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STOCK COMPARISON

China Mengniu Dairy vs Nestle S.A.: Fair Value & Quality

Both stocks run through our valuation models. Here is how China Mengniu Dairy (2319) and Nestle S.A. (NESN) compare, as of Oct 1, 2026.

As of Oct 1, 2026, Fair Value Calculator sees Nestle S.A. as the less overvalued of the two: China Mengniu Dairy trades at HK$17.84 versus a fair value of HK$9.81 (−45.0%), while Nestle S.A. trades at CHF 76.02 versus CHF 59.51 (−21.7%).
China Mengniu Dairy
2319.HK · HKD · Consumer Staples
−45.0%
upside to fair value
overvalued
PriceHK$17.84
Fair ValueHK$9.81
Quality62/100
Nestle S.A.
NESN.SW · CHF · Consumer Staples
−21.7%
upside to fair value
overvalued
PriceCHF 76.02
Fair ValueCHF 59.51
Quality68/100
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Head-to-head numbers

Green is the better side of a row, red the weaker one (for valuation multiples: lower = cheaper). Grey rows are for reference only and are not scored.

betterweakerfor reference, not scored

China Mengniu DairyNestle S.A.
Valuation
30.8×P/E (TTM)26.0×
15.1×P/E ex one-offs (FY2025)n/a
10.6×Forward P/E (FY2027)15.8×
n/aMedian P/E at FY-end (10 FY, reported earnings)24.0×
0.69×P/S (TTM)2.20×
1.46×P/B5.96× · book value is mostly goodwill
7.3×EV/EBITDA14.3×
0.26×PEG1.88×
−45.0%Fair value upside−21.7%
3.3%Dividend yield4.1%
HK$0.60Dividend per shareCHF 3.10
Profitability
7.6%Operating margin16.1%
1.42×EBIT margin trend (5Y)0.91×
4.1%Return on equity26.2%
3.1%Return on assets6.7%
Growth
7.8%Revenue growth (YoY)-2.5%
n/aAvg. growth/yr (3Y)-1.9%
n/aAvg. growth/yr (5Y)1.1%
+11.9%Value creation/yr+0.1%
Balance & size
5.4×Interest coverage (EBIT/interest)8.5×
0.28×Debt / equity1.34×
$9BMarket cap$234B
mixedGrowth qualityweak
The P/E excluding one-off items is only shown where the special items are documented in the accounts (our own raw data or SEC filings). If one side lacks it, the reported P/E stays scored.
Nestle S.A., median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings: 24.
Forward P/E: price divided by the analyst consensus for the first fiscal year that has not started yet. The current year carries special items from quarters already reported.

China Mengniu Dairy leads: 7 to 6 metric wins.

n/a = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

China Mengniu Dairyof which business quality 61 · market factors 66 Nestle S.A.of which business quality 63 · market factors 57
ProfitabilityMargins and returns on capital today
39
60
Quality GrowthAre margins and returns improving?
49
43
CashflowEarnings quality: real cash, not paper profit
62
67
Fin. StrengthBalance sheet, leverage, solvency risk
52
41
InvestmentDisciplined investing over empire-building
98
94
Low VolatilityCalm price path (market factor)
86
91
MomentumPrice trend over the last 3–12 months (market factor)
54
42
52W MomentumDistance to the 52-week high (market factor)
65
43
Net IssuanceShare count: buybacks or dilution?
89
87

What the models say

How far the median fair value (base case) per model family sits from the current price, in percent. The amount in the currency of the trading venue is shown underneath.

above the price, more than 15% above close to the price, 85% to 115% of the price below the price, more than 15% below

Model familyChina Mengniu DairyPrice HK$17.84Nestle S.A.Price CHF 76.02
DCF Models+59.0%above the priceHK$28.36−30.2%below the priceCHF 53.09
Earnings-Based−57.0%below the priceHK$7.67−55.9%below the priceCHF 33.53
Dividend Discount−44.9%below the priceHK$9.83−54.1%below the priceCHF 34.87
Multiples−12.8%close to the priceHK$15.55−12.2%close to the priceCHF 66.73
Asset-Based−54.0%below the priceHK$8.21−88.8%below the priceCHF 8.55
Growth DCF+85.5%above the priceHK$33.09−33.3%below the priceCHF 50.71
Economic Profit−35.4%below the priceHK$11.52−58.3%below the priceCHF 31.68
Growth Earnings−58.7%below the priceHK$7.37−26.6%below the priceCHF 55.79
Minimum−58.7%below the priceHK$7.37−88.8%below the priceCHF 8.55
Maximum+85.5%above the priceHK$33.09−12.2%close to the priceCHF 66.73
Median−40.2%below the priceHK$10.67−43.7%below the priceCHF 42.79
Geometric mean−27.7%below the priceHK$12.90−51.9%below the priceCHF 36.53

Minimum, maximum, median and geometric mean refer to the family values in this table. Geometric because deviations are ratios: half the price and twice the price average to 100%, not 125%.

China Mengniu Dairy: 14 of 26 models see the stock below the current price.

Nestle S.A.: 23 of 24 models see the stock below the current price.

Scenario ranges

From our cautious bear scenario to the optimistic bull scenario. The white tick is the current price (value above it), the green tick the fair value (value below it): if the price sits left of the fair value, there is room to rise.

China Mengniu Dairy
Price HK$17.84
Fair Value HK$9.81
Bear HK$9.18Bull HK$12.26
Nestle S.A.
Price CHF 76.02
Fair Value CHF 59.51
Bear CHF 36.96Bull CHF 88.54

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

China Mengniu Dairy · Consumer Staples

Quality score62 · above median
Fair value upside−45.0% · bottom 25%

Nestle S.A. · Consumer Staples

Quality score68 · Top 25%
Fair value upside−21.7% · below median

Bottom line

As of Oct 1, 2026, Fair Value Calculator sees Nestle S.A. as the less overvalued of the two: China Mengniu Dairy trades at HK$17.84 versus a fair value of HK$9.81 (−45.0%), while Nestle S.A. trades at CHF 76.02 versus CHF 59.51 (−21.7%).

Nestle S.A. has the higher quality score (68/100).

Open Nestle S.A. live analysis →

More comparisons

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A model-based valuation snapshot from 26 models. Values change with price and fundamentals; the date shown above applies.