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Diageo PLC
LSE:DGE

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Diageo PLC
LSE:DGE
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Price: 1 444.6 GBX -1.37% Market Closed
Market Cap: £32.2B

EV/GP

4.2
Current
30%
Cheaper
vs 3-y average of 6

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
4.2
=
Enterprise Value
GBX54.4B
/
Gross Profit
£11.8B

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
4.2
=
Enterprise Value
GBX54.4B
/
Gross Profit
£11.8B

Valuation Scenarios

Diageo PLC is trading below its 3-year average

If EV/GP returns to its 3-Year Average (6), the stock would be worth GBX2 072.9 (43% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-100%
Maximum Upside
+72%
Average Downside
21%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 4.2 GBX1 444.6
0%
3-Year Average 6 GBX2 072.9
+43%
5-Year Average 7.2 GBX2 483.03
+72%
Industry Average 0 GBX5.22
-100%
Country Average 0 GBX3.24
-100%

Forward EV/GP
Today’s price vs future gross profit

Not enough data available to calculate forward EV/GP

Peer Comparison

All Multiples
EV/GP
P/E
All Countries
Close

Market Distribution

Higher than 93% of companies in United Kingdom
Percentile
93rd
Based on 1 558 companies
93rd percentile
4.2
Low
0 — 0
Typical Range
0 — 0
High
0 —
Distribution Statistics
United Kingdom
Min 0
30th Percentile 0
Median 0
70th Percentile 0
Max 664.3

Diageo PLC
Glance View

Diageo PLC stands as a titan in the global beverage alcohol industry, tracing its lineage back to a series of historic mergers that fused the worlds of Guinness and distillery heavyweights. Headquartered in London, this British multinational has deftly expanded its portfolio to encompass a wide array of spirits, beer, and wine, securing ownership of some of the most recognizable brands worldwide, such as Johnnie Walker, Smirnoff, and Guinness. The company's story is one of strategic acquisitions and brand growth, carefully cultivating a diverse array of high-quality offerings that cater to varied consumer tastes and preferences across the globe. The core of Diageo's business model turns on its ability to transform agricultural raw materials into premium finished products that are marketed and distributed through an extensive network. This structure, paired with a keen understanding of regional market dynamics, enables Diageo to tap into different price points and consumer trends, thus ensuring a steady flow of revenue. By investing heavily in brand strength and consumer engagement, Diageo not only maintains but enhances its market position, deftly navigating the complexities of the global marketplace while continuously innovating within its product lines to sustain interest and relevance among a dynamic audience.

DGE Intrinsic Value
1 733.34 GBX
Undervaluation 17%
Intrinsic Value
Price GBX1 444.6
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