Value Sense
DEO
Diageo plc (DEO)
Last Price$109.20.3%
Market Cap$61.5B
LTM EPS
£3.02
EPS growth
391.2%
Ben Graham Fair Value
$2,592.9
Undervalued (Ben Graham formula)
2,275.6%
Stock quality
6/10
Good
DEO
is 62.7% undervalued
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DEO Ben Graham Fair Value

Ben Graham Fair Value
Ben Graham Revised Fair Value

Ben Graham Fair Value Assumptions

as of Mar 10, 2025
EPS
£3.02
P/E Base for no-growth company
8.5x
EPS growth
391.2%
Average Yield of AAA Corporate Bonds
4.4%
Current Yield of AAA Corporate Bonds
5.1%
Last share price
$109.2
Ben Graham Fair Value (local)
£2,048.6
Ben Graham Fair Value
$2,592.9
2275.6% undervalued

Ben Graham Fair Value Calculation

EPS
£3.02
x
(
P/E base for no-growth
8.5x
+
2
x
EPS growth
391.2%
)
x
Average AAA
Bond Yield
4.4%
/
Current AAA Bond Yield
5.1%
=
Ben Graham Fair Value
$2,592.9

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DEO EPS growth & Dividend Yield

Annual
Quarterly
LTM
Industry Median
5Y Historical Average
Benchmark
EPS growth
Dividend Yield

DEO vs Peer Set: Ben Graham Fair Value Comparison

Ben Graham Fair Value
Ben Graham Revised Fair Value

GENERAL

BEN GRAHAM FAIR VALUE

FINANCIALS

Company name

Undervaluation / Overvaluation

Revenue growth

EPS growth

Net Income margin

Diageo plc logo
Diageo plcDEO
2,275.6%
(1.6%)
(13.2%)
24.0%
Median Peer Set
1.7%
0.4%
12.8%
LQR House Inc. logo
LQR House Inc.LQR
6,118,266,704.8%
86.4%
9,905.9%
(1,405.3%)
Vintage Wine Estates, Inc. logo
Vintage Wine Estates, Inc.VWE
6,684,920.8%
(3.6%)
28,471.4%
(66.7%)
Eastside Distilling, Inc. logo
Eastside Distilling, Inc.EAST
53,755.8%
(24.4%)
(67.1%)
(71.8%)
ATA Creativity Global logo
ATA Creativity GlobalAACG
13,688.8%
1.7%
(33.9%)
(15.2%)
The Duckhorn Portfolio, Inc. logo
The Duckhorn Portfolio, Inc.NAPA
201.8%
0.6%
(25.0%)
13.8%
Constellation Brands, Inc. logo
Constellation Brands, Inc.STZ
75.6%
5.4%
N/A
17.3%
MGP Ingredients, Inc. logo
MGP Ingredients, Inc.MGPI
57.2%
6.9%
(2.4%)
12.8%
Ambev S.A. logo
Ambev S.A.ABEV
48.1%
3.3%
3.3%
18.2%
Brown-Forman Corporation logo
Brown-Forman CorporationBF-B
(239.0%)
(1.2%)
31.1%
24.5%

Explore more intrinsic value tools hub for DEO

Peter Lynch Fair Value
Reverse DCF
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Earnings Power Value
Discount rate
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Intrinsic Value
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DCF value calculator
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FAQ

What is Diageo plc's fair value according to the Ben Graham formula?

As of Jun 30, 2024, Diageo plc's fair value using the Ben Graham formula is $2,592.9 per share. This is calculated using Ben Graham formula, where EPS is £3.0 and BVPS (Book Value Per Share) is £5.3. The current price of $109.2 suggests Diageo plc may be overvalued by this conservative metric.

What is Diageo plc earnings per share (EPS)?

Diageo plc earnings per share (EPS) for the twelve months ending Jun 30, 2024, was £3.0, a 391.2% growth year-over-year.

What is Diageo plc's margin of safety based on the Ben Graham analysis?

Diageo plc's margin of safety is positive 2,275.6%, calculated as (Graham Number - Current Price) / Current Price. A negative margin of safety suggests the stock doesn't provide the level of safety Graham typically sought in his investments.