GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Diageo PLC (NYSE:DEO) » Definitions » Peter Lynch Fair Value

DEO (Diageo) Peter Lynch Fair Value : $48.46 (As of Oct. 31, 2024)


View and export this data going back to 1997. Start your Free Trial

What is Diageo Peter Lynch Fair Value?

Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year. Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years. If 5-Year Growth Rate is greater than 25% a year, we use 25. If 5-Year Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.

Here, as of today, Diageo's PEG is 1. Diageo's 5-Year TTM EBITDA Growth Rate is 6.76. Diageo's EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2024 was $7.17. Therefore, the Peter Lynch Fair Value for today is $48.46.

As of today (2024-10-31), Diageo's share price is $124.16. Diageo's Peter Lynch fair value is $48.46. Therefore, Diageo's Price to Peter Lynch Fair Value Ratio for today is 2.56.


The historical rank and industry rank for Diageo's Peter Lynch Fair Value or its related term are showing as below:

DEO' s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 2.4   Med: 3.91   Max: 5.35
Current: 2.4


During the past 13 years, the highest Price to Peter Lynch Fair Value Ratio of Diageo was 5.35. The lowest was 2.40. And the median was 3.91.


DEO's Price-to-Peter-Lynch-Fair-Value is ranked worse than
74.68% of 79 companies
in the Beverages - Alcoholic industry
Industry Median: 1.31 vs DEO: 2.40

Note: Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart.


Diageo Peter Lynch Fair Value Historical Data

The historical data trend for Diageo's Peter Lynch Fair Value can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Diageo Peter Lynch Fair Value Chart

Diageo Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Peter Lynch Fair Value
Get a 7-Day Free Trial Premium Member Only Premium Member Only 32.78 35.83 43.50 70.44 50.19

Diageo Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
Peter Lynch Fair Value Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 43.50 - 70.44 - 50.19

Competitive Comparison of Diageo's Peter Lynch Fair Value

For the Beverages - Wineries & Distilleries subindustry, Diageo's Price-to-Peter-Lynch-Fair-Value, along with its competitors' market caps and Price-to-Peter-Lynch-Fair-Value data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Diageo's Price-to-Peter-Lynch-Fair-Value Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Diageo's Price-to-Peter-Lynch-Fair-Value distribution charts can be found below:

* The bar in red indicates where Diageo's Price-to-Peter-Lynch-Fair-Value falls into.



Diageo Peter Lynch Fair Value Calculation

Diageo's Peter Lynch Fair Value for today is calculated as

Peter Lynch Fair Value=PEG Ratio*5-Year TTM EBITDA Growth Rate***EPS without NRI (TTM)
=1* 6.76 *7.168
=48.46

For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Diageo's EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2024 was $7.17.


* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** Please be aware that the 5-Year TTM EBITDA Growth Rate is calculated based on TTM data over the last 5 years. For quarterly reported companies, the TTM data adds up the quarterly data reported by the company within the most recent 12 months. For companies that report semi-annually, annually, or do not have enough quarterly data, GuruFocus uses the annual data as the TTM data.

If 5-Year Earnings Growth Rate is greater than 25% a year, we use 25.

If 5-Year Earnings Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.

Please note that we use the 5-year average growth rate of EBITDA per share as the growth rate for non-bank companies, as EBITDA growth is subject to less manipulations than net earnings per share. For banks, we use the 5-year average growth rate of Book Value per share as the growth rate. The reason is that EBITDA is not applicable to Banks and Book value is a relative important measurement for Banks. In the calculation, PEG=1 because Peter Lynch thinks that the fair P/E ratio of the growth stock is equal to its earnings growth rate.


Diageo  (NYSE:DEO) Peter Lynch Fair Value Explanation

Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year.

Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years.

Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart. In Peter Lynch chart, a fixed P/E ratio of 15 is used to draw the Earnings Line. Therefore the value reached has a P/E ratio of 15. But in Peter Lynch Fair Value calculation, P/E equals to the growth rate of EBITDA per share over the past 5 years, which is 6.76 instead of 15 in this case.

Diageo's Price to Peter Lynch Fair Value Ratio for today is calculated as

Price to Peter Lynch Fair Value=Share Price/Peter Lynch Fair Value
=124.16/48.46
=2.56

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Diageo Peter Lynch Fair Value Related Terms

Thank you for viewing the detailed overview of Diageo's Peter Lynch Fair Value provided by GuruFocus.com. Please click on the following links to see related term pages.


Diageo Business Description

Address
16 Great Marlborough Street, London, GBR, W1F 7HS
The product of a merger between Grand Metropolitan and Guinness in 1997, Diageo is one of the world's leading producers of branded premium spirits, approximately level with Kweichow Moutai in revenue terms. It also produces and markets beer and wine. Brands include Johnnie Walker blended scotch, Smirnoff vodka, Crown Royal Canadian whiskey, Captain Morgan rum, Casamigos tequila, Tanqueray gin, Baileys Irish Cream, and Guinness stout. Diageo also owns 34% of premium champagne and cognac maker Moet Hennessy, a subsidiary of French luxury goods maker LVMH Moet Hennessy-Louis Vuitton, and a near-56% stake in India's United Spirits.