Diageo PLC ADR (DEO) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Diageo PLC ADR stock (DEO) is currently trading at $72.47. Diageo PLC ADR PE ratio is 17.06. Diageo PLC ADR PS ratio (Price-to-Sales) is 2.07. Analyst consensus price target for DEO is $105.29. WallStSmart rates DEO as Hold.
- DEO PE ratio analysis and historical PE chart
- DEO PS ratio (Price-to-Sales) history and trend
- DEO intrinsic value — DCF, Graham Number, EPV models
- DEO stock price prediction 2025 2026 2027 2028 2029 2030
- DEO fair value vs current price
- DEO insider transactions and insider buying
- Is DEO undervalued or overvalued?
- Diageo PLC ADR financial analysis — revenue, earnings, cash flow
- DEO Piotroski F-Score and Altman Z-Score
- DEO analyst price target and Smart Rating
Diageo PLC ADR
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DEO Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Diageo PLC ADR (DEO)
DEO trades 103% above its Graham fair value of $49.54, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Diageo PLC ADR (DEO) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, peg ratio, operating margin. Concerns around revenue growth and eps growth. Fundamentals are solid but monitor weak areas for improvement.
Diageo PLC ADR (DEO) Key Strengths (4)
Growing significantly faster than its price suggests
Keeps $31 of every $100 in revenue after operating costs
Large-cap company with substantial market presence
Solid profitability: $20 profit per $100 equity
Supporting Valuation Data
Diageo PLC ADR (DEO) Areas to Watch (6)
Revenue declining -4.00%, a shrinking business
Earnings barely growing at 2.90%
Very low institutional interest at 9.88%
Premium pricing at 3.5x book value
Revenue is fairly priced at 2.07x sales
Decent profitability, keeps $12 per $100 revenue
Diageo PLC ADR (DEO) Detailed Analysis Report
Overall Assessment
This company scores 56/100 in our Smart Analysis, earning a C grade. Out of 10 metrics analyzed, 4 register as strengths (avg 9.0/10) while 6 fall into concern territory (avg 3.3/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on PEG Ratio, Operating Margin, Market Cap. Valuation metrics including PEG Ratio (0.51) suggest the stock is attractively priced. Profitability is solid with Return on Equity at 19.70%, Operating Margin at 31.30%.
The Bear Case
The primary concerns are Revenue Growth, EPS Growth, Institutional Own.. Some valuation metrics including Price/Sales (2.07), Price/Book (3.54) suggest expensive pricing. Growth concerns include Revenue Growth at -4.00%, EPS Growth at 2.90%, which may limit upside. Profitability pressure is visible in Profit Margin at 12.20%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Revenue Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 19.70% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at -4.00% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (PEG Ratio, Operating Margin) and negatives (Revenue Growth, EPS Growth). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
DEO Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
DEO's Price-to-Sales ratio of 2.07x trades at a deep discount to its historical average of 7.98x (25th percentile). The current valuation is 90% below its historical high of 20.27x set in Dec 2017, and 76% above its historical low of 1.18x in May 2010. Over the past 12 months, the PS ratio has compressed from ~2.4x as trailing revenue scaled faster than the stock price.
WallStSmart Analysis Synopsis
Data-driven financial summary for Diageo PLC ADR (DEO) · CONSUMER DEFENSIVE › BEVERAGES - WINERIES & DISTILLERIES
The Big Picture
Diageo PLC ADR faces headwinds with declining revenue, though profitability provides a cushion. Revenue reached 19.8B with 400% decline year-over-year. Profit margins of 12.2% are healthy, with room for further expansion as the business scales.
Key Findings
ROE of 1970.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Generating 1.1B in free cash flow and 1.6B in operating cash flow. Earnings are translating into actual cash generation.
Revenue contracted 400% YoY. Worth determining whether this is cyclical or structural.
Debt-to-equity ratio of 2.20 is elevated. High leverage amplifies both gains and losses and increases financial risk.
What to Watch Next
Margin expansion: can Diageo PLC ADR push profit margins above 15% as the business scales?
Dividend sustainability with a current yield of 449.0%. Watch payout ratio and free cash flow coverage.
Debt management: total debt of 24.4B is significantly higher than cash (2.2B). Monitor refinancing risk.
Sector dynamics: monitor BEVERAGES - WINERIES & DISTILLERIES industry trends, competitive moves, and regulatory changes that could impact Diageo PLC ADR.
Bottom Line
Diageo PLC ADR faces challenges with declining revenue. While profitability provides a buffer, the long-term trajectory needs to improve. Watch for management's strategic response and whether the company can stabilize or pivot to new growth drivers.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Diageo PLC ADR(DEO)
NYSE
CONSUMER DEFENSIVE
BEVERAGES - WINERIES & DISTILL...
USA
Diageo plc produces, markets and sells alcoholic beverages. The company is headquartered in London, the United Kingdom.