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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: 8.9 NZD 2.65% Market Closed
Market Cap: NZ$6.5B

EV/IC

9.9
Current
12%
More Expensive
vs 3-y average of 8.8

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
9.9
=
Enterprise Value
NZ$7.3B
/
Invested Capital
NZ$564.6m

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
9.9
=
Enterprise Value
NZ$7.3B
/
Invested Capital
NZ$564.6m

Valuation Scenarios

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

If EV/IC returns to its 3-Year Average (8.8), the stock would be worth NZ$7.93 (11% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-91%
Maximum Upside
No Upside Scenarios
Average Downside
51%
Scenario EV/IC Value Implied Price Upside/Downside
Current Multiple 9.9 NZ$8.9
0%
3-Year Average 8.8 NZ$7.93
-11%
5-Year Average 8.6 NZ$7.77
-13%
Industry Average 0.9 NZ$0.83
-91%
Country Average 1.2 NZ$1.06
-88%

Forward EV/IC
Today’s price vs future invested capital

Not enough data available to calculate forward EV/IC

Peer Comparison

All Multiples
EV/IC
P/E
All Countries
Close
Market Cap EV/IC P/E
NZ
A2 Milk Company Ltd
NZX:ATM
6.5B NZD 9.9 53.2
JP
Goyo Foods Industry Co Ltd
TSE:2230
53.2T JPY 27 042.7 540 752.8
CH
Nestle SA
SIX:NESN
203.3B CHF 2.4 22.5
US
Mondelez International Inc
NASDAQ:MDLZ
78.7B USD 1.6 32.1
FR
Danone SA
PAR:BN
42.7B EUR 1.5 23.5
ZA
Tiger Brands Ltd
JSE:TBS
47.6B ZAR 2.7 12.5
US
Hershey Co
NYSE:HSY
37B USD 3.5 41.9
CN
Muyuan Foods Co Ltd
SZSE:002714
244.2B CNY 2 25
ZA
Avi Ltd
JSE:AVI
33.1B ZAR 3.9 12.8
CN
Foshan Haitian Flavouring and Food Co Ltd
SSE:603288
225.7B CNY 13 32.1
CH
Chocoladefabriken Lindt & Spruengli AG
SIX:LISN
23.2B CHF 3 31.9

Market Distribution

Higher than 94% of companies in New Zealand
Percentile
94rd
Based on 232 companies
94rd percentile
9.9
Low
0.2 — 0.9
Typical Range
0.9 — 1.8
High
1.8 —
Distribution Statistics
New Zealand
Min 0.2
30th Percentile 0.9
Median 1.2
70th Percentile 1.8
Max 24.1

A2 Milk Company Ltd
Glance View

Market Cap
6.5B 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 15%
Intrinsic Value
Price NZ$8.9
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