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The a2 Milk CoFRA:14L +0.49%82 PEG Ratio is 1.65 as of Aug. 22, 2026, which is 323% above its 10-year median of 0.39. GuruFocus rates FRA:14L with a GF Score™ of 82/100 and a GF Value™ of €4.08 (Fairly Valued). The stock has 2 warning signs investors should review. Among 792 Consumer Packaged Goods companies, The a2 Milk Co ranks worse than 55.56% on this metric.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for The a2 Milk Co's PEG Ratio or its related term are showing as below:
FRA:14L'
s PEG Ratio Range Over the Past 10 Years
Min: 0.08 Med: 0.39 Max: 2.68
Current: 1.61
During the past 13 years, The a2 Milk Co's highest PEG Ratio was 2.68. The lowest was 0.08. And the median was 0.39.
FRA:14L's PEG Ratio is ranked worse than 55.56% of 792
companies
in the Consumer Packaged Goods industry
Industry Median: 1.33
vs FRA:14L: 1.61
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
The a2 Milk Co PEG Ratio Related Terms
The a2 Milk Co PEG Ratio Historical Data
* Premium members only.
The historical data trend for The a2 Milk Co's PEG 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.
For the Packaged Foods subindustry, The a2 Milk Co's PEG Ratio, along with its competitors' market caps and PEG 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 PEG Ratio vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The a2 Milk Co's PEG Ratio distribution charts can be found below:
* The bar in red indicates where The a2 Milk Co's PEG Ratio 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The a2 Milk Co (FRA:14L) has a PEG Ratio of 1.65 as of Aug. 22, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on The a2 Milk Co and its competitors. This is 323% above median its historical median of 0.39. Over the past decade, The a2 Milk Co's PEG Ratio has ranged from 0.08 to 2.68. According to the industry distribution chart, The a2 Milk Co ranks #440 out of 792 companies in the Consumer Packaged Goods industry, placing it in the top 55.6%.
Is The a2 Milk Co's PEG Ratio too high?
The a2 Milk Co's current PEG Ratio of 1.65 is 323% above median its 10-year median of 0.39. Over the past 10 years, this metric has ranged from a low of 0.08 to a high of 2.68. The Consumer Packaged Goods industry median PEG Ratio is 1.33. The a2 Milk Co's value of 1.65 is 24.1% above this industry median. Based on the distribution chart, The a2 Milk Co ranks #440 out of 792 companies in the Consumer Packaged Goods industry, which is below the industry midpoint. Overall, The a2 Milk Co has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does The a2 Milk Co's PEG Ratio compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, The a2 Milk Co ranks #440 out of 792 companies for PEG Ratio. This places The a2 Milk Co in the lower half of its industry. The industry median PEG Ratio is 1.33. The a2 Milk Co's value of 1.65 is 24.1% above this benchmark. Historically, The a2 Milk Co's own PEG Ratio has ranged from 0.08 to 2.68 over the past decade. While the company's 10-year median is 0.39 vs. the industry median of 1.33, 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 PEG Ratio for a Consumer Packaged Goods company?
The median PEG Ratio among Consumer Packaged Goods companies is 1.33, based on 792 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The a2 Milk Co's current PEG Ratio of 1.65 is 24.1% 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 PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on The a2 Milk Co and its competitors. For the Consumer Packaged Goods industry, the median PEG Ratio is 1.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The a2 Milk Co's current PEG Ratio is 1.65, which is 323% above median its own 10-year median of 0.39. 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 (FRA:14L) is currently considered Fairly Valued. The stock's GF Value™ is €4.08, compared to a current price of €4.10 — trading 0.5% above its estimated fair value. The current PEG Ratio is 1.65, which is 323% above median its 10-year median of 0.39 and 24.1% above the Consumer Packaged Goods industry median of 1.33. The a2 Milk Co's overall GF Score™ is 82/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For The a2 Milk Co (FRA:14L), the current PEG Ratio is 1.65 as of Aug. 22, 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 (FRA:14L) Overvalued in 2026?
Based on GuruFocus' analysis, The a2 Milk Co stock appears to be overvalued.
The current stock price of €4.10 is trading 0.5% above its estimated GF Value™ of €4.08.
GuruFocus considers The a2 Milk Co to be Fairly Valued.
Key valuation signals for FRA:14L:
PEG Ratio: 1.65 (323% above median its 10-year median of 0.39)
GF Value™: €4.08 vs. price of €4.10 (0.5% above fair value)
Industry Position: 24.1% above the Consumer Packaged Goods median (#440 of 792)
No single metric tells the full story. See the FRA:14L 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.
82GF Score
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