Earnings Review · 07 August 2026
Diageo Had a Strong Quarter. Why a Values-Conscious Book Still Steps Aside.
The print
Results are in but not yet verified against a primary source in our ledger; this review updates the moment the audited figures land. What does not change is our read below.
Give the business its due
The business itself is genuinely strong: revenue growing about -4%, net margins near 12%, a narrow competitive moat.
The valuation lens
Our framework labels the valuation n/a. Fair value lands near $113 against a $88 share price, a margin of safety of about 28%. The trailing multiple sits around 20 times earnings, which only makes sense if the growth holds.
The ethical lens, our differentiator
Fails the principled screen, Excluded industry: Beverages – Wineries & Distilleries. A strong business is not the same as a suitable one; for a values-conscious book this is a do-not-chase regardless of the print.
The compliant alternative
There is no direct compliant equivalent in the same industry on our screen, the honest answer is to screen a step wider rather than reach for a false substitute.
The verdict for a values-conscious investor
A beat-and-raise does not change the screen. This is a great company you can admire without owning, protection first. We do not confuse a strong quarter with a suitable holding.
This is analysis, not financial advice. Always manage your risk.