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The a2 Milk CoASX:A2M -1.70%83 Cyclically Adjusted PS Ratio is 3.77 as of Jul. 15, 2026, which is 52% below its 10-year median of 7.91. GuruFocus rates ASX:A2M with a GF Score™ of 83/100 and a GF Value™ of A$6.69 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,445 Consumer Packaged Goods companies, The a2 Milk Co ranks worse than 89.9% on this metric.
The historical rank and industry rank for The a2 Milk Co's Cyclically Adjusted PS Ratio or its related term are showing as below:
ASX:A2M'
s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 2.82 Med: 7.91 Max: 53.08
Current: 3.77
During the past 13 years, The a2 Milk Co's highest Cyclically Adjusted PS Ratio was 53.08. The lowest was 2.82. And the median was 7.91.
ASX:A2M's Cyclically Adjusted PS Ratio is ranked worse than 89.9% of 1445
companies
in the Consumer Packaged Goods industry
Industry Median: 0.76
vs ASX:A2M: 3.77
The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.
The a2 Milk Co's adjusted revenue per share data of for the fiscal year that ended in Jun25 was A$2.418. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is A$1.84 for the trailing ten years ended in Jun25.
Shiller PE for Stocks: The True Measure of Stock Valuation
The a2 Milk Co (ASX:A2M) Cyclically Adjusted PS Ratio Explanation
Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue during business cycles. Therefore it is more accurate in reflecting the valuation of the company.
If a company has consistent business performance, the Cyclically Adjusted PS Ratio should give similar results to regular PS Ratio.
The a2 Milk Co Cyclically Adjusted PS Ratio Related Terms
The a2 Milk Co Cyclically Adjusted PS Ratio Historical Data
* Premium members only.
The historical data trend for The a2 Milk Co's Cyclically Adjusted PS Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ASX:A2M vs KHC, GIS: Cyclically Adjusted PS Ratio Comparison
For the Packaged Foods subindustry, The a2 Milk Co's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The a2 Milk Co Cyclically Adjusted PS Ratio vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The a2 Milk Co's Cyclically Adjusted PS Ratio distribution charts can be found below:
* The bar in red indicates where The a2 Milk Co's Cyclically Adjusted PS Ratio falls into.
The a2 Milk Co Cyclically Adjusted PS Ratio Calculation
Like the Shiller PE Ratio, the Cyclically Adjusted PS Ratio takes the Revenue per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/S calculation. Because it considers this 10-year average, it's often referred to as the CAPS Ratio.
The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio.
The a2 Milk Co's Cyclically Adjusted PS Ratio for today is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.
What does a Cyclically Adjusted PS Ratio of 3.77 mean?
The a2 Milk Co (ASX:A2M) has a Cyclically Adjusted PS Ratio of 3.77 as of Jul. 15, 2026. Cyclically Adjusted PS Ratio is the ratio of share price to a company's inflation-adjusted revenue per share over a 10-year period. View historical data on The a2 Milk Co and its competitors. This is 52% below median its historical median of 7.91. Over the past decade, The a2 Milk Co's Cyclically Adjusted PS Ratio has ranged from 2.82 to 53.08. According to the industry distribution chart, The a2 Milk Co ranks #1299 out of 1445 companies in the Consumer Packaged Goods industry, placing it in the top 89.9%.
Is The a2 Milk Co's Cyclically Adjusted PS Ratio too high?
The a2 Milk Co's current Cyclically Adjusted PS Ratio of 3.77 is 52% below median its 10-year median of 7.91. Over the past 10 years, this metric has ranged from a low of 2.82 to a high of 53.08. The Consumer Packaged Goods industry median Cyclically Adjusted PS Ratio is 0.76. The a2 Milk Co's value of 3.77 is 396.1% above this industry median. Based on the distribution chart, The a2 Milk Co ranks #1299 out of 1445 companies in the Consumer Packaged Goods industry, which is in the bottom quartile relative to peers. Overall, The a2 Milk Co has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does The a2 Milk Co's Cyclically Adjusted PS Ratio compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, The a2 Milk Co ranks #1299 out of 1445 companies for Cyclically Adjusted PS Ratio. This places The a2 Milk Co in the lower half of its industry. The industry median Cyclically Adjusted PS Ratio is 0.76. The a2 Milk Co's value of 3.77 is 396.1% above this benchmark. Historically, The a2 Milk Co's own Cyclically Adjusted PS Ratio has ranged from 2.82 to 53.08 over the past decade. While the company's 10-year median is 7.91 vs. the industry median of 0.76, The a2 Milk Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cyclically Adjusted PS Ratio for a Consumer Packaged Goods company?
The median Cyclically Adjusted PS Ratio among Consumer Packaged Goods companies is 0.76, based on 1,445 companies in the industry. Companies in the top quartile (top 25%) have a Cyclically Adjusted PS Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cyclically Adjusted PS Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The a2 Milk Co's current Cyclically Adjusted PS Ratio of 3.77 is 396.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cyclically Adjusted PS Ratio mean?
A high Cyclically Adjusted PS Ratio can signal that a stock is expensive relative to its fundamentals. Cyclically Adjusted PS Ratio is the ratio of share price to a company's inflation-adjusted revenue per share over a 10-year period. View historical data on The a2 Milk Co and its competitors. For the Consumer Packaged Goods industry, the median Cyclically Adjusted PS Ratio is 0.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The a2 Milk Co's current Cyclically Adjusted PS Ratio is 3.77, which is 52% below median its own 10-year median of 7.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The a2 Milk Co stock overvalued right now?
Based on GuruFocus' analysis, The a2 Milk Co (ASX:A2M) is currently considered Fairly Valued. The stock's GF Value™ is A$6.69, compared to a current price of A$6.93 — trading 3.6% above its estimated fair value. The current Cyclically Adjusted PS Ratio is 3.77, which is 52% below median its 10-year median of 7.91 and 396.1% above the Consumer Packaged Goods industry median of 0.76. The a2 Milk Co's overall GF Score™ is 83/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cyclically Adjusted PS Ratio calculated?
Cyclically Adjusted PS Ratio is calculated from a company's financial statements. For The a2 Milk Co (ASX:A2M), the current Cyclically Adjusted PS Ratio is 3.77 as of Jul. 15, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The a2 Milk Co (ASX:A2M) Overvalued in 2026?
Based on GuruFocus' analysis, The a2 Milk Co stock appears to be overvalued.
The current stock price of A$6.93 is trading 3.6% above its estimated GF Value™ of A$6.69.
GuruFocus considers The a2 Milk Co to be Fairly Valued.
Key valuation signals for ASX:A2M:
Cyclically Adjusted PS Ratio: 3.77 (52% below median its 10-year median of 7.91)
GF Value™: A$6.69 vs. price of A$6.93 (3.6% above fair value)
Industry Position: 396.1% above the Consumer Packaged Goods median (#1299 of 1445)
No single metric tells the full story. See the ASX:A2M stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
A2 Milk is a New Zealand licensor and marketer of fresh milk, infant formula, and other dairy products that lack the A1 beta-casein protein. The firm was founded in 2000 by Corran McLachlan, who developed a genetic test to determine which proteins a cow produces in its milk, and business partner Howard Paterson. The company has been through a tumultuous history of receivership, legal battles, and strategic shifts, but emerged in its current structure in 2006 and listed publicly in March 2013.
83GF Score
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