| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 48 | 30.3x | 17.3x | Around median | |
Growth | 21 | -3.2% | 7.1% | Bottom tier | |
Quality | 83 | — | 4.5% | Top tier | |
Safety | 35 | 3.3x | 2.6x | Bottom tier | |
Capital Return | 98 | 8.04% | 0.06% | Top tier | |
Momentum | 74 | -11.2% | -1.6% | Top tier | |
Sentiment | 45 | 5 | 3 | Around median |
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Diageo plc is a global alcoholic beverages company that generates revenue from a portfolio spanning Scotch whisky, tequila, beer, Canadian whisky, and other categories, through brands such as Johnnie Walker, Don Julio, Guinness, Crown Royal, and Casamigos. Its presence across North America, Europe, Asia Pacific, Latin America and the Caribbean, and Africa provides geographic diversification, while Scotch whisky represented a quarter of global net sales during the first half of fiscal 2025. The company relies on brand strength, pricing, product mix, distribution, and innovation, while directing investment toward fast-growing brands such as Don Julio and Guinness.
In fiscal Q4 2026, whose results were filed on 2026-08-18, Diageo recorded revenue of 9.2 billion dollars, a net loss of 258.0 million dollars, and diluted earnings per share of -0.44. Gross margin was 57.7%, down 0.5 percentage points from 58.2% in fiscal Q2 2026, while operating margin expanded to 25.2% from 23.0%, and operating cash flow reached 2.3 billion dollars. For fiscal 2026, revenue was 19.6 billion dollars, gross margin was 59.5%, and net income was 1.7 billion dollars, compared with revenue of 20.2 billion dollars and net income of 2.4 billion dollars in fiscal 2025.
The business mix reveals clear divergence among brands and categories. In the first half of fiscal 2025, organic tequila sales grew 21%, supported by Don Julio, and Guinness recorded organic growth of 17% for its eighth consecutive half of double-digit growth, while organic Scotch whisky sales declined 5% under pressure from North America and Greater China. In the United States, the company maintained or increased its share across approximately 90% of net sales by the end of that half, but approximately 45% of its product net sales there must be produced in Canada or Mexico under rules of origin, linking an important part of its operating economics to tariffs and cross-border supply chains.
Q4 FY2026
When: Fiscal 2027
Operating margin compared with the 25.2% threshold
Revenue compared with the 19.6 billion dollar threshold
Total debt compared with the 22.2 billion dollar threshold
The analyst-target method indicates a median of 99 dollars based on two analysts, representing a low-confidence indicative value that prices in growth expectations and is inherently inclined toward optimism. The industry-multiple method indicates 28 dollars, within a range of 21 dollars to 76 dollars, based on sales and a median multiple of 0.8 for a sample of 9 companies; this is also a low-confidence indicative value and treats Diageo like its industry peers. The two methods do not agree, as the analyst estimate places the value far above the industry-multiple estimate, reflecting the former's inclusion of growth expectations versus the latter's reliance on pricing sales according to peer multiples. TD Cowen raised its target to 110 dollars from 93 dollars on 2026-08-10, while changes during the ninety-day period recorded no target reductions, whereas EL7's valuation dimension ranked 28 of 29 within the industry according to 2026-06-30 data.
Figures in the text are as of 2026-09-27; the live price is shown at the top of the page.
In fiscal Q4 2026, whose results were filed on 2026-08-18, revenue was 9.2 billion dollars, down 2.6% year over year, and the company recorded a net loss of 258.0 million dollars and diluted earnings per share of -0.44. Gross margin declined to 57.7% from 58.2% in fiscal Q2 2026. In contrast, operating margin expanded to 25.2% from 23.0%, and operating cash flow reached 2.3 billion dollars.
In the first half of fiscal 2025, organic tequila sales grew 21%, led by Don Julio, and the brand recorded double-digit growth in North America, Latin America and the Caribbean, and Europe. Guinness achieved organic growth of 17% for its eighth consecutive half of double-digit growth, and Guinness 0.0 came to represent 12% of Guinness net sales in Great Britain. Crown Royal BlackBerry also became the number one packaged spirits innovation according to Nielsen for seven months through the 2025-02-04 call and was converted into a permanent product after attracting buyers, one in five of whom was new to whisky.
Automated analysis for informational purposes only — not investment advice.
In fiscal Q4 2026, ending within the filing dated 2026-08-18, total debt was 22.2 billion dollars versus cash and investments of 1.5 billion dollars. In the first half of fiscal 2025, the net debt-to-earnings before interest, taxes, depreciation, and amortization ratio was 3.1 times, exceeding the target range of between 2.5 and 3 times. This was reflected in the company's score of 7 out of 100 and ranking of 27 of 29 within the industry on the financial safety dimension according to 2026-06-30 data.
Management stated on the 2025-02-04 call that approximately 45% of its product net sales in the United States must be produced in Canada or Mexico because of rules of origin. The risks are concentrated in tequila made in Mexico and Canadian whisky, with Mexico being the source of most affected net sales. The announced tariffs were 25% on goods imported from Canada and Mexico and are imposed on input costs rather than the retail price, while mitigation tools included pricing, promotion and inventory management, supply-chain optimization, and investment reallocation.
Results for the first half of fiscal 2025 showed organic growth of 17% for Guinness and 21% for tequila, led by Don Julio. However, Scotch whisky represents a quarter of Diageo's global net sales, and its organic sales declined 5% during the same period because of weakness in North America and Greater China and some consumers shifting to lower price tiers. Guinness and Don Julio therefore provide two strong drivers, but the scale of Scotch whisky makes its recovery important to sustaining group growth.
According to data for the period ended 2026-06-30, Diageo recorded an overall market score of 66 out of 100 and ranked 10 of 29 within the industry. Quality scored 100 out of 100 and ranked first in the industry, while shareholder yield scored 82 out of 100 and ranked 6 of 29. In contrast, valuation scored 4 out of 100 and ranked 28 of 29, while financial safety scored 7 out of 100 and ranked 27 of 29, highlighting the gap between strong business characteristics and weak balance-sheet and relative valuation metrics.