Diageo plc (DEO) P/E Ratio History
Premium ValuationTrading at 20.3x vs 5Y avg 15.8x · 85th percentile · Premium to historical baseline · Data 2000–2026
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P/E Ratio Analysis
As of September 24, 2026, Diageo plc (DEO) trades at a price-to-earnings ratio of 20.3x, with a stock price of $86.11 and trailing twelve-month earnings per share of $7.35.
The current P/E is 29% above its 5-year average of 15.8x. Over the past five years, DEO's P/E has ranged from a low of 8.0x to a high of 31.1x, placing the current valuation at the 85th percentile of its historical range.
Compared to the Consumer Defensive sector median P/E of 18.9x, DEO is roughly in line with its sector peers. The sector includes 147 companies with P/E ratios ranging from 0.1x to 197.7x.
The PEG ratio of 1.68 (P/E divided by -39% EPS growth) suggests a fair valuation relative to its earnings growth. Peter Lynch popularized the rule that a PEG below 1.0 indicates an attractive entry point.
Relative to the broader market, DEO trades roughly in line with the S&P 500 median P/E of 25.3x. Investors should consider the company's growth prospects, competitive position, and earnings quality when evaluating whether the current valuation is justified.
For a comprehensive intrinsic value estimate using discounted cash flow analysis, see our DEO DCF Valuation Calculator →
Note: P/E ratio is just one valuation metric. It does not account for balance sheet strength, cash flow quality, or growth sustainability. Always conduct comprehensive due diligence before making investment decisions.
DEO Cross-Benchmark Valuation
How does the current P/E compare to sector peers and the broader market?
DEO P/E vs Peers
Branded spirits and beer producers peers sorted by market cap
| Company | Market Cap | P/E Ratio | PEG Ratio | EPS Growth (1Y) |
|---|---|---|---|---|
| $20B | 12.1Lowest | - | +2236%Best | |
| $2B | 17.0 | - | +95% | |
| $149B | 22.3 | 0.59Best | +21% | |
| $379B | 29.0 | 2.59 | +24% | |
| $37B | 21.1 | 0.72 | -2% | |
| $14B | 39.6 | 0.81 | +5% |
Lower P/E can signal a discount or weaker growth expectations; PEG adds growth context.
DEO Historical P/E Data (2000–2026)
Quarterly P/E ratios calculated from closing price and TTM EPS
| Quarter | Period End | Price | TTM EPS | P/E Ratio | vs Avg |
|---|---|---|---|---|---|
| FY2026 Q4 | - | $80.38 | $7.36 | 10.9x | -36% |
| FY2026 Q2 | Dec 31 2025 | $86.27 | $10.80 | 8.0x | -53% |
| FY2025 Q4 | Jun 30 2025 | $100.84 | $11.20 | 9.0x | -47% |
| FY2025 Q2 | - | $127.13 | $12.88 | 9.9x | -42% |
| FY2024 Q4 | Jun 30 2024 | $126.08 | $13.28 | 9.5x | -45% |
| FY2024 Q2 | Dec 31 2023 | $145.66 | $12.52 | 11.6x | -32% |
| FY2023 Q4 | Jun 30 2023 | $173.48 | $11.92 | 14.6x | -15% |
| FY2023 Q2 | Dec 31 2022 | $178.19 | $11.32 | 15.7x | -8% |
| FY2022 Q4 | - | $174.12 | $10.12 | 17.2x | +0% |
| FY2022 Q2 | Dec 31 2021 | $220.14 | $7.08 | 31.1x | +81% |
| FY2021 Q4 | Jun 30 2021 | $191.69 | $6.88 | 27.9x | +63% |
| FY2021 Q2 | - | $158.81 | $7.04 | 22.6x | +32% |
| FY2020 Q4 | - | $134.39 | $7.56 | 17.8x | +4% |
| FY2020 Q2 | - | $168.42 | $9.88 | 17.0x | -1% |
| FY2019 Q4 | Jun 30 2019 | $172.32 | $10.00 | 17.2x | +1% |
| FY2019 Q2 | Dec 31 2018 | $141.80 | $9.84 | 14.4x | -16% |
| FY2018 Q4 | Jun 30 2018 | $144.01 | $9.12 | 15.8x | -8% |
| FY2018 Q2 | Dec 31 2017 | $146.03 | $8.96 | 16.3x | -5% |
| FY2017 Q4 | Jun 30 2017 | $119.83 | $7.92 | 15.1x | -12% |
| FY2017 Q2 | Dec 31 2016 | $103.94 | $7.76 | 13.4x | -22% |
| FY2016 Q4 | - | $112.88 | $7.36 | 15.3x | -10% |
| FY2016 Q2 | - | $109.07 | $7.04 | 15.5x | -10% |
