Diageo plc (DEO) receives a weak valuation score of 38 from InvestorsObserver analysis. Our proprietary scoring system considers the overall health of the company by looking at the stock's price, earnings, and growth rate to determine if it represents a good value. DEO holds a better value than 38% of stocks at its current price. Investors who are focused on long-term growth through buy-and-hold investing will find the Valuation Rank especially relevant when allocating their assets.
DEO's 12-month-forward PE to Growth (PEG) ratio of 2.46 is considered a poor value as the market is overvaluing DEO in relation to the company's projected earnings growth due. DEO's PEG comes from its forward price to earnings ratio being divided by its growth rate. A PEG ratio of 1 represents a perfect correlation between earnings growth and share price. Due to their incorporation of more fundamentals of a company's overall health and focusing on the future rather than the past, PEG ratios are one of the most used valuation metrics by analysts today.
Diageo plc (DEO) Stock: How Does it Score on Valuation Metrics?
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DEO gets a 38 Valuation Rank today. Find out what this means to you and get the rest of the rankings on DEO!