The a2 Milk CoASX:A2M +2.42%82 PE Ratio (TTM) is 49.48 as of Jul. 04, 2026, which is 26% above its 10-year median of 39.22. GuruFocus rates ASX:A2M with a GF Score™ of 82/100 and a GF Value™ of A$6.63 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 1,424 Consumer Packaged Goods companies, The a2 Milk Co ranks worse than 87.36% on this metric.
The PE Ratio (TTM), or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2026-07-04), The a2 Milk Co's share price is
A$7.62.
The a2 Milk Co's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2025 was A$0.15. Therefore, The a2 Milk Co's PE Ratio (TTM) for today is 49.48.
The historical rank and industry rank for The a2 Milk Co's PE Ratio (TTM) or its related term are showing as below:
ASX:A2M'
s PE Ratio (TTM) Range Over the Past 10 Years
Min: 11.36 Med: 39.22 Max: 108.89
Current: 49.48
During the past 13 years, the highest PE Ratio (TTM) of The a2 Milk Co was 108.89. The lowest was 11.36. And the median was 39.22.
ASX:A2M's PE Ratio (TTM) is ranked worse than 87.36% of 1424
companies
in the Consumer Packaged Goods industry
Industry Median: 15.91
vs ASX:A2M: 49.48
During the past 12 months, The a2 Milk Co's average EPS without NRIGrowth Rate was 26.60% per year.
During the past 3 years, the average EPS without NRIGrowth Rate was 20.10% per year.
During the past 5 years, the average EPS without NRIGrowth Rate was -2.00% per year.
During the past 13 years, The a2 Milk Co's highest 3-Year average EPS without NRI Growth Rate was 108.20% per year. The lowest was -30.30% per year. And the median was 24.15% per year.
The a2 Milk Co's EPS (Basic) for the
six
months ended in Dec. 2025 was A$0.01.
Its EPS (Basic) for the trailing twelve months (TTM) ended in Dec. 2025 was A$0.16.
The a2 Milk Co (ASX:A2M) PE Ratio (TTM) Explanation
The PE Ratio (TTM) can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio (TTM) is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.
In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio (TTM) is positive. Also for stocks with the same PE Ratio (TTM), the one with faster growth business is more attractive.
If a company loses money, the PE Ratio (TTM) becomes meaningless.
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio (TTM) divided by the growth ratio. He thinks a company with a PE Ratio (TTM) equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio (TTM) of 20, instead of a company growing 10% a year with a PE Ratio (TTM) of 10.
Because the PE Ratio (TTM) measures how long it takes to earn back the price you pay, the PE Ratio (TTM) can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.
Investors need to be aware that the PE Ratio (TTM) can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratio (TTM)s are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio (TTM) is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .
PE Ratio (TTM) can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio (TTM).
The a2 Milk Co PE Ratio (TTM) Related Terms
The a2 Milk Co PE Ratio (TTM) Historical Data
* Premium members only.
The historical data trend for The a2 Milk Co's PE Ratio (TTM) 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 PE Ratio (TTM), along with its competitors' market caps and PE Ratio (TTM) 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 PE Ratio (TTM) vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The a2 Milk Co's PE Ratio (TTM) distribution charts can be found below:
* The bar in red indicates where The a2 Milk Co's PE Ratio (TTM) falls into.
The PE Ratio (TTM), or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.
The a2 Milk Co's PE Ratio (TTM) for today is calculated as
The a2 Milk Co's Share Price of today is A$7.62.
For company reported semi-annually, The a2 Milk Co's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was A$0.15.
* 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.
It can also be calculated from the numbers for the whole company:
There are at least three kinds of PE Ratio (TTM)s used by different investors. They are Trailing Twelve Month PE Ratio (TTM) or PE Ratio (TTM) (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio (TTM) based on inflation-adjusted normalized PE Ratio (TTM) is called Shiller PE Ratio, after Yale professor Robert Shiller.
In the calculation of PE Ratio (TTM), the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.
For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.
The a2 Milk Co (ASX:A2M) has a PE Ratio (TTM) of 49.48 as of Jul. 04, 2026. Trailing 12-month P/E ratio is the ratio of share price to a company's trailing 12-month earnings per share. View historical data on The a2 Milk Co and its competitors. This is 26% above median its historical median of 39.22. Over the past decade, The a2 Milk Co's PE Ratio (TTM) has ranged from 11.36 to 108.89. According to the industry distribution chart, The a2 Milk Co ranks #1244 out of 1424 companies in the Consumer Packaged Goods industry, placing it in the top 87.4%.
Is The a2 Milk Co's PE Ratio (TTM) too high?
The a2 Milk Co's current PE Ratio (TTM) of 49.48 is 26% above median its 10-year median of 39.22. Over the past 10 years, this metric has ranged from a low of 11.36 to a high of 108.89. The Consumer Packaged Goods industry median PE Ratio (TTM) is 15.91. The a2 Milk Co's value of 49.48 is 211% above this industry median. Based on the distribution chart, The a2 Milk Co ranks #1244 out of 1424 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 82/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does The a2 Milk Co's PE Ratio (TTM) compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, The a2 Milk Co ranks #1244 out of 1424 companies for PE Ratio (TTM). This places The a2 Milk Co in the lower half of its industry. The industry median PE Ratio (TTM) is 15.91. The a2 Milk Co's value of 49.48 is 211% above this benchmark. Historically, The a2 Milk Co's own PE Ratio (TTM) has ranged from 11.36 to 108.89 over the past decade. While the company's 10-year median is 39.22 vs. the industry median of 15.91, 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 PE Ratio (TTM) for a Consumer Packaged Goods company?
The median PE Ratio (TTM) among Consumer Packaged Goods companies is 15.91, based on 1,424 companies in the industry. Companies in the top quartile (top 25%) have a PE Ratio (TTM) significantly above this median, while those in the bottom quartile fall well below. However, PE Ratio (TTM) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The a2 Milk Co's current PE Ratio (TTM) of 49.48 is 211% 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 PE Ratio (TTM) mean?
A high PE Ratio (TTM) can signal that a stock is expensive relative to its fundamentals. Trailing 12-month P/E ratio is the ratio of share price to a company's trailing 12-month earnings per share. View historical data on The a2 Milk Co and its competitors. For the Consumer Packaged Goods industry, the median PE Ratio (TTM) is 15.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The a2 Milk Co's current PE Ratio (TTM) is 49.48, which is 26% above median its own 10-year median of 39.22. 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 Modestly Overvalued. The stock's GF Value™ is A$6.63, compared to a current price of A$7.62 — trading 14.9% above its estimated fair value. The current PE Ratio (TTM) is 49.48, which is 26% above median its 10-year median of 39.22 and 211% above the Consumer Packaged Goods industry median of 15.91. The a2 Milk Co's overall GF Score™ is 82/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PE Ratio (TTM) calculated?
PE Ratio (TTM) is calculated from a company's financial statements. For The a2 Milk Co (ASX:A2M), the current PE Ratio (TTM) is 49.48 as of Jul. 04, 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$7.62 is trading 14.9% above its estimated GF Value™ of A$6.63.
GuruFocus considers The a2 Milk Co to be Modestly Overvalued.
Key valuation signals for ASX:A2M:
PE Ratio (TTM): 49.48 (26% above median its 10-year median of 39.22)
GF Value™: A$6.63 vs. price of A$7.62 (14.9% above fair value)
Industry Position: 211% above the Consumer Packaged Goods median (#1244 of 1424)
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.
82GF Score
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