Diageo Fair Value
DE
The fair market value of DEO stock is 5557.93 USD. Relative to the market price of 130.16 USD Diageo is undervalued by 4170.1%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
Diageo Valuation
Current DEO share ticker price is 130.16 USD.
The fair value level of 5557.93 USD can be considered as an effective entry point for long-term investors to start investing in DEO stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 16963% lower its fair value
Current price is 11095% lower its minimum value
Current price is 30658% lower its maximum value
Market price:
DEO stock is greatly undervalued
It means the current price may concern as a Low Risk Entry Point
Diageo PLC Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
44.48
2
Median P/E over 5 years
24.68
3
Minimum P/E over 5 years
16.19
4
Earning per share (last 12 months)
173.46 GBP
Maximum value
1
x
4
=
40 034.76 USD
Fair value
2
x
4
=
22 209.22 USD
Minimum value
3
x
4
=
14 571.42 USD
Diageo PLC price metrics
-3.7
Annual return (geometric mean)
24.08
Risk (standard deviation) of returns
β
0.7
Beta (volatility compared to market)