Diageo plcStock Price and Value Analysis

Should you buy Diageo plc stock? (NYSE:DEO). Let's see how it does in our automated value investing analysis system.

AdvantagesDisadvantages
  • This company has amazingly consistent growth!
  • This company has a high dividend yield.
  • This stock looks overpriced.
  • This company is making money at a modest rate.
  • This company is less known than others.

DEO Free Cash Flow Trend

Based on historical returns, we believe that Diageo plc can grow its free cash at a rate of about 4%. That's positive!

Free Cash Flow trendline for DEO
Free Cash Flow trendline for Diageo plc

Inside the DEO Numbers

DEO Price
(Diageo plc stock price per share)
$141.82
[?] DEO Fair Price
(based on intrinsic value)
$15.33
[?] DEO Safety Price (based on a variable margin of safety) $9.20
[?] PE Ratio versus Sector 80% higher than other Consumer Goods stocks
[?] PE Ratio versus Industry 39% higher than other Beverages - Wineries & Distillers stocks
[?] Cash Yield 4.35%
[?] Free Cash Flow Jitter 9%
[?] Dividend Yield 3%

Is Diageo plc Stock on Sale?

We believe that Diageo plc may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Diageo plc looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy DEO Stock?

Does Diageo plc have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.