Diageo plc (DEO) Financial Ratios
29 years of historical data (1997–2025) · Consumer Defensive · Beverages - Wineries & Distilleries
EV/EBITDA
↓
11.43
↓-41% vs avg
5yr avg: 19.47
30Y Low12.9·High35.4
P/FCF
↓
17.51
↓-34% vs avg
5yr avg: 26.39
30Y Low15.5·High188.8
P/B Ratio
↓
3.58
↓-58% vs avg
5yr avg: 8.50
30Y Low4.3·High13.5
ROE
↓
18.6%
↑-45% vs avg
5yr avg: 33.7%
30Y Low2%·High44%
Debt/EBITDA
↑
4.03
+17% vs avg
5yr avg: 3.44
30Y Low2.1·High6.4
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
DEO Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Diageo plc trades at 19.9x earnings, 25% below its 5-year average of 26.5x, sitting at the 4th percentile of its historical range. This is roughly in line with the Consumer Defensive sector median P/E of 19.6x. On a free-cash-flow basis, the stock trades at 17.5x P/FCF, 34% below the 5-year average of 26.4x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $47.0B | $56.2B | $70.6B | $98.5B | $101.2B | $112.4B | $79.1B | $104.6B | $89.8B | $75.6B | $71.1B |
| Enterprise Value | $69.2B | $78.4B | $90.9B | $117.5B | $114.9B | $124.4B | $92.6B | $116.2B | $98.9B | $83.4B | $80.1B |
| P/E Ratio → | 19.95 | 23.78 | 18.22 | 22.13 | 25.76 | 42.41 | 45.40 | 33.14 | 29.75 | 28.26 | 31.71 |
| P/S Ratio | 2.32 | 2.77 | 3.48 | 4.79 | 6.55 | 8.83 | 6.73 | 8.13 | 7.39 | 6.27 | 6.78 |
| P/B Ratio | 3.58 | 4.26 | 5.85 | 8.41 | 10.64 | 13.33 | 9.37 | 10.30 | 7.67 | 6.28 | 6.98 |
| P/FCF | 17.51 | 20.92 | 15.49 | 22.76 | 35.66 | 37.11 | 48.82 | 40.59 | 35.93 | 28.91 | 34.80 |
| P/OCF | 10.94 | 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
DEO EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Diageo plc's enterprise value stands at 11.4x EBITDA, 41% below its 5-year average of 19.5x. This is roughly in line with the Consumer Defensive sector median of 11.4x.
| 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 | 11.43 | 12.95 | 14.00 | 17.16 | 23.47 | 29.76 | 35.37 | 26.32 | 24.35 | 21.28 | 25.06 |
| EV / EBIT | 15.97 | 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 |
DEO Profitability
Margins and return-on-capital ratios measuring operating efficiency
Diageo plc earns an operating margin of 21.4%, significantly above the Consumer Defensive sector average of 1.4%. Operating margins have compressed from 27.0% to 21.4% over the past 3 years, signaling potential cost pressures or competitive headwinds. ROE of 18.6% indicates solid capital efficiency, compared to the sector median of 6.8%. ROIC of 9.6% represents adequate returns on invested capital versus a sector median of 5.5%.
Margins
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% |
Return on Capital
| 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% |
DEO Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Diageo plc carries a Debt/EBITDA ratio of 4.0x, which is highly leveraged (18% above the sector average of 3.4x). Net debt stands at $22.2B ($24.4B total debt minus $2.2B cash). Interest coverage of 4.2x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| 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 |
DEO Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.63x means Diageo plc can comfortably meet its short-term obligations, though there is limited excess liquidity. The quick ratio of 0.64x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory.
| 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 |
DEO Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Diageo plc returns 4.9% to shareholders annually primarily through dividends. The payout ratio of 97.6% is elevated — while still covered by earnings, there is limited headroom for dividend increases. The earnings yield of 5.0% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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 | 4.9% | 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% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.0% | 4.2% | 5.5% | 4.5% | 3.9% | 2.4% | 2.2% | 3.0% | 3.4% | 3.5% | 3.2% |
| FCF Yield | 5.7% | 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 | 4.9% | 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 |
Peer Comparison
Compare DEO with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 DEOYou | $47B | 19.9 | 11.4 | 17.5 | 60.1% | 21.4% | 18.6% | 9.6% | 4.0 |
 STZ | $26B | -338.4 | 9.5 | 13.6 | 51.0% | 35.5% | -0.9% | 13.0% | 3.0 |
 BEAM | $3B | -39.9 | — | — | 84.0% | -274.6% | -8.1% | -31.1% | — |
 SAM | $2B | 20.9 | 8.6 | 10.3 | 45.6% | 6.9% | 12.3% | 15.5% | 0.2 |
 MGPI | $413M | -3.9 | — | 5.4 | 37.2% | -17.6% | -13.9% | -6.7% | — |
 WVVI | $14M | -4.4 | — | — | — | — | -2.8% | -2.6% | — |
 BUD | $141B | 28.7 | 9.6 | 12.6 | 55.3% | 25.9% | 6.5% | 7.5% | 3.4 |
 TAP | $8B | -3.9 | — | 7.5 | 37.6% | -21.0% | -17.8% | -10.1% | — |
 KO | $341B | 26.0 | 25.4 | 64.3 | 61.6% | 28.7% | 43.2% | 15.8% | 3.1 |
 SYY | $35B | 19.7 | 11.6 | 19.7 | 18.4% | 3.8% | 97.5% | 15.7% | 3.5 |
 PFGC | $15B | 42.6 | 14.7 | 20.7 | 11.7% | 1.3% | 7.9% | 5.7% | 5.2 |
| Consumer Defensive Median | — | 19.6 | 11.4 | 15.7 | 40.1% | 1.4% | 6.8% | 5.5% | 3.4 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 29 years · Updated daily
Full DEO Stock Analysis
Analyst consensus, bull case, AI-generated risk factors, and peer comparison — all in one place.
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Start ComparisonDEO — Frequently Asked Questions
Quick answers to the most common questions about buying DEO stock.
What is Diageo plc's P/E ratio?
Diageo plc's current P/E ratio is 19.9x. The historical average is 31.2x. This places it at the 4th percentile of its historical range.
What is Diageo plc's EV/EBITDA?
Diageo plc's current EV/EBITDA is 11.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 21.9x.
What is Diageo plc's ROE?
Diageo plc's return on equity (ROE) is 18.6%. The historical average is 28.1%.
Is DEO stock overvalued?
Based on historical data, Diageo plc is trading at a P/E of 19.9x. This is at the 4th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Diageo plc's dividend yield?
Diageo plc's current dividend yield is 4.88% with a payout ratio of 97.6%.
What are Diageo plc's profit margins?
Diageo plc has 60.1% gross margin and 21.4% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Diageo plc have?
Diageo plc's Debt/EBITDA ratio is 4.0x, indicating high leverage. A ratio above 4x may signal elevated financial risk.