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A2 Milk Company Ltd
NZX:ATM

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A2 Milk Company Ltd
NZX:ATM
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Price: 9.13 NZD 1.9% Market Closed
Market Cap: NZ$6.6B

EV/EBITDA

19.8
Current
4%
Cheaper
vs 3-y average of 20.6

Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBITDA
19.8
=
Enterprise Value
NZ$7.3B
/
EBITDA
NZ$290.5m

Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBITDA
19.8
=
Enterprise Value
NZ$7.3B
/
EBITDA
NZ$290.5m

Valuation Scenarios

A2 Milk Company Ltd is trading below its 3-year average

If EV/EBITDA returns to its 3-Year Average (20.6), the stock would be worth NZ$9.52 (4% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-41%
Maximum Upside
+8%
Average Downside
9%
Scenario EV/EBITDA Value Implied Price Upside/Downside
Current Multiple 19.8 NZ$9.13
0%
3-Year Average 20.6 NZ$9.52
+4%
5-Year Average 21.4 NZ$9.87
+8%
Industry Average 11.7 NZ$5.4
-41%
Country Average 18.3 NZ$8.45
-7%

Forward EV/EBITDA
Today’s price vs future ebitda

Today's Enterprise Value EBITDA Forward EV/EBITDA
NZ$7.3B
/
Jan 2026
NZ$290.5m
=
19.8
Current
NZ$7.3B
/
Jun 2026
NZ$327.9m
=
22.4
Forward
NZ$7.3B
/
Jun 2027
NZ$392.3m
=
18.7
Forward
NZ$7.3B
/
Jun 2028
NZ$464.8m
=
15.8
Forward

Forward EV/EBITDA shows whether today’s EV/EBITDA still looks high or low once future ebitda are taken into account.

Peer Comparison

All Multiples
EV/EBITDA
P/E
All Countries
Close
Market Cap EV/EBITDA P/E
NZ
A2 Milk Company Ltd
NZX:ATM
6.6B NZD 19.8 54.6
JP
Goyo Foods Industry Co Ltd
TSE:2230
53.2T JPY 186 542.5 540 752.8
CH
Nestle SA
SIX:NESN
205.8B CHF 14.1 23.2
US
Mondelez International Inc
NASDAQ:MDLZ
73.8B USD 18.3 30.1
FR
Danone SA
PAR:BN
43.3B EUR 9.8 23.8
ZA
Tiger Brands Ltd
JSE:TBS
48.7B ZAR 9.4 12.8
US
Hershey Co
NYSE:HSY
38.8B USD 21.3 44
CN
Muyuan Foods Co Ltd
SZSE:002714
237.6B CNY 22 24.3
CN
Foshan Haitian Flavouring and Food Co Ltd
SSE:603288
231.2B CNY 24.7 32.8
ZA
Avi Ltd
JSE:AVI
32.7B ZAR 8.6 12.7
CH
Chocoladefabriken Lindt & Spruengli AG
SIX:LISN
23.8B CHF 19.2 32.4

Market Distribution

In line with most companies in New Zealand
Percentile
53nd
Based on 199 companies
53nd percentile
19.8
Low
4.2 — 14.7
Typical Range
14.7 — 28.5
High
28.5 —
Distribution Statistics
New Zealand
Min 4.2
30th Percentile 14.7
Median 18.3
70th Percentile 28.5
Max 518.2

A2 Milk Company Ltd
Glance View

Market Cap
6.6B NZD
Industry
Food Products

A2 Milk Company Ltd, hailing from New Zealand, has carved out a unique niche within the global dairy industry by revolutionizing the way people perceive and consume milk. Founded in 2000 by Dr. Corran McLachlan and Howard Paterson, the company diverged from traditional dairy producers by focusing exclusively on milk that contains only the A2 beta-casein protein. The science behind this innovation is grounded in research suggesting that A2 milk could offer digestive benefits for those sensitive to the more common A1 protein found in most cow's milk. This unique selling proposition allowed A2 Milk to position itself as a premium product, catering to health-conscious consumers and those seeking alternatives to regular dairy products. Through rigorous marketing and strategic product differentiation, A2 Milk expanded its footprint into major markets such as Australia, China, and the United States, establishing itself as a global player. The company's business model is strategically designed around branding and supply chain efficiency. A2 Milk operates by partnering with dairy farmers who specifically breed cows that produce only the A2 protein, ensuring authenticity and consistency in their product offerings. This approach not only supports a robust supply chain but also fosters strong relationships with suppliers and enhances quality control. A2 Milk generates revenue primarily through the sale of fresh milk, infant formula, milk powder, and other related dairy products. This portfolio diversification helps mitigate risks and tap into various customer segments. Moreover, A2 Milk's success lies in its ability to leverage strategic partnerships, innovative marketing, and consumer trust to maintain its competitive edge in the niche market, attracting both loyal customers and investors alike.

ATM Intrinsic Value
7.58 NZD
Overvaluation 17%
Intrinsic Value
Price NZ$9.13
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