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Diageo plc (DEON) Fair Value & Analysis

Consumer Defensive · MX · Market cap 783B MXN

DP Diageo plc DEON · MX
Price1,487 MXN
Fair Value1,239 MXN
Upside-16.7%
Quality53/100
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Mixed Growth
Solidly profitable · 12.2% net margin
High debt · generates free cash flow
0.06% dividend yield
Wide moat 71/100
Evidence: Medium Range 627.71 MXN – 1,936 MXN Share as image

Fair value as of: Jul 16, 2026

From 26 valuation models · updated 22 days ago

Fair value updated Jul 16, 2026, revised from 1,240 MXN to 1,239 MXN (−0.1%) since Jul 15, 2026. Share price +7.0% over the past month.

A solid business, but screening 17% overvalued on our models.

What matters now

  • The model range is unusually wide (627.71 MXN to 1,936 MXN). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (53/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

4,026 MXN 1,279 MXN Fair Value 1,239 MXN Apr 2021 Jul 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range 1,279 MXN – 4,026 MXN · fair‑value band 627.71 MXN – 1,936 MXN · the 1,487 MXN price screens above the 1,239 MXN fair value. Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

Diageo plc (DEON) currently trades at 1,487 MXN, while our model-based Fair Value estimate is 1,239 MXN, implying the stock looks roughly 16.7% overvalued today. We read business quality at 53/100 (solid quality), in the Consumer Defensive sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, Diageo plc generated revenue of 19.8B MXN at a net margin of 12.2%. Revenue declined 4.0% year over year. It earns a return on equity of 19.7%. Net debt stands at 21.5B MXN. Fundamentals as of Jul 16, 2026

Our scenario range runs from 627.71 MXN (bear case) to 1,936 MXN (bull case); at 1,487 MXN, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 27% below its 52-week high and 16% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at 18% fair-value upside, at -17%, DEON screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF 510.57 MXN 1,258 MXN 2,520 MXN 80
Residual Income 505.52 MXN 605.95 MXN 1,565 MXN 76
Rev-Margin DCF 514.12 MXN 1,271 MXN 2,171 MXN 74
All 26 models by family
DCF Models
FCF DCF 494.67 MXN 1,239 MXN 2,476 MXN 38
Owner Earnings 400.60 MXN 1,083 MXN 2,216 MXN 31
5Y Revenue Exit 514.12 MXN 1,280 MXN 2,276 MXN 39
5Y EBITDA Exit 943.53 MXN 2,106 MXN 3,497 MXN 41
5Y P/E Exit 460.07 MXN 1,176 MXN 1,943 MXN 38
10Y Revenue Exit 458.77 MXN 1,176 MXN 2,181 MXN 36
10Y EBITDA Exit 781.19 MXN 1,771 MXN 3,159 MXN 37
10Y P/E Exit 462.51 MXN 1,101 MXN 1,914 MXN 35
Earnings-Based
Graham-Dodd 538.62 MXN 1,903 MXN 2,562 MXN 54
Lynch FV 445.67 MXN 636.81 MXN 827.76 MXN 50
PEG = 1.0 445.67 MXN 636.81 MXN 827.76 MXN 46
EPV 505.71 MXN 705.45 MXN 883.12 MXN 59
Dividend Discount
Gordon GGM 743.60 MXN 1,624 MXN 2,732 MXN 70
DDM Multi-Stage 743.60 MXN 1,330 MXN 1,692 MXN 61
Multiples
P/E Multiple 1,188 MXN 1,584 MXN 1,980 MXN 63
P/S Multiple 1,010 MXN 1,346 MXN 1,683 MXN 58
P/B Multiple 839.54 MXN 1,119 MXN 1,399 MXN 55
EV/EBIT 1,342 MXN 1,999 MXN 2,655 MXN 53
EV/EBITDA 1,359 MXN 2,021 MXN 2,683 MXN 54
EV/Revenue 565.56 MXN 1,076 MXN 1,587 MXN 43
Asset-Based
NCAV (Graham) 186.46 MXN 250.05 MXN 373.11 MXN 50
Growth DCF
Growth DCF 510.57 MXN 1,258 MXN 2,520 MXN 80
Rev-Margin DCF 514.12 MXN 1,271 MXN 2,171 MXN 74
Economic Profit
Residual Income 505.52 MXN 605.95 MXN 1,565 MXN 76
ROIC Compounder 552.65 MXN 942.41 MXN 1,486 MXN 72
Growth Earnings
Growth-Adj P/E 835.80 MXN 1,194 MXN 1,552 MXN 68

