Rumors Of Diageo's Death Appear Greatly Exaggerated

  • Diageo's stock is significantly down from its 2021 highs, but its premium brands and strong margins remain intact, despite stagnant growth and high debt. The current valuation is historically attractive, trading at a discount at only 17.7x earnings and 3x sales, making it appealing for long-term investors. Concerns about Gen Z drinking less are overstated; premium brands like Guinness and Don Julio continue to drive organic growth and long-term value.