Tue problem with Yarra suggesting the PE is too high is that 2 years ago when the share price was 20% of today's price the PE was twice as high. And if growth is maintained for just 1 more year the PE will be lower than the market PE for FMCG businesses growing at 5% per annum.
A2 is trading on a PEG ratio of 0.7x so growth is outstripping it's PE. The Company has a return on equity that is pretty much irrelevant because the majority of the equity is held in cash or the synlait investment. every day this cash balance grows as cash flow converts $ for $ from after tax earnings due to no capital investment required.
Cheap imho
Q3 Update, page-20
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