Diageo plc Common Stock (DEO)

FairStock Score: 34/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Diageo is a global seller of beer, scotch, gin, vodka, tequila, wine and other drinks, with brands that give it some pricing power. As a consumer-defensive business, it should be less cyclical, and the 0.32 beta supports that. Return on equity is a respectable 14.99%, and the 2.34% dividend yield offers a modest cash return. But I am cautious. At the 2026-10-13 close of $90.43, the FairStock P/E is 28.98, while return on capital employed is only 7.48%. The balance sheet carries a debt-to-equity ratio of 1.71, and the Altman Z-Score of 1.26 sits in a worrying zone. The Piotroski F-Score is 0/9, which suggests weak fundamental momentum in the data provided. The biggest valuation red flag is the P/B of 83.73: the market is paying a huge premium to accounting book value. FairStock's Graham Number of $18.53 implies a margin of safety of -388.02%, meaning the price is far above a conservative asset-and-earnings value. The FairStock score is only 36/100. No Lynch category is assigned because there are only 0 years of filed results, while three are needed. Revenue and profit growth are not available, so I cannot judge the growth trajectory from these figures. This looks like a quality consumer franchise with a defensive demand profile, but the current price and leverage leave little room for disappointment. I would want more filed results and better balance-sheet and return metrics before calling it a bargain.

In plain English: Diageo sells alcoholic drinks around the world, including beer, scotch, gin, vodka, tequila, and wine. It has some defensive strengths, including a 2.34% dividend and low sensitivity to the market, but the financial checks look weak and the share price seems high compared with its accounting net worth and earnings-based value. The data is incomplete on growth.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer