Diageo Plc Adr Stock Beta
| DEO Stock | USD 138.64 0.33 0.24% |
Diageo PLC ADR fundamentals help investors to digest information that contributes to Diageo PLC's financial success or failures. It also enables traders to predict the movement of Diageo Stock. The fundamental analysis module provides a way to measure Diageo PLC's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Diageo PLC stock.
Diageo | Beta |
Diageo PLC ADR Company Beta Analysis
Diageo PLC's Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Current Diageo PLC Beta | 0.32 |
Most of Diageo PLC's fundamental indicators, such as Beta, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Diageo PLC ADR is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Diageo Beta Driver Correlations
Understanding the fundamental principles of building solid financial models for Diageo PLC is extremely important. It helps to project a fair market value of Diageo Stock properly, considering its historical fundamentals such as Beta. Since Diageo PLC's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Diageo PLC's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Diageo PLC's interrelated accounts and indicators.
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In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
| Competition |
In accordance with the recently published financial statements, Diageo PLC ADR has a Beta of 0.322. This is 73.82% lower than that of the Beverages sector and significantly higher than that of the Consumer Staples industry. The beta for all United States stocks is notably lower than that of the firm.
Diageo Beta Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Diageo PLC's direct or indirect competition against its Beta to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Diageo PLC could also be used in its relative valuation, which is a method of valuing Diageo PLC by comparing valuation metrics of similar companies.Diageo PLC is currently under evaluation in beta category among related companies.
Diageo PLC Institutional Holders
Institutional Holdings refers to the ownership stake in Diageo PLC that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of Diageo PLC's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing Diageo PLC's value.| Shares | Brown Brothers Harriman & Co | 2023-12-31 | 1.1 M | Massachusetts Financial Services Company | 2023-12-31 | 1.1 M | Dimensional Fund Advisors, Inc. | 2023-12-31 | 856.9 K | Confluence Investment Management Llc | 2023-09-30 | 849.2 K | Fayez Sarofim & Company | 2023-12-31 | 802.9 K | Envestnet Asset Management Inc | 2023-12-31 | 753.6 K | Jarislowsky Fraser Ltd | 2023-12-31 | 720.1 K | Wellington Management Company Llp | 2023-12-31 | 677.5 K | Natixis Advisors, Llc. | 2023-12-31 | 645.6 K | Bank Of America Corp | 2023-12-31 | 4.4 M | Fmr Inc | 2023-12-31 | 3.6 M |
As returns on the market increase, Diageo PLC's returns are expected to increase less than the market. However, during the bear market, the loss of holding Diageo PLC is expected to be smaller as well.
Diageo Fundamentals
| Return On Equity | 0.36 | ||||
| Return On Asset | 0.0863 | ||||
| Profit Margin | 0.20 % | ||||
| Operating Margin | 0.32 % | ||||
| Current Valuation | 333.58 B | ||||
| Shares Outstanding | 556.01 M | ||||
| Shares Owned By Insiders | 0.06 % | ||||
| Shares Owned By Institutions | 10.05 % | ||||
| Number Of Shares Shorted | 494.6 K | ||||
| Price To Earning | 69.32 X | ||||
| Price To Book | 7.79 X | ||||
| Price To Sales | 3.62 X | ||||
| Revenue | 17.11 B | ||||
| Gross Profit | 10.21 B | ||||
| EBITDA | 5.66 B | ||||
| Net Income | 3.77 B | ||||
| Cash And Equivalents | 1.44 B | ||||
| Cash Per Share | 4.25 X | ||||
| Total Debt | 16.95 B | ||||
| Debt To Equity | 1.76 % | ||||
| Current Ratio | 1.53 X | ||||
| Book Value Per Share | 4.37 X | ||||
| Cash Flow From Operations | 3.02 B | ||||
| Short Ratio | 0.82 X | ||||
| Earnings Per Share | 7.47 X | ||||
| Price To Earnings To Growth | 1.61 X | ||||
| Target Price | 155.89 | ||||
| Number Of Employees | 30.27 K | ||||
| Beta | 0.32 | ||||
| Market Capitalization | 77.08 B | ||||
| Total Asset | 35.62 B | ||||
| Retained Earnings | 5.71 B | ||||
| Working Capital | 4.79 B | ||||
| Current Asset | 8.85 B | ||||
| Current Liabilities | 6.19 B | ||||
| Annual Yield | 0.03 % | ||||
| Five Year Return | 2.24 % | ||||
| Net Asset | 35.62 B | ||||
| Last Dividend Paid | 1.04 |
About Diageo PLC Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Diageo PLC ADR's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Diageo PLC using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Diageo PLC ADR based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Diageo PLC Investors Sentiment
The influence of Diageo PLC's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Diageo. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Diageo PLC's public news can be used to forecast risks associated with an investment in Diageo. The trend in average sentiment can be used to explain how an investor holding Diageo can time the market purely based on public headlines and social activities around Diageo PLC ADR. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Diageo PLC's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Diageo PLC's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Diageo PLC's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Diageo PLC.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Diageo PLC in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Diageo PLC's short interest history, or implied volatility extrapolated from Diageo PLC options trading.
Pair Trading with Diageo PLC
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Diageo PLC position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Diageo PLC will appreciate offsetting losses from the drop in the long position's value.Moving together with Diageo Stock
| 0.66 | WVVI | Willamette Valley | PairCorr |
Moving against Diageo Stock
| 0.69 | VDKB | Vodka Brands Corp | PairCorr |
The ability to find closely correlated positions to Diageo PLC could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Diageo PLC when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Diageo PLC - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Diageo PLC ADR to buy it.
The correlation of Diageo PLC is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Diageo PLC moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Diageo PLC ADR moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Diageo PLC can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Diageo PLC Piotroski F Score and Diageo PLC Altman Z Score analysis. Note that the Diageo PLC ADR information on this page should be used as a complementary analysis to other Diageo PLC's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Complementary Tools for Diageo Stock analysis
When running Diageo PLC's price analysis, check to measure Diageo PLC's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Diageo PLC is operating at the current time. Most of Diageo PLC's value examination focuses on studying past and present price action to predict the probability of Diageo PLC's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Diageo PLC's price. Additionally, you may evaluate how the addition of Diageo PLC to your portfolios can decrease your overall portfolio volatility.
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Is Diageo PLC's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Diageo PLC. If investors know Diageo will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Diageo PLC listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.17) | Dividend Share 1.038 | Earnings Share 7.47 | Revenue Per Share 2.137 | Quarterly Revenue Growth (0.01) |
The market value of Diageo PLC ADR is measured differently than its book value, which is the value of Diageo that is recorded on the company's balance sheet. Investors also form their own opinion of Diageo PLC's value that differs from its market value or its book value, called intrinsic value, which is Diageo PLC's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Diageo PLC's market value can be influenced by many factors that don't directly affect Diageo PLC's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Diageo PLC's value and its price as these two are different measures arrived at by different means. Investors typically determine if Diageo PLC is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Diageo PLC's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.