Diageo Plc (Germany) Buy Hold or Sell Recommendation
| GUIA Stock | EUR 120.00 1.00 0.84% |
Assuming the 90 days trading horizon and your above-average risk tolerance, our recommendation regarding Diageo plc is 'Sell'. Macroaxis provides Diageo Plc buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding GUIA positions.
Check out Diageo Plc Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note, we conduct extensive research on individual companies such as Diageo and provide practical buy, sell, or hold advice based on investors' constraints. Diageo plc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.
Diageo |
Execute Diageo Plc Buy or Sell Advice
The Diageo recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Diageo plc. Macroaxis does not own or have any residual interests in Diageo plc or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Diageo Plc's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Sell
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
Diageo Plc Trading Alerts and Improvement Suggestions
| Diageo plc generated a negative expected return over the last 90 days | |
| Diageo plc has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations |
Diageo Plc Returns Distribution Density
The distribution of Diageo Plc's historical returns is an attempt to chart the uncertainty of Diageo Plc's future price movements. The chart of the probability distribution of Diageo Plc daily returns describes the distribution of returns around its average expected value. We use Diageo plc price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Diageo Plc returns is essential to provide solid investment advice for Diageo Plc.
| Mean Return | 0.03 | Value At Risk | -2.65 | Potential Upside | 3.25 | Standard Deviation | 1.86 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Diageo Plc historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Diageo Plc Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Diageo Plc or Consumer Defensive sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Diageo Plc's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Diageo stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.01 | |
β | Beta against Dow Jones | 0.23 | |
σ | Overall volatility | 1.85 | |
Ir | Information ratio | -0.008 |
Diageo Plc Volatility Alert
Diageo plc currently demonstrates below-average downside deviation. It has Information Ratio of -0.01 and Jensen Alpha of 0.01. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Diageo Plc's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Diageo Plc's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Diageo Plc Fundamentals Vs Peers
Comparing Diageo Plc's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Diageo Plc's direct or indirect competition across all of the common fundamentals between Diageo Plc and the related equities. This way, we can detect undervalued stocks with similar characteristics as Diageo Plc or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Diageo Plc's fundamental indicators could also be used in its relative valuation, which is a method of valuing Diageo Plc by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Diageo Plc to competition |
| Fundamentals | Diageo Plc | Peer Average |
| Return On Equity | 0.38 | -0.31 |
| Return On Asset | 0.0922 | -0.14 |
| Profit Margin | 0.21 % | (1.27) % |
| Operating Margin | 0.31 % | (5.51) % |
| Current Valuation | 115.92 B | 16.62 B |
| Shares Outstanding | 565.53 M | 571.82 M |
| Shares Owned By Institutions | 9.40 % | 39.21 % |
| Price To Earning | 22.80 X | 28.72 X |
| Price To Book | 11.01 X | 9.51 X |
| Price To Sales | 6.40 X | 11.42 X |
| Revenue | 15.45 B | 9.43 B |
| Gross Profit | 9.48 B | 27.38 B |
| EBITDA | 5.72 B | 3.9 B |
| Net Income | 3.25 B | 570.98 M |
| Cash And Equivalents | 1.19 B | 2.7 B |
| Cash Per Share | 1.93 X | 5.01 X |
| Total Debt | 14.5 B | 5.32 B |
| Debt To Equity | 125.00 % | 48.70 % |
| Current Ratio | 1.34 X | 2.16 X |
| Book Value Per Share | 14.32 X | 1.93 K |
| Cash Flow From Operations | 3.94 B | 971.22 M |
| Earnings Per Share | 7.09 X | 3.12 X |
| Price To Earnings To Growth | 2.21 X | 4.89 X |
| Target Price | 208.48 | |
| Number Of Employees | 28 K | 18.84 K |
| Beta | 0.37 | -0.15 |
| Market Capitalization | 91.05 B | 19.03 B |
| Total Asset | 36.52 B | 29.47 B |
| Z Score | 3.6 | 8.72 |
| Annual Yield | 0.02 % | |
| Five Year Return | 2.64 % | |
| Net Asset | 36.52 B | |
| Last Dividend Paid | 0.78 |
Diageo Plc Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Diageo . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Daily Balance Of Power | 9.2 T | |||
| Rate Of Daily Change | 1.01 | |||
| Day Median Price | 120.0 | |||
| Day Typical Price | 120.0 | |||
| Price Action Indicator | 0.5 | |||
| Period Momentum Indicator | 1.0 |
About Diageo Plc Buy or Sell Advice
When is the right time to buy or sell Diageo plc? Buying financial instruments such as Diageo Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Other Information on Investing in Diageo Stock
Diageo Plc financial ratios help investors to determine whether Diageo Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Diageo with respect to the benefits of owning Diageo Plc security.