Diageo's Valuation Revisited: Mixed Share Price and Total Shareholder Return Profile

Diageo's recent share price rebound has sparked renewed interest in its fundamentals. The company has reported annual revenue of £20,245.0 and net income of £2,354.0, with a modest gain over the past 3 months and a positive year-to-date return. However, the shares have declined by double digits over the past year and deeper losses across the past 3 and 5 years. The company's focus on premiumization and category expansion is expected to support future revenue growth and gross margin expansion. The most followed narrative points to a fair value of £20.57, indicating an undervaluation of 14.5%.