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DEO (Diageo) PE Ratio (TTM) : 17.96 (As of Oct. 31, 2024)


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What is Diageo PE Ratio (TTM)?

The PE Ratio (TTM), or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2024-10-31), Diageo's share price is $124.16. Diageo's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2024 was $6.91. Therefore, Diageo's PE Ratio (TTM) for today is 17.96.


The historical rank and industry rank for Diageo's PE Ratio (TTM) or its related term are showing as below:

DEO' s PE Ratio (TTM) Range Over the Past 10 Years
Min: 16.06   Med: 23.95   Max: 59.15
Current: 17.96


During the past 13 years, the highest PE Ratio (TTM) of Diageo was 59.15. The lowest was 16.06. And the median was 23.95.


DEO's PE Ratio (TTM) is ranked worse than
50.67% of 150 companies
in the Beverages - Alcoholic industry
Industry Median: 17.835 vs DEO: 17.96

Diageo's Earnings per Share (Diluted) for the six months ended in Jun. 2024 was $2.98. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2024 was $6.91.

As of today (2024-10-31), Diageo's share price is $124.16. Diageo's EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2024 was $7.17. Therefore, Diageo's PE Ratio without NRI for today is 17.32.

During the past 13 years, Diageo's highest PE Ratio without NRI was 34.91. The lowest was 16.04. And the median was 24.24.

Diageo's EPS without NRI for the six months ended in Jun. 2024 was $2.86. Its EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2024 was $7.17.

During the past 12 months, Diageo's average EPS without NRI Growth Rate was -9.20% per year. During the past 3 years, the average EPS without NRI Growth Rate was 6.80% per year. During the past 5 years, the average EPS without NRI Growth Rate was 4.60% per year. During the past 10 years, the average EPS without NRI Growth Rate was 5.00% per year.

During the past 13 years, Diageo's highest 3-Year average EPS without NRI Growth Rate was 308.80% per year. The lowest was -71.10% per year. And the median was 5.80% per year.

Diageo's EPS (Basic) for the six months ended in Jun. 2024 was $2.98. Its EPS (Basic) for the trailing twelve months (TTM) ended in Jun. 2024 was $6.93.


Diageo PE Ratio (TTM) Historical Data

The historical data trend for Diageo's PE Ratio (TTM) 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 PE Ratio (TTM) Chart

Diageo Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
PE Ratio (TTM)
Get a 7-Day Free Trial Premium Member Only Premium Member Only 45.53 30.93 23.62 21.80 18.33

Diageo Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
PE Ratio (TTM) 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 23.62 At Loss 21.80 At Loss 18.33

Competitive Comparison of Diageo's PE Ratio (TTM)

For the Beverages - Wineries & Distilleries subindustry, Diageo's PE Ratio (TTM), along with its competitors' market caps and PE Ratio (TTM) 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 PE Ratio (TTM) Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Diageo's PE Ratio (TTM) distribution charts can be found below:

* The bar in red indicates where Diageo's PE Ratio (TTM) falls into.



Diageo PE Ratio (TTM) Calculation

The PE Ratio (TTM), or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

Diageo's PE Ratio (TTM) for today is calculated as

PE Ratio (TTM)=Share Price/Earnings per Share (Diluted) (TTM)
=124.16/6.912
=17.96

Diageo's Share Price of today is $124.16.
For company reported semi-annually, Diageo's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2024 adds up the semi-annually data reported by the company within the most recent 12 months, which was $6.91.

* 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.

It can also be calculated from the numbers for the whole company:

PE Ratio (TTM)=Market Cap /Net Income

There are at least three kinds of PE Ratio (TTM)s used by different investors. They are Trailing Twelve Month PE Ratio (TTM) or PE Ratio (TTM) (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio (TTM) based on inflation-adjusted normalized PE Ratio (TTM) is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio (TTM), the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


Diageo  (NYSE:DEO) PE Ratio (TTM) Explanation

The PE Ratio (TTM) can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio (TTM) is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio (TTM) is positive. Also for stocks with the same PE Ratio (TTM), the one with faster growth business is more attractive.

If a company loses money, the PE Ratio (TTM) becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio (TTM) divided by the growth ratio. He thinks a company with a PE Ratio (TTM) equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio (TTM) of 20, instead of a company growing 10% a year with a PE Ratio (TTM) of 10.

Because the PE Ratio (TTM) measures how long it takes to earn back the price you pay, the PE Ratio (TTM) can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio (TTM) measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio (TTM) can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratio (TTM)s are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio (TTM) is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .

PE Ratio (TTM) can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio (TTM).


Diageo PE Ratio (TTM) Related Terms

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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.

Diageo Headlines

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