Latest Ratios: P/E Ratio 19.3x · EV/EBITDA 11.2x · ROE 18.6%. (1997–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $45.4B | $56.2B | $70.6B | $98.5B | $101.2B | $112.4B | $79.1B | $104.6B | $89.8B | $75.6B | $71.1B |
| Enterprise Value | $67.6B | $78.4B | $90.9B | $117.5B | $114.9B | $124.4B | $92.6B | $116.2B | $98.9B | $83.4B | $80.1B |
| P/E Ratio → | 19.26 | 23.78 | 18.22 | 22.13 | 25.76 | 42.41 | 45.40 | 33.14 | 29.75 | 28.26 | 31.71 |
| P/S Ratio | 2.24 | 2.77 | 3.48 | 4.79 | 6.55 | 8.83 | 6.73 | 8.13 | 7.39 | 6.27 | 6.78 |
| P/B Ratio | 3.45 | 4.26 | 5.85 | 8.41 | 10.64 | 13.33 | 9.37 | 10.30 | 7.67 | 6.28 | 6.98 |
| P/FCF | 16.91 | 20.92 | 15.49 | 22.76 | 35.66 | 37.11 | 48.82 | 40.59 | 35.93 | 28.91 | 34.80 |
| P/OCF | 10.56 | 13.07 | 11.64 | 17.15 | 25.72 | 30.75 | 34.09 | 32.20 | 29.13 | 24.13 | 27.89 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.87 | 4.49 | 5.71 | 7.44 | 9.77 | 7.88 | 9.03 | 8.13 | 6.92 | 7.64 |
| EV / EBITDA | 11.17 | 12.95 | 14.00 | 17.16 | 23.47 | 29.76 | 35.37 | 26.32 | 24.35 | 21.28 | 25.06 |
| EV / EBIT | 15.59 | 16.89 | 13.48 | 17.37 | 25.85 | 32.41 | 28.76 | 26.41 | 18.18 | 22.53 | 25.84 |
| EV / FCF | — | 29.19 | 19.97 | 27.15 | 40.50 | 41.07 | 57.13 | 45.10 | 39.54 | 31.92 | 39.23 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 60.1% | 60.1% | 60.2% | 59.7% | 61.3% | 60.4% | 60.4% | 62.2% | 61.9% | 61.2% | 59.5% |
| Operating Margin | 21.4% | 21.4% | 29.6% | 27.0% | 28.5% | 29.3% | 18.2% | 31.4% | 30.3% | 29.5% | 27.1% |
| Net Profit Margin | 11.6% | 11.6% | 19.1% | 21.6% | 25.5% | 20.9% | 14.8% | 24.6% | 24.8% | 22.1% | 21.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 18.6% | 18.6% | 32.5% | 41.9% | 43.9% | 31.5% | 18.7% | 28.9% | 25.5% | 24.0% | 23.1% |
| ROA | 5.0% | 5.0% | 8.6% | 10.9% | 11.5% | 8.2% | 5.4% | 10.4% | 10.3% | 9.3% | 8.3% |
| ROIC | 9.6% | 9.6% | 14.3% | 15.4% | 15.1% | 13.2% | 7.3% | 14.3% | 13.6% | 13.7% | 11.3% |
| ROCE | 11.7% | 11.7% | 16.9% | 17.5% | 16.7% | 14.5% | 8.4% | 17.0% | 16.2% | 16.0% | 13.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.85 | 1.85 | 1.78 | 1.78 | 1.68 | 1.75 | 1.99 | 1.24 | 0.85 | 0.75 | 0.99 |
| Debt / EBITDA | 4.03 | 4.03 | 3.31 | 3.04 | 3.27 | 3.52 | 6.41 | 2.84 | 2.44 | 2.31 | 3.17 |
| Net Debt / Equity | — | 1.68 | 1.69 | 1.62 | 1.44 | 1.42 | 1.60 | 1.14 | 0.77 | 0.65 | 0.89 |
| Net Debt / EBITDA | 3.67 | 3.67 | 3.14 | 2.77 | 2.80 | 2.87 | 5.14 | 2.63 | 2.22 | 2.00 | 2.83 |
| Debt / FCF | — | 8.27 | 4.47 | 4.39 | 4.84 | 3.96 | 8.31 | 4.51 | 3.61 | 3.00 | 4.43 |
| Interest Coverage | 4.19 | 4.19 | 4.67 | 4.95 | 6.97 | 7.52 | 3.23 | 7.99 | 9.02 | 7.75 | 6.04 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.63 | 1.63 | 1.53 | 1.63 | 1.53 | 1.60 | 1.77 | 1.34 | 1.37 | 1.30 | 1.43 |
| Quick Ratio | 0.64 | 0.64 | 0.55 | 0.62 | 0.69 | 0.76 | 0.88 | 0.56 | 0.58 | 0.58 | 0.69 |
| Cash Ratio | 0.25 | 0.25 | 0.11 | 0.19 | 0.30 | 0.40 | 0.52 | 0.15 | 0.14 | 0.19 | 0.26 |
| Asset Turnover | — | 0.41 | 0.45 | 0.46 | 0.42 | 0.40 | 0.35 | 0.41 | 0.41 | 0.42 | 0.37 |
| Inventory Turnover | 0.76 | 0.76 | 0.83 | 0.86 | 0.84 | 0.83 | 0.81 | 0.89 | 0.92 | 0.98 | 0.93 |
| Days Sales Outstanding | — | 56.41 | 68.27 | 66.04 | 65.95 | 80.10 | 67.36 | 84.84 | 94.04 | 73.70 | 93.50 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 5.1% | 4.1% | 3.2% | 2.1% | 2.1% | 1.5% | 2.1% | 1.6% | 1.8% | 2.0% | 2.0% |
| Payout Ratio | 97.6% | 97.6% | 57.9% | 46.5% | 52.9% | 61.9% | 94.9% | 51.4% | 52.3% | 56.9% | 64.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.2% | 4.2% | 5.5% | 4.5% | 3.9% | 2.4% | 2.2% | 3.0% | 3.4% | 3.5% | 3.2% |
| FCF Yield | 5.9% | 4.8% | 6.5% | 4.4% | 2.8% | 2.7% | 2.0% | 2.5% | 2.8% | 3.5% | 2.9% |
| Buyback Yield | 0.0% | 0.0% | 2.4% | 1.7% | 2.7% | 0.1% | 1.6% | 2.7% | 1.7% | 0.1% | 0.0% |
| Total Shareholder Yield | 5.1% | 4.1% | 5.5% | 3.8% | 4.8% | 1.6% | 3.7% | 4.2% | 3.4% | 2.1% | 2.0% |
| Shares Outstanding | — | $557M | $560M | $568M | $581M | $586M | $589M | $607M | $624M | $631M | $630M |
Distributor inventory channel imbalances
