Diageo Stock Market Value

DEO
 Stock
  

USD 190.24  0.01  0.005256%   

Diageo PLC's market value is the price at which a share of Diageo PLC stock trades on a public exchange. It measures the collective expectations of Diageo PLC ADR investors about the entity's future performance. With this module, you can estimate the performance of a buy and hold strategy of Diageo PLC ADR and determine expected loss or profit from investing in Diageo PLC over a given investment horizon. Continue to Diageo PLC Correlation, Diageo PLC Volatility and Diageo PLC Alpha and Beta module to complement your research on Diageo PLC.
Symbol


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 YOY
0.21
Market Capitalization
106.1 B
Quarterly Revenue Growth YOY
0.28
Return On Assets
0.0878
Return On Equity
0.37
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 Diageo PLC value 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.

Diageo PLC 'What if' Analysis

In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Diageo PLC's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Diageo PLC.
0.00
11/02/2022
No Change 0.00  0.0 
In 31 days
12/02/2022
0.00
If you would invest  0.00  in Diageo PLC on November 2, 2022 and sell it all today you would earn a total of 0.00 from holding Diageo PLC ADR or generate 0.0% return on investment in Diageo PLC over 30 days. Diageo PLC is related to or competes with GROWTH FUND, VANGUARD SMALL-CAP, and Alcoa Corp. Diageo plc, together with its subsidiaries, produces, markets, and sells alcoholic beverages More

Diageo PLC Upside/Downside Indicators

Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Diageo PLC's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Diageo PLC ADR upside and downside potential and time the market with a certain degree of confidence.

Diageo PLC Market Risk Indicators

Today, many novice investors tend to focus exclusively on investment returns with little concern for Diageo PLC's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Diageo PLC's standard deviation. In reality, there are many statistical measures that can use Diageo PLC historical prices to predict the future Diageo PLC's volatility.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Diageo PLC's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Diageo PLC in the context of predictive analytics.
Hype
Prediction
LowEstimated ValueHigh
188.67190.25191.83
Details
Intrinsic
Valuation
LowReal ValueHigh
171.23194.43196.01
Details
Naive
Forecast
LowNext ValueHigh
188.50190.08191.66
Details
8 Analysts
Consensus
LowTarget PriceHigh
225.00236.67249.00
Details
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Diageo PLC. Your research has to be compared to or analyzed against Diageo PLC's peers to derive any actionable benefits. When done correctly, Diageo PLC's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Diageo PLC ADR.

Diageo PLC ADR Backtested Returns

We consider Diageo PLC very steady. Diageo PLC ADR secures Sharpe Ratio (or Efficiency) of 0.0923, which denotes the company had 0.0923% of return per unit of standard deviation over the last 3 months. Our philosophy in predicting the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Diageo PLC ADR, which you can use to evaluate the future volatility of the firm. Please confirm Diageo PLC ADR Semi Deviation of 1.26, mean deviation of 1.13, and Downside Deviation of 1.43 to check if the risk estimate we provide is consistent with the expected return of 0.15%.
Diageo PLC has a performance score of 7 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 0.77, which means possible diversification benefits within a given portfolio. Let's try to break down what Diageo's beta means in this case. As returns on the market increase, Diageo PLC returns are expected to increase less than the market. However, during the bear market, the loss on holding Diageo PLC will be expected to be smaller as well. Although it is important to respect Diageo PLC ADR historical returns, it is better to be realistic regarding the information on the equity's current trending patterns. The philosophy in predicting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By reviewing Diageo PLC ADR technical indicators, you can presently evaluate if the expected return of 0.15% will be sustainable into the future. Diageo PLC ADR right now shows a risk of 1.67%. Please confirm Diageo PLC ADR value at risk, daily balance of power, and the relationship between the total risk alpha and expected short fall to decide if Diageo PLC ADR will be following its price patterns.

Auto-correlation

    
  0.68  

Good predictability

Diageo PLC ADR has good predictability. Overlapping area represents the amount of predictability between Diageo PLC time series from 2nd of November 2022 to 17th of November 2022 and 17th of November 2022 to 2nd of December 2022. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Diageo PLC ADR price movement. The serial correlation of 0.68 indicates that around 68.0% of current Diageo PLC price fluctuation can be explain by its past prices.
Correlation Coefficient0.68
Spearman Rank Test0.77
Residual Average0.0
Price Variance23.31

Diageo PLC ADR lagged returns against current returns

Autocorrelation, which is Diageo PLC stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Diageo PLC's stock expected returns. We can calculate the autocorrelation of Diageo PLC returns to help us make a trade decision. For example, suppose you find that Diageo PLC stock has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the stock movement to match the lagging time series.
   Current and Lagged Values   
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       Timeline  

Diageo PLC regressed lagged prices vs. current prices

Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Diageo PLC stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Diageo PLC stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Diageo PLC stock over time.
   Current vs Lagged Prices   
Share
       Timeline  

Diageo PLC Lagged Returns

When evaluating Diageo PLC's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Diageo PLC stock have on its future price. Diageo PLC autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Diageo PLC autocorrelation shows the relationship between Diageo PLC stock current value and its past values and can show if there is a momentum factor associated with investing in Diageo PLC ADR.
   Regressed Prices   
Share
       Timeline  

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 PLC

+0.86CELHCelsius Holdings Upward RallyPairCorr
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 equities. 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.
Pair CorrelationCorrelation Matching
Continue to Diageo PLC Correlation, Diageo PLC Volatility and Diageo PLC Alpha and Beta module to complement your research on Diageo PLC. 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.

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When running Diageo PLC ADR 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 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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Diageo PLC technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Diageo PLC technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Diageo PLC trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...