Diageo plc — Beverages - Wineries & Distilleries. Scored on the same transparent 7-signal model behind the daily rankings.
★
DEO
Diageo plc · Beverages - Wineries & Distilleries
FCF——
Rev+4.8%C+
D/E1.77C
P/E18.6xB+
PEG0.80A-
75.7Score
$80.61$44.8B
1Y Target$100.43Analyst consensus · 7 analysts
5Y Target$147.04Compound horizon
10Y Target$218.12Long-dated conviction
FCF——
FCF not applicable for this sector (bank / insurer / REIT) or data unavailable
Rev+4.8%TTM YoYC+
Revenue +4.8% — steady but below market-beating range
D/E1.77C
D/E 1.77 — more levered than most Consumer Defensive peers (≈90th pctile)
P/E18.6xB+
P/E 18.6 — below the Consumer Defensive median (≈40th pctile)
PEG0.80A-
PEG 0.80 — strong; Lynch's preferred zone
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 75.7
Quality0.74
Growth0.66
Value0.89
Why this score
Durable high returns
Cut its dividend
Entry · Margin of safety
52-week rangeNear 52-week low
31% off the 12-month high
Quality signals · context only
Gross profitability47% · A-gross profit ÷ total assets (Novy-Marx)
ROIC14.7% · B+return on invested capital — not score-weighted
Why now
Beverages - Wineries & Distilleries · market cap $44.8b. Down 31% from 52-week high of $116.41 — deep drawdown territory. PEG 0.80 — paying under fair value for the growth rate. 7 sell-side analysts rate this a Buy with a mean 1-yr target of $100.43 (implying +25% upside).
Moat
Net margin 16% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 41% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which.
Risk
Down 31% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Dividend payout 96% of earnings on a 4.0% yield — distribution coverage is thin; one earnings stumble could force a dividend cut.
Horizon
1-3 yr $100.43 (7-analyst consensus) — fundamentals + valuation re-rating. 5 yr $147.04 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $218.12 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Position sizing · DEO
$
%
%
Shares to buy
24
Position size
$1,935
3.9% of portfolio
Stop price
$60.46
25% below $80.61
$ at risk if stopped
$483.66
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
Diageo plc (DEO): score, valuation & FAQ
Diageo plc (DEO) is a Beverages - Wineries & Distilleries company that scores 75.7 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are PEG (A-) and P/E (B+).
Is DEO a good stock to buy?
Bull Rankings scores DEO 75.7 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by PEG (A-) and P/E (B+). A score is a quantitative screen of Diageo plc's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does DEO score 75.7 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). DEO earns its highest marks on PEG (A-) and P/E (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is DEO overvalued or undervalued?
We don't compute a reliable discounted-cash-flow value for DEO — typically because it is not yet consistently profitable or free-cash-flow positive — so its valuation rests on growth and price-to-sales rather than on earnings-based intrinsic value. Judge it on the trajectory of the business, not a single multiple.
What are the main risks of investing in DEO?
Down 31% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Dividend payout 96% of earnings on a 4.0% yield — distribution coverage is thin; one earnings stumble could force a dividend cut.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.