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Fonterra Co-operative GroupNZSE:FCG 65 Graham Number is NZ$5.53 as of Jan. 2026, which is 100% below its 10-year median of 0.70. GuruFocus rates NZSE:FCG with a GF Score™ of 65/100 and a GF Value™ of NZ$2.99 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,388 Consumer Packaged Goods companies, Fonterra Co-operative Group ranks better than 69.67% on this metric.
Graham Number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share and book value per share. The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below the Graham number is considered undervalued, and thus worth investing in.
The historical rank and industry rank for Fonterra Co-operative Group's Graham Number or its related term are showing as below:
NZSE:FCG'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.28 Med: 0.7 Max: 1.95
Current: 0.78
During the past 13 years, the highest Price to Graham Number ratio of Fonterra Co-operative Group was 1.95. The lowest was 0.28. And the median was 0.70.
NZSE:FCG's Price-to-Graham-Number is ranked better than 69.67% of 1388
companies
in the Consumer Packaged Goods industry
Industry Median: 1.12
vs NZSE:FCG: 0.78
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Fonterra Co-operative Group (NZSE:FCG) Graham Number Explanation
Ben Graham actually did not publish a formula like this. But he wrote in The Intelligent Investor (1948 version) regarding to the criteria for purchases:
Current price should not be more than 15 times average earnings of the past three years.
Current price should not be more than 1.5 times the book value last reported. However, a multiplier of earnings below 15 could justify a correspondingly higher multiplier of assets. As a rule of thumb we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5. (This figure corresponds to 15 times earnings and 1.5 times book value. It would admit an issue selling at only 9 times earnings and 2.5 times asset value, etc.)
Unlike valuation methods such as DCF or Discounted Earnings, the Graham number does not take growth into the valuation. Unlike the valuation methods based on book value alone, it takes into account the earnings power. Therefore, the Graham Number is a combination of asset valuation and earnings power valuation.
In general, the Graham number is a very conservative way of valuing a stock. It cannot be applied to companies with negative book values.
Fonterra Co-operative Group's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Jan. 2026 )
=
4.32
/
5.53
=
0.78
* 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.
Be Aware
Please keep these in mind:
1. Graham Number does not take growth into account. Therefore it underestimates the values of the companies that have good earnings growth. We feel that if the earnings per share grows more than 10% a year, Graham Number underestimates the value.
2. Graham Number punishes the companies that have temporarily low earnings. Therefore, an average of earnings makes more sense in the calculation of Graham Number.
3. Graham Numbers underestimates companies that are light with book.
Fonterra Co-operative Group Graham Number Related Terms
Fonterra Co-operative Group Graham Number Historical Data
* 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.
NZSE:FCG vs KHC, GIS, HRL: Graham Number Comparison
For the Packaged Foods subindustry, Fonterra Co-operative Group's Price-to-Graham-Number, along with its competitors' market caps and Price-to-Graham-Number 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.
Fonterra Co-operative Group Price-to-Graham-Number vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Fonterra Co-operative Group's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Fonterra Co-operative Group's Price-to-Graham-Number falls into.
* 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.
Fonterra Co-operative Group (NZSE:FCG) has a Graham Number of NZ$5.53 as of Jan. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Fonterra Co-operative Group and its competitors. This is 690% above median its historical median of 0.70. Over the past decade, Fonterra Co-operative Group's Graham Number has ranged from 0.28 to 1.95. According to the industry distribution chart, Fonterra Co-operative Group ranks #421 out of 1388 companies in the Consumer Packaged Goods industry, placing it in the top 30.3%.
Is Fonterra Co-operative Group's Graham Number too high?
Fonterra Co-operative Group's current Graham Number of NZ$5.53 is 690% above median its 10-year median of 0.70. Over the past 10 years, this metric has ranged from a low of 0.28 to a high of 1.95. Based on the distribution chart, Fonterra Co-operative Group ranks #421 out of 1388 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, Fonterra Co-operative Group has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Fonterra Co-operative Group's Graham Number compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Fonterra Co-operative Group ranks #421 out of 1388 companies for Graham Number. This puts Fonterra Co-operative Group in the upper half of its industry. The industry median Graham Number is 1.12. Historically, Fonterra Co-operative Group's own Graham Number has ranged from 0.28 to 1.95 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Graham Number for a Consumer Packaged Goods company?
The median Graham Number among Consumer Packaged Goods companies is 1.12, based on 1,388 companies in the industry. Companies in the top quartile (top 25%) have a Graham Number significantly above this median, while those in the bottom quartile fall well below. However, Graham Number should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Graham Number mean?
A high Graham Number can signal that a stock is expensive relative to its fundamentals. The Graham Number values a company based on its per-share earnings and book value. View historical data on Fonterra Co-operative Group and its competitors. For the Consumer Packaged Goods industry, the median Graham Number is 1.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fonterra Co-operative Group's current Graham Number is NZ$5.53, which is 690% above median its own 10-year median of 0.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fonterra Co-operative Group stock overvalued right now?
Based on GuruFocus' analysis, Fonterra Co-operative Group (NZSE:FCG) is currently considered Significantly Overvalued. The stock's GF Value™ is NZ$2.99, compared to a current price of NZ$4.32 — trading 44.5% above its estimated fair value. The current Graham Number is NZ$5.53, which is 690% above median its 10-year median of 0.70. Fonterra Co-operative Group's overall GF Score™ is 65/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Graham Number calculated?
Graham Number is calculated from a company's financial statements. For Fonterra Co-operative Group (NZSE:FCG), the current Graham Number is NZ$5.53 as of Jan. 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 Fonterra Co-operative Group (NZSE:FCG) Overvalued in 2026?
Based on GuruFocus' analysis, Fonterra Co-operative Group stock appears to be overvalued.
The current stock price of NZ$4.32 is trading 44.5% above its estimated GF Value™ of NZ$2.99.
GuruFocus considers Fonterra Co-operative Group to be Significantly Overvalued.
Key valuation signals for NZSE:FCG:
Graham Number: NZ$5.53 (690% above median its 10-year median of 0.70)
GF Value™: NZ$2.99 vs. price of NZ$4.32 (44.5% above fair value)
No single metric tells the full story. See the NZSE:FCG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fonterra Co-operative Group Ltd operates predominantly in the international dairy industry. The company is involved in the collection, manufacture, and sale of milk and milk-derived products through its ingredients, Consumer and Foodservice channels. The company's reportable segments are Global Markets, Greater China, and Core Operations and the majority of the revenue is generated from its core operations segment. Its primary geographic markets is Asia, China, Australia, New Zealand, the United States, and the Rest of the world.
65GF Score
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