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1.20%

$7.02 the a2 milk company limited

0.76 sounds reasonable to me

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ash68

61 Posts.

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07/06/16

20:26

Post #: 17976997
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Originally posted by newfish ↑

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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0.76 sounds reasonable to me

A2M Price at posting: $1.31 Sentiment: Hold Disclosure: Not Held
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0 Great analysis

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(20min delay)
Last $7.02		Change -0.085(1.20%)		Mkt cap ! $5.089B

Open	High	Low	Value	Volume
$7.10	$7.15	$6.97	$2.170M	308.7K

Buyers (Bids)

No.	Vol.	Price($)
3	1347	$7.01

Sellers (Offers)

Price($)	Vol.	No.
$7.02	5399	11

View Market Depth

No.	Vol.	Price($)
8	2178	7.010
16	12243	7.000
15	24802	6.990
11	25966	6.980
13	11441	6.970

Price($)	Vol.	No.
7.020	4762	10
7.030	17593	17
7.040	12989	14
7.050	76279	10
7.060	7766	8

Last trade - 11.57am 14/06/2024 (20 minute delay)


Last $7.02			Change -0.085 ( 1.65 %)
Open	High		Low	Volume
$7.09	$7.11		$6.97	110575
Last updated 12.15pm 14/06/2024 ?

A2M (ASX) Chart