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Diageo PLC
LSE:DGE

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Diageo PLC
LSE:DGE
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Price: 1 463.4 GBX -0.38% Market Closed
Market Cap: £32.6B

EV/S

2.5
Current
31%
Cheaper
vs 3-y average of 3.6

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

EV/S
2.5
=
Enterprise Value
GBX54.4B
/
Revenue
£19.8B

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

EV/S
2.5
=
Enterprise Value
GBX54.4B
/
Revenue
£19.8B

Valuation Scenarios

Diageo PLC is trading below its 3-year average

If EV/S returns to its 3-Year Average (3.6), the stock would be worth GBX2 108.9 (44% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-100%
Maximum Upside
+71%
Average Downside
21%
Scenario EV/S Value Implied Price Upside/Downside
Current Multiple 2.5 GBX1 463.4
0%
3-Year Average 3.6 GBX2 108.9
+44%
5-Year Average 4.3 GBX2 496.71
+71%
Industry Average 0 GBX5.28
-100%
Country Average 0 GBX2.42
-100%

Forward EV/S
Today’s price vs future revenue

Today's Enterprise Value Revenue Forward EV/S
GBX54.4B
/
Jan 2026
£19.8B
=
2.5
Current
GBX54.4B
/
Jun 2026
£20.8B
=
2.6
Forward
GBX54.4B
/
Jun 2027
£20.8B
=
2.6
Forward
GBX54.4B
/
Jun 2028
£20.5B
=
2.7
Forward
GBX54.4B
/
Jun 2029
£21.8B
=
2.5
Forward
GBX54.4B
/
Jun 2030
£22.7B
=
2.4
Forward

Forward EV/S shows whether today’s EV/S still looks high or low once future revenue are taken into account.

Peer Comparison

All Multiples
EV/S
P/E
All Countries
Close

Market Distribution

Higher than 94% of companies in United Kingdom
Percentile
94th
Based on 1 990 companies
94th percentile
2.5
Low
0 — 0
Typical Range
0 — 0
High
0 —
Distribution Statistics
United Kingdom
Min 0
30th Percentile 0
Median 0
70th Percentile 0
Max 3 279.7

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 16%
Intrinsic Value
Price GBX1 463.4
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