform how you think about risk here.
Narrative Update Feb 04

DGE: Premium Portfolio And Cost Discipline Will Benefit From Expected Consumer Tailwinds

Narrative Update on Diageo Analysts have trimmed their Diageo fair value estimate slightly, by about $0.23 to $20.57, reflecting more muted assumptions for revenue growth and profit margins, partly offset by a modestly higher future P/E multiple. Analyst Commentary Recent Street research around consumer and value-focused retailers gives some context for how analysts are thinking about companies with everyday spending exposure, which can be useful when you think about Diageo.
Narrative Update Jan 21

DGE: Weaker Premium Demand And Higher Risk Perception Will Pressure Shares

Narrative Update on Diageo Analysts have trimmed their Diageo fair value estimate from about $18.00 to roughly $14.36, pointing to softer revenue growth assumptions, a slightly higher discount rate, and a lower future P/E multiple, partially balanced by a modestly higher profit margin outlook. Analyst Commentary Recent analyst work around consumer staples and value-focused retailers gives some context for how investors may be thinking about Diageo.
Narrative Update Jan 07

DGE: Premium Portfolio And Cost Discipline Will Offset SNAP Benefits Pressure

Analysts have trimmed their fair value estimate for Diageo from $21.57 to $20.80, citing slightly softer long term assumptions for revenue growth and profit margins as consumer staples face pressure from reduced SNAP benefits and weaker lower income confidence. Analyst Commentary Analysts are incorporating the reduction in Supplemental Nutrition Assistance Program benefits into their thinking on Diageo, as pressure on lower income consumers feeds into expectations for the broader staples group.
Narrative Update Dec 18

DGE: Premium Positioning Will Cushion SNAP Headwinds And Support Share Rebound

Analysts have modestly trimmed their fair value estimate for Diageo by about $0.47 per share, citing higher perceived risk to consumer staples demand and slightly softer long term growth and margin assumptions. Analyst Commentary Bullish analysts acknowledge that reduced SNAP benefits and temporary payment disruptions create a near term headwind for staples demand, but they largely view the impact on Diageo as manageable given its premium positioning and global diversification.
Narrative Update Dec 03

DGE: Premium Portfolio And Cost Discipline Will Support Earnings Despite SNAP Headwinds

Analysts have modestly reduced their price target on Diageo by approximately $0.48 per share. This reflects slightly softer top-line growth assumptions, partially offset by a marginally improved long term profit margin outlook and a still-supportive valuation multiple.
Narrative Update Nov 19

DGE: Operational Progress Will Drive Long-Term Earnings Stability Despite SNAP Headwinds

Diageo's fair value price target has been lowered from $23.48 to $22.05, as analysts cite softer revenue growth forecasts and rising discount rates, which are impacting future profit expectations. Analyst Commentary Recent analyst research highlights both opportunities and challenges impacting Diageo's valuation and sector performance.
Narrative Update Nov 04

DGE: Persistent Retail Demand Will Offset SNAP Headwinds Moving Forward

Diageo's analyst price target has edged down slightly from $23.55 to $23.48, as analysts cite softer revenue growth assumptions and modestly lower profit margin expectations due to persistent retail sector headwinds. Analyst Commentary Recent street research highlights a blend of optimism and caution among analysts regarding Diageo and related retail and staples sector names.
Narrative Update Oct 10

Global Premium Spirits Expansion Will Reshape Beverage Industry

Diageo's analyst price target has increased modestly, rising from $23.25 to $23.55. Analysts point to a steady operational outlook and stable valuation metrics in their latest updates.
Narrative Update Sep 18

Global Premium Spirits Expansion Will Reshape Beverage Industry

Diageo's consensus price target has held steady despite a significant contraction in its future P/E multiple and a slight decrease in revenue growth forecasts, resulting in only a marginal reduction in fair value from £23.54 to £23.25. What's in the News Johnnie Walker unveiled a limited edition Blue Label design for the Indian festive season, collaborating with designer Rahul Mishra, available globally and featured in international festive celebrations.
Narrative Update Sep 03

Global Premium Spirits Expansion Will Reshape Beverage Industry

Diageo’s future P/E multiple has materially declined from 19.89x to 14.90x, indicating a notable improvement in valuation against steady revenue growth expectations, resulting in a marginal analyst price target increase from £23.29 to £23.54. What's in the News Diageo will close its Amherstburg, Ontario bottling facility by February 2026 as part of a supply chain optimization effort; Crown Royal production in Canada remains unaffected, with bottling shifting closer to U.S. consumers.
Analysis Article Jul 04

Here's What To Make Of Diageo's (LON:DGE) Decelerating Rates Of Return

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Amongst other...
Analysis Article Jun 16

Diageo plc's (LON:DGE) Business Is Yet to Catch Up With Its Share Price

It's not a stretch to say that Diageo plc's ( LON:DGE ) price-to-earnings (or "P/E") ratio of 16.4x right now seems...
User avatar
New Narrative Feb 06

Guinness And Johnnie Walker To Lead Global Market Expansion

Strong brand performance and innovation, especially in the U.S., are driving Diageo's revenue and margin enhancement across key markets.

Shareholder Returns

DGEGB BeverageGB Market
7D-2.6%-1.6%-0.7%
1Y-22.7%-14.8%16.7%

Return vs Industry: DGE underperformed the UK Beverage industry which returned -14.8% over the past year.

Return vs Market: DGE underperformed the UK Market which returned 16.7% over the past year.

Price Volatility

Is DGE's price volatile compared to industry and market?
DGE volatility
DGE Average Weekly Movement3.9%
Beverage Industry Average Movement3.7%
Market Average Movement5.6%
10% most volatile stocks in GB Market11.7%
10% least volatile stocks in GB Market3.2%

Stable Share Price: DGE has not had significant price volatility in the past 3 months compared to the UK market.

Volatility Over Time: DGE's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
188629,632Dave Lewiswww.diageo.com

Diageo plc, together with its subsidiaries, engages in the production, marketing, and distribution of alcoholic beverages in North America, Europe, the Asia Pacific, Latin America and Caribbean, and Africa. It offers beer, scotch, gin, vodka, rum, liqueur, raki, wine, Irish and Canadian whisky, US and Indian whisky, Chinese whisky, cachaça, tequila, brandy, and Chinese white spirit beverages. The company also provides ready-to-drink and non-alcoholic beverages.

Diageo plc Fundamentals Summary

How do Diageo's earnings and revenue compare to its market cap?
DGE fundamental statistics
Market capUK£33.24b
Earnings (TTM)UK£1.81b
Revenue (TTM)UK£14.85b
18.4x
P/E Ratio
2.2x
P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
DGE income statement (TTM)
RevenueUS$19.80b
Cost of RevenueUS$7.92b
Gross ProfitUS$11.88b
Other ExpensesUS$9.47b
EarningsUS$2.41b

Last Reported Earnings

Dec 31, 2025

Next Earnings Date

Aug 06, 2026

Earnings per share (EPS)1.09
Gross Margin60.00%
Net Profit Margin12.19%
Debt/Equity Ratio172.4%

How did DGE perform over the long term?

See historical performance and comparison

Dividends

4.2%
Current Dividend Yield
76%
Payout Ratio

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/06/05 10:17
End of Day Share Price 2026/06/05 00:00
Earnings2025/12/31
Annual Earnings2025/06/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Diageo plc is covered by 47 analysts. 20 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
John StaszakArgus Research Company
Barry CoppelBanco Santander
Alexandra OldroydBarclays