Added to YB: 2026-08-18
Pitch date: 2026-08-14
DEO [neutral]
Diageo plc
-1.98%
current return
Author Info
No bio for this author
Company Info
Diageo plc, together with its subsidiaries, engages in the production, marketing, and distribution of alcoholic beverages in North America, Europe, the Asia Pacific, Latin America and Caribbean, and Africa.
Market Cap
GBP 53.1B
Pitch Price
GBP 93.67
Price Target
N/A
Dividend
2.09%
EV/EBITDA
10.64
P/E
30.68
EV/Sales
3.87
Sector
Beverages
Category
value
Diageo: What Changes, What Doesn't
DEO (overview): Spirits giant at ~1,790p, 14x P/E (hist range 12-30x). Earnings -18% from FY22 peak but shares -56% since Dec 2021; back to 2006 levels. FY26 FCF $3.2bn (+$463m), 87% conversion. First-ever dividend cut. Bull: near-trough multiple, cash intact 29yrs. Bear: moderation may be structural (UBS models 1.3% US growth), not cyclical—mgmt 4/4 on prior 'cyclical' calls but demand now permanently lower. New Lewis plan forecasts execution vs 2021's market forecast.
Read full article (6 min)