A2M 1.50% $5.90 the a2 milk company limited

So the company is currently valued at A$4.3b. Let's assume a...

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    So the company is currently valued at A$4.3b.

    Let's assume a normalised EBITDA margin of 20% in future years, which I think is reasonable. So on revenue of NZ$1.25b, that equates to A$168m profit (assuming 30% tax rate) or a PE multiple of ~26. So the company is still priced with a decent amount of growth already factored in. Anyone claiming the company is "cheap" or a "takeover target" is wrong, imo. That multiple isn't "cheap" and no one is going to make a takeover bid for A2M that values it on a PE multiple well north of 30. The fundamentals simply don't support it.
 
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