Diageo (LSE:DGE): Is the Drinks Giant Undervalued After Recent Share Price Movement?

Diageo Share Price Movement and Investor Sentiment

Shares of Diageo (LSE:DGE) have experienced some recent fluctuations, capturing the interest of investors monitoring its performance after months of mixed returns. This year, Diageo’s share price declined by nearly 30%, with a slight recovery only partially offsetting the sharp drops earlier in 2024.

Performance Metrics

The 1-year total shareholder return stands at -18.8%, indicating subdued momentum as investors assess combined growth challenges and emerging risks.

Valuation and Market Outlook

Despite the share price trading significantly below analyst target prices, with the current value at £17.98 compared to a consensus fair value of £23.48, the question remains if Diageo is undervalued or if the market already prices in its prospects, limiting potential upside.

Strategic Focus

Diageo is increasingly emphasizing premiumization and expanding into new categories, especially

to leverage rising consumer wealth and stronger brand preferences across both emerging and developed markets.

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Summary

Diageo faces a complex outlook with significant share price declines, but its focus on premium categories may offer long-term growth opportunities amid evolving market dynamics.

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Simply Wall Street Simply Wall Street — 2025-11-06

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