Diageo is currently fairly valued with a gap of 8.9% relative to the price target.
The current price is $93.12, which places Diageo in the fairly valued category. The stock is considered undervalued when the price is below $91.29, and overvalued when the price exceeds $111.57.
The fair value range is defined as ±10% of the price target, because price targets are estimates rather than exact values. For Diageo, the fair value range lies between $91.29 and $111.57.
8 analysts cover Diageo. The ratings are mixed, with 50% Buy, 25% Hold and 25% Sell. The average price target is $101.43, which gives an upside of 8.9% from the current price.
Diageo is classified as a dividend stock with a dividend of 3.8% and a payout ratio of 96%, which points to a sustainable dividend level.
Diageo trades at a P/E ratio of 20.5, which is close to the market average. The forward P/E is 13.2 (36% lower), which suggests the market expects rising earnings. The P/S ratio is 2.5. The P/B ratio is 4.2. The PEG ratio is 0.86 — below 1.0 suggests the stock is cheap relative to its growth rate.
Diageo has a profit margin of 12.2% (solid) and an operating margin of 31.3%. Return on equity (ROE) is 19.7% — solid return on equity. Return on assets (ROA) is 7.2%. The latest quarterly earnings grew 2.9% year over year.
The Piotroski score is 6 out of 9 — good financial health. Altman Z2 is 3.37 (healthy balance sheet — low risk). The debt-to-equity ratio (D/E) is 333.0% — high debt, which raises the risk.
Short interest is 0.72% — low, the market does not expect a decline.
Diageo pays dividends to its shareholders. The most recently paid dividend was 0.80 USD per share, which corresponds to a dividend yield of 3.77%. Over the last 5 years, the annual dividend has grown by 146.6%, which shows positive dividend growth.
The payout ratio is 95.6%, which is very high. The company pays out almost all of its profits as dividends, which can limit future growth and dividend stability.
We have registered dividend payments for Diageo since 2020-02-27. In that period the stock has paid a dividend 16 times, most recently on 2026-04-17. This stock qualifies as a stable dividend stock, because it has paid a dividend at least once a year for the last 5 years. That makes it attractive to investors looking for steady, regular dividend payments.
| Ex-date | Payment date | Amount | Currency | Period |
|---|---|---|---|---|
| 2026-04-17 | 2026-06-04 | 0.80 | USD | Unknown period |
| 2025-10-17 | 2025-12-04 | 2.52 | USD | Unknown period |
| 2025-02-28 | N/A | 1.62 | USD | Unknown period |
| 2025-02-28 | N/A | 1.62 | USD | Unknown period |
| 2025-02-28 | N/A | 1.62 | USD | Unknown period |
| 2025-02-28 | N/A | 1.62 | USD | Unknown period |
| 2024-08-30 | 2024-10-17 | 2.52 | USD | Unknown period |
| 2024-02-29 | 2024-04-17 | 1.62 | USD | Unknown period |
| 2023-08-24 | 2023-10-17 | 2.51 | USD | Unknown period |
| 2023-03-02 | 2023-04-18 | 1.53 | USD | Unknown period |
| 2022-08-25 | 2022-10-25 | 2.28 | USD | Unknown period |
| 2022-02-24 | 2022-04-12 | 1.57 | USD | Unknown period |
| 2021-08-26 | 2021-10-13 | 2.48 | USD | Unknown period |
| 2021-02-25 | 2021-04-13 | 1.54 | USD | Unknown period |
| 2020-08-13 | 2020-10-14 | 2.21 | USD | Unknown period |
| 2020-02-27 | 2020-04-14 | 1.44 | USD | Unknown period |
In 2026, insiders at Diageo have made 2 transactions, all of which were sales. On a net basis, insiders took 1,656,636,061 $ out of the stock. Active insiders include DIAGEO PLC.
There has been no insider trading in the last 3 months.
Insiders have exclusively sold shares in the recent period. This can suggest management sees limited opportunity.
Across the last 2 transactions: 0 purchases and 2 sales. A net 1,656,636,061 $ out of the stock.
Latest sale: DIAGEO PLC sold 33,314,760 shares at 44 $ each on 2004-10-08.
Who is selling: DIAGEO PLC.
The table shows the last 2 reported insider transactions in Diageo. Green rows are purchases, red rows are sales. The data is based on official filings.
| Transaction date | Name | Type | Number of shares | Price per share ($) | Total amount ($) |
|---|---|---|---|---|---|
| 2004-10-08 | DIAGEO PLC | Sell | 33,314,760 | 44 | 1,479,175,344 |
| 2004-10-04 | DIAGEO PLC | Sell | 3,996,863 | 44 | 177,460,717 |
The following insiders have sold shares: DIAGEO PLC. In total, 1,656,636,061 $ was sold across 2 transactions. Insider trades are legal transactions in which executives and board members buy or sell shares of their own company. These transactions are reported to the SEC and are publicly available.
Based on trend analysis (SMA50/SMA200) and MACD trend (positive/negative on a daily + weekly basis). Updated August 6, 2026.
Diageo plc is in a short-term uptrend. The price of $88.43 is 4.0% above the 20-day average ($85.05). Medium term, the picture is positive: the price is 6.8% above the 50-day average ($82.82). Long term, the stock is 3.6% above the 200-day average ($85.38), which confirms a long-term uptrend.
Death Cross: The 50-day average (82.82) is below the 200-day average (85.38), which is a classic bearish signal for Diageo plc.
Diageo plc has an RSI of 61.1. The stock shows positive momentum in the upper part of the neutral zone. Combined with the positive trend, this supports the bullish picture.
Daily MACD: MACD is positive (1.778), which means the short-term trend is bullish (the 12-day EMA is above the 26-day EMA). MACD is above the signal line (1.437) by 0.341, which confirms rising momentum in the uptrend.
Weekly MACD: MACD5 is negative (-0.711), which indicates a broader bearish long-term trend. MACD5 is above the signal line (-2.140) by 1.429, which suggests the negative long-term momentum is fading – a bigger trend reversal could be ahead.
Overall MACD assessment: The daily and weekly MACD give conflicting signals. The short-term trend is bullish, but the long-term trend is still bearish. Weekly momentum is rising, though, which could signal an upcoming trend reversal.
Diageo plc has an annual standard deviation of 32.4%, which classifies the stock as moderately low risk. There is some volatility, but the price is relatively stable.
Trend: Positive. The price trades above SMA50 and SMA200.
MACD trend (zero line): Daily bullish (1.778). Weekly bearish (-0.711).
MACD momentum (signal): Daily rising. Weekly rising.
RSI: 61.1 – neutral.
Technical signal: Buy
The broader trend is positive and MACD supports the picture. Consider buying with a stop-loss below the nearest support level.