| FY2015 Q4 | - | $116.04 | $7.52 | 15.4x | -10% |
| FY2015 Q2 | Dec 31 2014 | $114.09 | $7.36 | 15.5x | -10% |
| FY2014 Q4 | Jun 30 2014 | $127.27 | $7.68 | 16.6x | -3% |
| FY2014 Q2 | - | $132.42 | $9.00 | 14.7x | -14% |
| FY2013 Q4 | Jun 30 2013 | $114.95 | $8.59 | 13.4x | -22% |
| FY2013 Q2 | Dec 31 2012 | $116.58 | $8.19 | 14.2x | -17% |
| FY2008 Q4 | Jun 30 2008 | $73.87 | $6.87 | 10.8x | -37% |
| FY2008 Q2 | Dec 31 2007 | $85.83 | $7.08 | 12.1x | -29% |
| FY2007 Q4 | Jun 30 2007 | $83.31 | $7.21 | 11.6x | -33% |
| FY2007 Q2 | Dec 31 2006 | $79.31 | $7.71 | 10.3x | -40% |
| FY2006 Q4 | Jun 30 2006 | $67.55 | $8.23 | 8.2x | -52% |
| FY2006 Q2 | Dec 31 2005 | $58.30 | $6.32 | 9.2x | -46% |
| FY2005 Q4 | - | $59.30 | $4.55 | 13.0x | -24% |
| FY2005 Q2 | Dec 31 2004 | $57.88 | $2.13 | 27.2x | +59% |
| FY2004 Q2 | Dec 31 2003 | $52.86 | $0.58 | 91.1x | +432% |
| FY2003 Q4 | Jun 30 2003 | $43.76 | $1.37 | 31.9x | +86% |
| FY2003 Q2 | - | $43.80 | $3.20 | 13.7x | -20% |
| FY2002 Q4 | Jun 30 2002 | $51.65 | $5.00 | 10.3x | -40% |
| FY2002 Q2 | Dec 31 2001 | $46.27 | $4.15 | 11.1x | -35% |
| FY2001 Q4 | Jun 30 2001 | $43.95 | $3.20 | 13.7x | -20% |
| FY2001 Q2 | Dec 31 2000 | $44.38 | $2.28 | 19.5x | +14% |
| FY2000 Q4 | Jun 30 2000 | $35.56 | $1.46 | 24.4x | +42% |
Average P/E for displayed period: 17.1x
DEO Chart Terminal
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Intrinsic Valuation
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Historical Returns
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Peer Comparison
Compare growth, multiples, and margins vs sector.
DEO — Frequently Asked Questions
Quick answers to the most common questions about buying DEO stock.
What is DEO's P/E ratio?
Diageo plc (DEO) trailing twelve-month P/E ratio is 20.3x, based on TTM diluted EPS of $7.35. The 5-year average P/E is 15.8x and the historical range spans 8.0x to 31.1x.
Is DEO stock overvalued or undervalued?
DEO trades at 20.3x P/E, above its 5-year average of 15.8x. The 85th percentile ranking within the 8.0x–31.1x historical range indicates a premium to historical valuation.
Is DEO stock expensive?
Yes, DEO is expensive relative to its own history. The current P/E of 20.3x is above the 5-year average of 15.8x and also above the Consumer Defensive sector median of 18.9x. The stock sits at the 85th percentile of its 5-year valuation range.
What is DEO's historical P/E range?
Over the past 5 years, DEO's P/E ratio has ranged from 8.0x to 31.1x, with a median of 15.7x and an average of 15.8x. The current P/E of 20.3x places the stock at the 85th percentile of this range. Full historical data spans 2000–2026.
How does DEO's P/E compare to the S&P 500?
DEO trades at 20.3x P/E versus the S&P 500 median of 25.3x. The 20% discount to the market suggests lower growth expectations or perceived higher risk.
How does DEO's valuation compare to Consumer Defensive peers?
Diageo plc P/E of 20.3x compares to the Consumer Defensive sector median of 18.9x. The premium reflects expected growth above peers or stronger fundamentals. See the peer comparison table on this page for ticker-by-ticker P/E and PEG.
What is DEO's PEG ratio?
DEO PEG ratio is 1.68, based on a P/E of 20.3x and EPS growth of -38.7%. A PEG between 1 and 2 suggests valuation aligns with growth expectations — typically considered fair.
What is DEO's earnings yield?
DEO earnings yield is 4.92%, the inverse of its 20.3x P/E ratio. Earnings yield represents the percentage of each dollar invested that the company earns. It can be compared directly to bond yields to assess relative attractiveness of stocks versus fixed income.