According to recent market data, Diageo's forward P/E of 17.12 suggests that investors are pricing in a period of sustained stagnation, as the current valuation multiple sits at a notable discount to historical averages, reflecting heightened skepticism regarding the company's near-term ability to reignite organic growth.
The current P/E multiple appears to reflect a market transition from valuing the company as a high-growth compounder to a defensive, low-growth asset. This valuation compression warrants investigation, as it suggests that the market is discounting the long-term premiumization strategy in favor of immediate concerns regarding regional demand volatility.
Based on reported figures, the company's ROIC has trended downward from 10.6% in 2023Q2 to 5.8% in 2026Q2, indicating that the firm is struggling to generate adequate returns on its invested capital base compared to its historical performance and broader industry benchmarks.
The decline in ROIC suggests that the capital-intensive nature of the spirits business is currently outpacing the company's ability to extract margin, likely exacerbated by the recent inventory build-ups. Investors should monitor whether this decay is a structural consequence of recent acquisitions or a temporary byproduct of the current cyclical downturn.
As reported in financial statements, the cash conversion cycle has expanded significantly to 476 days in 2026Q2, driven primarily by an elevated days inventory outstanding of 949 days, which highlights a substantial inefficiency in managing the aging process of spirits relative to current consumer demand.
The extreme length of the cash conversion cycle suggests that the company is carrying significant capital in the form of maturing stock that is not currently translating into rapid cash inflows. This inefficiency appears to be a structural risk, as the company must balance the necessity of long-term aging with the immediate need to optimize working capital.
Based on the provided quarterly data, the interest coverage ratio has compressed to 6.17 in 2026Q2, down from peaks exceeding 14.0, which indicates that the company's ability to service its debt obligations is becoming less comfortable in the current higher-interest-rate environment.
The elevated debt-to-EBITDA ratio of 6.61 suggests that the balance sheet is increasingly sensitive to operational shocks, particularly given the recent volatility in regional sales. This leverage profile may limit management's flexibility to pursue further M&A or aggressive capital returns until the debt burden is more effectively managed.
The P/E ratio is frequently misapplied to this business model because it fails to account for the massive, non-cash depreciation of maturing spirits inventory, which significantly distorts reported earnings and obscures the underlying cash-generating power of the company's core global brands.
Analysts should instead focus on EV/EBITDA or free cash flow yield, as these metrics better capture the company's ability to convert its massive inventory of aged spirits into actual liquidity. Relying on P/E ignores the accounting nuances of the spirits industry and may lead to an inaccurate assessment of the company's true valuation.
Includes 30+ ratios · 29 years · Updated daily
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Quick answers to the most common questions about buying DEO stock.
Diageo plc's current P/E ratio is 19.3x. The historical average is 31.2x. This places it at the 4th percentile of its historical range.
Diageo plc's current EV/EBITDA is 11.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 21.9x.
Diageo plc's return on equity (ROE) is 18.6%. The historical average is 28.1%.
Based on historical data, Diageo plc is trading at a P/E of 19.3x. This is at the 4th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Diageo plc's current dividend yield is 5.05% with a payout ratio of 97.6%.
Diageo plc has 60.1% gross margin and 21.4% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Diageo plc's Debt/EBITDA ratio is 4.0x, indicating high leverage. A ratio above 4x may signal elevated financial risk.