Fair value of $7.97

Assumption:
18 Sales grow by 100% (Revenue 2015-2017 historic avg growth rate) = 1046.2m
18 NP grow by 298% (2015-2017 avg) =256m (imply EPS= 35.32cps)
18 EPS grow by 248% (A2M 2015-2017 historic avg) = 28.97cps
PE ratio of 22 will give A2M fair value of 7.97, a Market cap of 5,796m.

Is it Possible? Will you pay PE x22 for A2M?
If you do, do you think it is justified by A2M's:
1. Pricing power?
2. Management ability to increase operating margin?
3. A massive increase in Sales? (From 523.1m to 1046.2m)
4. New Product? Yoghurt? Cheese? Acquisition?

I have to point out that management has done well to transfer that 55% revenue growth from 16-17 into NP of 298% growth (86.3mil in fy17/29mil in fy16) is quite an incredible achievement.


If HC members can provide guestimate on the Sales in store from FY16 , FY17 and keep an eye on the shelves now, we may be able to come up with a closer value.

For the time being, I think we are about 30+years away from $100.