Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
The a2 Milk CoASX:A2M +0.43%83 5-Year Yield-on-Cost % is 2.39 as of Jul. 16, 2026, which is 214% above its 10-year median of 0.76. GuruFocus rates ASX:A2M with a GF Score™ of 83/100 and a GF Value™ of A$6.71 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,169 Consumer Packaged Goods companies, The a2 Milk Co ranks worse than 63.05% on this metric.
The a2 Milk Co's yield on cost for the quarter that ended in Dec. 2025 was 2.39.
The historical rank and industry rank for The a2 Milk Co's 5-Year Yield-on-Cost % or its related term are showing as below:
ASX:A2M'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.67 Med: 0.76 Max: 2.43
Current: 2.39
During the past 13 years, The a2 Milk Co's highest Yield on Cost was 2.43. The lowest was 0.67. And the median was 0.76.
ASX:A2M's 5-Year Yield-on-Cost % is ranked worse than 63.05% of 1169
companies
in the Consumer Packaged Goods industry
Industry Median: 3.41
vs ASX:A2M: 2.39
The a2 Milk Co (ASX:A2M) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
The a2 Milk Co 5-Year Yield-on-Cost % Related Terms
ASX:A2M vs KHC, GIS: 5-Year Yield-on-Cost % Comparison
For the Packaged Foods subindustry, The a2 Milk Co's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The a2 Milk Co's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where The a2 Milk Co's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of The a2 Milk Co is calculated as
The a2 Milk Co (ASX:A2M) has a 5-Year Yield-on-Cost % of 2.39 as of Jul. 16, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on The a2 Milk Co and its competitors. This is 214% above median its historical median of 0.76. Over the past decade, The a2 Milk Co's 5-Year Yield-on-Cost % has ranged from 0.67 to 2.43. According to the industry distribution chart, The a2 Milk Co ranks #737 out of 1169 companies in the Consumer Packaged Goods industry, placing it in the top 63%.
Is The a2 Milk Co's 5-Year Yield-on-Cost % too high?
The a2 Milk Co's current 5-Year Yield-on-Cost % of 2.39 is 214% above median its 10-year median of 0.76. Over the past 10 years, this metric has ranged from a low of 0.67 to a high of 2.43. The Consumer Packaged Goods industry median 5-Year Yield-on-Cost % is 3.41. The a2 Milk Co's value of 2.39 is 29.9% below this industry median. Based on the distribution chart, The a2 Milk Co ranks #737 out of 1169 companies in the Consumer Packaged Goods industry, which is below the industry midpoint. 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 5-Year Yield-on-Cost % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, The a2 Milk Co ranks #737 out of 1169 companies for 5-Year Yield-on-Cost %. This places The a2 Milk Co in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 3.41. The a2 Milk Co's value of 2.39 is 29.9% below this benchmark. Historically, The a2 Milk Co's own 5-Year Yield-on-Cost % has ranged from 0.67 to 2.43 over the past decade. While the company's 10-year median is 0.76 vs. the industry median of 3.41, The a2 Milk Co has consistently been below 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 5-Year Yield-on-Cost % for a Consumer Packaged Goods company?
The median 5-Year Yield-on-Cost % among Consumer Packaged Goods companies is 3.41, based on 1,169 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The a2 Milk Co's current 5-Year Yield-on-Cost % of 2.39 is 29.9% below 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on The a2 Milk Co and its competitors. For the Consumer Packaged Goods industry, the median 5-Year Yield-on-Cost % is 3.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The a2 Milk Co's current 5-Year Yield-on-Cost % is 2.39, which is 214% above median its own 10-year median of 0.76. 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$6.71, compared to a current price of A$6.96 — trading 3.7% above its estimated fair value. The current 5-Year Yield-on-Cost % is 2.39, which is 214% above median its 10-year median of 0.76 and 29.9% below the Consumer Packaged Goods industry median of 3.41. 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 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For The a2 Milk Co (ASX:A2M), the current 5-Year Yield-on-Cost % is 2.39 as of Jul. 16, 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$6.96 is trading 3.7% above its estimated GF Value™ of A$6.71.
GuruFocus considers The a2 Milk Co to be Fairly Valued.
Key valuation signals for ASX:A2M:
5-Year Yield-on-Cost %: 2.39 (214% above median its 10-year median of 0.76)
GF Value™: A$6.71 vs. price of A$6.96 (3.7% above fair value)
Industry Position: 29.9% below the Consumer Packaged Goods median (#737 of 1169)
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
Get the complete analysis for ASX:A2M
5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ASX:A2M has been successfully added to your 
