Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Diageo plc (DGE.L)

Company Dividend Discount ModelIndustry: Beverages - Wineries & DistilleriesSector: Consumer Defensive

Valuation Snapshot

Stable Growth$467.57 - $550.94$516.28
Multi-Stage$138.80 - $152.10$145.32
Blended Fair Value$330.80
Current Price$18.28
Upside1,709.64%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS6.90%5.53%1.031.000.920.930.740.740.730.710.680.65
YoY Growth--2.50%8.57%-0.90%26.59%0.00%1.42%2.66%4.36%4.99%7.61%
Dividend Yield--5.62%4.04%2.73%2.64%2.13%2.75%2.15%2.60%2.99%3.09%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)6,227.60
(-) Cash Dividends Paid (M)4,540.00
(=) Cash Retained (M)1,687.60
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,245.52778.45467.07
Cash Retained (M)1,687.601,687.601,687.60
(-) Cash Required (M)-1,245.52-778.45-467.07
(=) Excess Retained (M)442.08909.151,220.53
(/) Shares Outstanding (M)2,235.502,235.502,235.50
(=) Excess Retained per Share0.200.410.55
LTM Dividend per Share2.032.032.03
(+) Excess Retained per Share0.200.410.55
(=) Adjusted Dividend2.232.442.58
WACC / Discount Rate5.07%5.07%5.07%
Growth Rate4.90%5.90%6.90%
Fair Value$467.57$516.28$550.94
Upside / Downside2,457.83%2,724.30%2,913.88%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)6,227.606,595.136,984.347,396.537,833.048,295.318,544.17
Payout Ratio72.90%76.32%79.74%83.16%86.58%90.00%92.50%
Projected Dividends (M)4,540.005,033.475,569.376,150.996,781.867,465.787,903.36

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate5.07%5.07%5.07%
Growth Rate4.90%5.90%6.90%
Year 1 PV (M)4,745.404,790.644,835.87
Year 2 PV (M)4,950.135,044.965,140.69
Year 3 PV (M)5,154.205,303.025,454.66
Year 4 PV (M)5,357.615,564.845,778.03
Year 5 PV (M)5,560.365,830.496,111.01
PV of Terminal Value (M)284,515.94298,338.06312,692.22
Equity Value (M)310,283.65324,872.00340,012.49
Shares Outstanding (M)2,235.502,235.502,235.50
Fair Value$138.80$145.32$152.10
Upside / Downside659.29%694.99%732.04%

High-Yield Dividend Screener

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