Widest divergence: Multiples (1,346 MXN) versus Asset-Based (250.05 MXN). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 19.8B MXN
Revenue growth (YoY) -4.0%
Net margin 12.2%
Return on equity 19.7%
Free cash flow 2.7B MXN FY2025
P/E ratio 17.9
More key figures
Operating margin 31.3%
EPS (TTM) 76.44 MXN
Dividend yield 0.1%
EPS growth (YoY) +2.9%
Net debt 21.5B MXN FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 53/100

Of which business quality 53 · Market factors (momentum, volatility) 43

Profitability 47
Margins and returns on capital today
Quality Growth 41
Are margins and returns improving?
Cashflow 68
Earnings quality: real cash, not paper profit
Fin. Strength 33
Balance sheet, leverage, solvency risk
Investment 51
Disciplined investing over empire-building
Low Volatility 84
Calm price path (market factor)
Momentum 30
Price trend over the last 3–12 months (market factor)
52W Momentum 20
Distance to the 52-week high (market factor)
Net Issuance 86
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Diageo plc, together with its subsidiaries, engages in the production, marketing, and distribution of alcoholic beverages in North America, Europe, the Asia Pacific, Latin America and Caribbean, and Africa.

Full company description

Diageo plc, together with its subsidiaries, engages in the production, marketing, and distribution of alcoholic beverages in North America, Europe, the Asia Pacific, Latin America and Caribbean, and Africa. It offers beer, scotch, gin, vodka, rum, liqueur, raki, wine, Irish and Canadian whisky, US and Indian whisky, Chinese whisky, cachaça, tequila, brandy, and Chinese white spirit beverages. The company also provides ready-to-drink and non-alcoholic beverages. Its principal brands include Johnnie Walker, Don Julio, Guinness, Crown Royal, Smirnoff, Baileys, Captain Morgan, Casamigos, Shui Jing Fang, and McDowell's. The company was formerly known as Guinness plc and changed its name to Diageo plc in February 1998. The company was incorporated in 1886 and is headquartered in London, the United Kingdom.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Diageo plc reported revenue of 20.2B MXN in FY2025 versus 12.7B MXN in FY2021, a compound +12.3%/yr. Reported net income was 2.4B MXN in FY2025, compounding −3.0%/yr from FY2021.

Growth Quality 88/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
20.2B MXN
Latest YoY
−0.1%
Avg. growth/yr (3Y)
+9.4%
Avg. growth/yr (5Y)
+11.5%
Avg. growth/yr (11Y)
+6.4%
Revenue +12.3%/yr
FY21 12.7B MXN
FY22 15.5B MXN
FY23 17.1B MXN
FY24 20.3B MXN
FY25 20.2B MXN
Net income −3.0%/yr
FY21 2.7B MXN
FY22 3.2B MXN
FY23 3.7B MXN
FY24 3.9B MXN
FY25 2.4B MXN

DEON screens 17% overvalued. Compare with Kweichow Moutai Co →

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Cite: Fair Value Calculator (2026). "Diageo plc Fair Value". https://www.fairvalue-calculator.com/stock/DEON

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Alcohol

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Beverages - Wineries & Distilleries stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
Kweichow Moutai Co 600519 ¥1,251 ¥1,238 -1%
Wuliangye Yibin Co 000858 ¥73.69 ¥48.44 -34%
Shanxi Xinghuacun Fen Wine Factory Co 600809 ¥110.50 ¥185.80 +68%
Pernod Ricard SA RI €65.24 €76.68 +18%
Luzhou Laojiao Co 000568 ¥83.12 ¥149.17 +79%
Brown-Forman Corporation BFA $26.60 $28.15 +6%
United Spirits Limited UNITDSPR ₹1,376 ₹440.56 -68%
Thai Beverage Public Company Y92 0.4450 SGD 0.6900 SGD +55%
Jiangsu Yanghe Distillery Co 002304 ¥38.08 ¥27.82 -27%
Anhui Gujing Distillery Co 000596 ¥79.23 ¥128.26 +62%

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Frequently asked questions

Is Diageo plc (DEON) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of 1,239 MXN versus a price of 1,487 MXN, about −17% (overvalued).
What is the fair value of DEON?
Our model-based fair value for Diageo plc is 1,239 MXN (as of Jul 16, 2026), built from audited fundamentals. The current price is 1,487 MXN.
What is the quality score of DEON?
Diageo plc has a Quality Score of 53/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Diageo plc (DEON)?
Diageo plc reported trailing-twelve-month revenue of about 19.8B MXN (latest available figure, as of Jul 16, 2026).
What is the net profit margin of DEON?
The net profit margin of Diageo plc is about 12.2%, meaning it keeps roughly 12.2% of revenue as net income. Based on the latest reported figures.
Does Diageo plc pay a dividend?
Diageo plc currently shows a dividend yield of about 0.06% relative to its recent price (as of Jul 16, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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