Diageo acquired some of the Seagram assets in 2001, which gave it brands such as Captain Morgan rum and Crown Royal Canadian whisky. Since then, mergers and acquisitions have mostly been bolt-on in nature, plugging gaps in the company's product and geographic portfolio.
We grade stocks based on past performance, their future growth potential, intrinsic value, dividend history, and overall financial health.
The chart below shows how we grade Diageo (DEO) across the board compared to its closest peers.
Benzinga Edge stock rankings give you four critical scores to help you identify the strongest and weakest stocks to buy and sell.
27
Growth measures a stock's combined historical expansion in earnings and revenue across multiple time periods, with emphasis on both long-term trends and recent performance.
33.36
Value is a percentile-ranked composite metric that evaluates a stock's relative worth by comparing its market price to fundamental measures of the company's assets, earnings, sales, and operating performance.
9.56
Momentum measures a stock's relative strength based on its price movement patterns and volatility over multiple timeframes, ranked as a percentile against other stocks.
59.67
Quality is a composite ranking that evaluates a company's operational efficiency and financial health by analyzing historical profitability metrics and fundamental strength indicators on a percentile basis relative to peers.
See how Diageo compares to its peers in these key performance metrics from Benzinga Rankings.
The two main factors that we consider when analyzing past performance is overall return and volatility
Using these two metrics, we can determine if this stock gave its investors enough return for the risk that they took on by owning it. This is measured by the sharpe ratio, which has been used as a primary measure of risk/reward trade-off for almost 60 years.
This ratio can be interpreted as the amount of return an investor has received for the amount of risk that they took on by owning the stock over that timeframe.
Diageo (DEO) sharpe ratio over the past 5 years is -1.3017 which is considered to be below average compared to the peer average of -0.7299
Based on our data, DEO's options trades have recently carried more negative sentiment than positive.
