How to buy Diageo shares | 05 March price 2941.5p

How to buy Diageo shares | 2941.5p

Own Diageo shares in just a few minutes. Share price changes are updated daily.

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Diageo logo

The coronavirus outbreak has forced pubs and bars to close in the UK, which will likely have an affect on alcoholic beverage sales. As a result, the Diageo share price has been impacted, but some investors may see this as a good time to buy Diageo stock. Diageo plc (LON: DGE) is a multinational alcoholic beverages company based in the UK. It is the world’s second largest distiller, and owns brands including Smirnoff, Johnnie Walker, Guinness and Gordon’s.

How to buy shares in Diageo

  1. Choose a platform. If you're a beginner, our share-dealing table below can help you choose.
  2. Open your account. You'll need your ID, bank details and national insurance number.
  3. Confirm your payment details. You'll need to fund your account with a bank transfer, debit card or credit card.
  4. Search the platform for stock code: DGE in this case.
  5. Research Diageo shares. The platform should provide the latest information available.
  6. Buy your Diageo shares. It's that simple.
The whole process can take as little as 15 minutes.

Diageo share price

Use our graph to track the performance of DGE stocks over time.

Diageo shares at a glance

Information last updated 2021-03-05.
Open2922p
High2958p
Low2867.6836p
Close2941.5p
Previous close2933.5p
Change 8p
Change % 0.2727%
Volume 2,952,523
Information last updated 2021-03-03.
52-week range1998.7447p - 3061.228p
50-day moving average 2953.4143p
200-day moving average 2801.9006p
Wall St. target price2916.05p
PE ratio 59.7083
Dividend yield 0.704p (0.02%)
Earnings per share (TTM) 48p
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Fees for buying 10x Diageo shares with popular platforms

Share prices fluctuate in real time, so the costs presented here should be considered as a guide only. They do not incorporate stamp duty. Always refer to the platform itself for availability and pricing – which may differ from our information.

Platform Platform fee Min. initial deposit Trading fee estimate
Fineco logo £0 No minimum £2.95
£297.10 total
Capital at risk
eToro Free Stocks logo £0 $500 £0.00
£294.15 total
Capital at risk
Degiro Share Dealing logo £0 £0.01 £1.79
£295.94 total
Capital at risk
Hargreaves Lansdown Fund and Share Account logo £0 £1 £11.95
£306.10 total
Capital at risk
interactive investor Trading Account logo £9.99 per month No minimum £7.99
£302.14 total
Capital at risk
Halifax Share Dealing Account logo £0 £20 £12.50
£306.65 total
Capital at risk

Full comparison of share dealing platforms

All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.

Is it a good time to buy Diageo stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

Diageo price performance over time

Historical closes compared with the last close of 2941.5p

1 month (2021-02-08) -0.98%

Is Diageo under- or over-valued?

Valuing Diageo stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Diageo's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Diageo's P/E ratio

Diageo's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 60x. In other words, Diageo shares trade at around 60x recent earnings.

That's relatively high compared to, say, the trailing 12-month P/E ratio for the FTSE 250 at the end of September 2019 (19.71). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.

However, Diageo's P/E ratio is best considered in relation to those of others within the beverages-wineries & distilleries industry or those of similar companies.

Diageo's PEG ratio

Diageo's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.1901. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Diageo's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

However, it's sensible to consider Diageo's PEG ratio in relation to those of similar companies.

Diageo's EBITDA

Diageo's EBITDA (earnings before interest, taxes, depreciation and amortisation) is a whopping £3.6 billion.

The EBITDA is a measure of a Diageo's overall financial performance and is widely used to measure a its profitability.

To put Diageo's EBITDA into context you can compare it against that of similar companies.

Diageo financials

Revenue TTM £11.4 billion
Operating margin TTM 28.43%
Gross profit TTM £7.1 billion
Return on assets TTM 6.29%
Return on equity TTM 13.41%
Profit margin 9.84%
Book value 2.919p
Market capitalisation £67.1 billion

TTM: trailing 12 months

Diageo's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Diageo.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Diageo's total ESG risk score

Total ESG risk: 14.15

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Diageo's overall score of 14.15 (as at 01/01/2019) is excellent – landing it in it in the 8th percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Diageo is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

To gain some more context, you can compare Diageo's total ESG risk score against those of similar companies.

Diageo's environmental score

Environmental score: 0.95/100

Diageo's social score

Social score: 2.78/100

Diageo's governance score

Governance score: 5.42/100

Diageo's controversy score

Controversy score: 3/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. A high-profile company, Diageo scored a 3 out of 5 for controversy – a middle-of-the-table result reflecting that Diageo hasn't always managed to keep its nose clean.

Wondering how that compares? Below are the controversy scores of similar companies.

Environmental, social, and governance (ESG) summary

Diageo plc was last rated for ESG on: 2019-01-01.

Total ESG score 14.15
Total ESG percentile 8.44
Environmental score 0.95
Social score 2.78
Governance score 5.42
Level of controversy 3

Diageo share dividends

Dividend payout ratio: 14985.11% of net profits

Recently Diageo has paid out, on average, around 14985.11% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 2.45% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Diageo shareholders could enjoy a 2.45% return on their shares, in the form of dividend payments. In Diageo's case, that would currently equate to about 0.704p per share.

Diageo's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.

The latest dividend was paid out to all shareholders who bought their shares by 25 February 2021 (the "ex-dividend date").

Diageo's dividend payout ratio is perhaps best considered in relation to those of similar companies.

Have Diageo's shares ever split?

Diageo's shares were split on a 1136:1000 basis on 2 February 1998. So if you had owned 1000 shares the day before before the split, the next day you'd have owned 1136 shares. This wouldn't directly have changed the overall worth of your Diageo shares – just the quantity. However, indirectly, the new 12% lower share price could have impacted the market appetite for Diageo shares which in turn could have impacted Diageo's share price.

Diageo share price volatility

Over the last 12 months, Diageo's shares have ranged in value from as little as 1998.7447p up to 3061.228p. A popular way to gauge a stock's volatility is its "beta".

Beta is a measure of a share's volatility in relation to the market. The market (LSE average) beta is 1, while Diageo's is 0.3989. This would suggest that Diageo's shares are less volatile than average (for this exchange).

To put Diageo's beta into context you can compare it against those of similar companies.

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Diageo overview

Diageo plc, together with its subsidiaries, produces, markets, and sells alcoholic beverages. The company offers scotch, whisky, gin, vodka, rum, ready to drink products, Irish cream liqueur, raki, liqueur, wine, tequila, Canadian whisky, American whiskey, adult beverages, cachaça, spirits, and brandy, as well as beer, including cider and non-alcoholic products. Diageo plc provides its products primarily under the Johnnie Walker, Smirnoff, Baileys, Captain Morgan, Tanqueray, and Guinness brands. The company also offers its products under the Crown Royal, Yenì Raki, Shui Jing Fang, Johnnie Walker Blue Label, Bulleit Bourbon, Don Julio, Buchanan's, J?B, Old Parr, Tanqueray No. TEN, Ron Zacapa Centenario XO, Casamigos, Bundaberg, McDowell's No. 1, Ypióca, Lagavulin, The Singleton of Glen Ord, Johnnie Walker Gold Label Reserve, Windsor, Black&White, Cîroc, Ketel One vodka, and Talisker brands. It has operations in North America, Europe, Turkey, Africa, Latin America, the Caribbean, the Asia Pacific, and internationally. The company was incorporated in 1886 and is headquartered in London, the United Kingdom.

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