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ABEV vs. DEO: Which Stock Is the Better Value Option?
ZACKSยท2025-10-27 16:41

Core Insights - Ambev (ABEV) is currently more attractive to value investors compared to Diageo (DEO) based on Zacks Rank and valuation metrics [1][2] Valuation Metrics - ABEV has a Zacks Rank of 2 (Buy), while DEO has a Zacks Rank of 4 (Sell), indicating a stronger earnings outlook for ABEV [2] - ABEV's forward P/E ratio is 12.51, compared to DEO's forward P/E of 14.44, suggesting ABEV is undervalued relative to DEO [4] - ABEV has a PEG ratio of 2.20, while DEO's PEG ratio is significantly higher at 4.26, indicating ABEV's expected earnings growth is more favorable [4] - ABEV's P/B ratio is 2.1, whereas DEO's P/B ratio is 4.06, further supporting ABEV's valuation advantage [5] - ABEV's overall Value grade is A, while DEO's Value grade is C, highlighting ABEV's superior valuation metrics [5]