A2M 1.27% $7.01 the a2 milk company limited

A2M fair value based on fundamentals

  1. 214 Posts.
    Looking for opinions on what is a fair value, Warren Buffet style, on the value of A2M (per share)

    Here are some basic calculations I did, feel free to tell me I'm way off, using some evidence would be good in this regard

    Half year net profit after tax = 10.1 mill AUD
    Full year estimate = 25 mill (doubled the half year plus some)

    25 mill * price to earning of 15 = 375 mill market cap (MC), 20 = 500 mill MC, 30 = 750 mill MC, 40 = 1000 mill MC

    thus at 660,000 shares oustanding

    Share price PE of
    15 = $0.57,
    20 = $0.76,
    30 = $1.14,
    40 = $1.52

    Based on these calculations with A2m's growth potential $0.60 per share is getting dirt cheap (PE of 15 is the long term average of the stock market apparently, but based on A2M's growth potential I think it is a little low especially as it is in its growth phase), but above $1.00 its starting to look a bit expensive, even with the growth potential

    Are the calculations solid or did I miss something?

    I invested in A2M closer to $2 then sold out (took a punt, based on the hype), now I want to stop being a dxxk and actually understand investing and how to value things.

    If I had done this calculation before I put my money in, then I wouldnt have
 
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Last
$7.01
Change
-0.090(1.27%)
Mkt cap ! $5.089B
Open High Low Value Volume
$7.10 $7.15 $6.97 $2.175M 309.5K

Buyers (Bids)

No. Vol. Price($)
13 10567 $7.00
 

Sellers (Offers)

Price($) Vol. No.
$7.02 11792 14
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Last trade - 11.59am 14/06/2024 (20 minute delay) ?
Last
$7.03
  Change
-0.090 ( 1.51 %)
Open High Low Volume
$7.09 $7.11 $6.97 111251
Last updated 12.19pm 14/06/2024 ?
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