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Is Diageo plc(NYSE: DEO), a large market cap stock a smart buy?

With a market cap of has a large market cap size. Diageo plc (NYSE: DEO) has been on the stock market since its IPO date on the 5/13/1996. Diageo plc is in the Beverages – Wineries & Distillers industry and Consumer Goods sector. Average volume for Diageo plc, is 792.52, and so far today it has a volume of 629905. Performance year to date since the 5/13/1996 is 3.68%.

To help you determine whether Diageo plc is undervalued the following values will help you decide. P/E is 21.3 and forward P/E is 20.03. PEG perhaps more useful shows that Diageo plc has a value for PEG of 4.53. P/S ratio is 4.99 and the P/B ratio is 6.45. The P/Cash and P/Free cash flow is 68.87 and 81.62 respectively.

At the current price Diageo plc is trading at, 112.67 (0.89% today), Diageo plc has a dividend yield of 2.27%, and this is covered by a payout ratio of 58.20%. Earnings per share (EPS) is 5.24, and this is looking to grow in the next year to -16.13% after growing 2.10% this past year. EPS growth quarter over quarter is -17.20%, and -5.50% for sales growth quarter over quarter.

The number of shares outstanding is 626.75, and the number of shares float is 625.78. The senior management bring insider ownership to 0.70%, and institutional ownership is at 11.80%. The float short is 0.34%, with the short ratio at a value of 2.67. Management has seen a return on assets of 9.60%, and also a return on investment of 15.40%.

The ability for Diageo plc, to deal with debt, means it current ratio is 1.5, and quick ratio is 0.8. Long term debt/equity is 1.03 and total debt/equity is 1.28. In terms of margins, Diageo plc has a gross margin of 57.60%, with its operating margin at 30.70%, and Diageo plc has a profit margin of 23.50%.

The 52 week high is -3.61%, with 13.95% being its 52 week low. The 20 day simple moving average is 3.37% and the 200 day simple moving average is 3.78%.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.


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Stephen Butters

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