Diageo (DEO) Fundamental Analysis: Revenue, Earnings & Valuation

8.30 / 10

Outperform

Fundamentally, Diageo scores 8.3/10, rated Outperform. Key drivers—Profit‑MV, Net‑income/Revenue, ROE (21.2%), and annualized asset return (9.1%)—rank in top quartiles, delivering strong returns. However, cash‑up and YoY profit growth are negative, tempering the picture.

Analysis Checks(7/10)

Profit-MV

Value0.90

Score3/3

Weight30.64%

1M Return5.49%

Net income-Revenue

Value0.84

Score3/3

Weight30.11%

1M Return5.65%

Total profit (YoY growth rate %)

Value-35.22

Score1/3

Weight1.27%

1M Return0.31%

Net cash flow from operating activities (YoY growth rate %)

Value4.68

Score2/3

Weight6.70%

1M Return1.64%

Cash-UP

Value-0.16

Score1/3

Weight-25.39%

1M Return-8.66%

Annualized return on total assets (%)

Value9.09

Score3/3

Weight25.12%

1M Return4.88%

ROE (diluted) (%)

Value21.23

Score3/3

Weight22.36%

1M Return4.62%

Total assets turnover ratio

Value0.43

Score2/3

Weight6.33%

1M Return1.47%

Net profit attributable to parent company shareholders (YoY growth rate %)

Value-39.17

Score1/3

Weight1.34%

1M Return0.35%

Cash-MV

Value0.89

Score2/3

Weight1.52%

1M Return0.39%

Is DEO undervalued or overvalued?

DEO scores 8.30/10 on fundamentals and holds a Discounted valuation at present. Backed by its 14.85% ROE, 12.99% net margin, 16.71 P/E ratio, 2.95 P/B ratio, and -32.90% earnings growth, these metrics solidify its Outperform investment rating.