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STOCK COMPARISON

a2 Milk Company vs Nestle S.A.: Fair Value & Quality

Both stocks run through our valuation models. Here is how a2 Milk Company (A2M) and Nestle S.A. (NESN) compare, as of Sep 30, 2026.

As of Sep 30, 2026, Fair Value Calculator sees Nestle S.A. as the less overvalued of the two: a2 Milk Company trades at A$6.66 versus a fair value of A$5.04 (−24.3%), while Nestle S.A. trades at CHF 76.26 versus CHF 59.51 (−22.0%).
a2 Milk Company
A2M.AU · AUD · Consumer Staples
−24.3%
upside to fair value
overvalued
PriceA$6.66
Fair ValueA$5.04
Quality67/100
Nestle S.A.
NESN.SW · CHF · Consumer Staples
−22.0%
upside to fair value
overvalued
PriceCHF 76.26
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

a2 Milk CompanyNestle S.A.
Valuation
29.0×P/E (TTM)26.1×
21.7×Forward P/E15.9×
n/aMedian P/E at FY-end (10 FY, reported earnings)24.0×
1.72×P/S (TTM)2.21×
3.17×P/B5.98× · book value is mostly goodwill
9.1×EV/EBITDA14.3×
1.75×PEG1.88×
−24.3%Fair value upside−22.0%
3.2%Dividend yield4.1%
A$0.21Dividend per shareCHF 3.10
Profitability
14.8%Operating margin16.1%
1.38×EBIT margin trend (5Y)0.91×
16.6%Return on equity26.2%
9.3%Return on assets6.7%
Growth
6.5%Revenue growth (YoY)-2.5%
7.4%Avg. growth/yr (3Y)-1.9%
10.3%Avg. growth/yr (5Y)1.1%
+15.6%Value creation/yr+0.1%
Balance & size
287.0×Interest coverage (EBIT/interest)8.5×
0.04×Debt / equity1.34×
$3BMarket cap$235B
expensiveGrowth qualityweak
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.

a2 Milk Company leads: 11 to 4 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.

a2 Milk Companyof which business quality 66 · market factors 36 Nestle S.A.of which business quality 63 · market factors 58
ProfitabilityMargins and returns on capital today
71
60
Quality GrowthAre margins and returns improving?
50
43
CashflowEarnings quality: real cash, not paper profit
21
67
Fin. StrengthBalance sheet, leverage, solvency risk
96
41
InvestmentDisciplined investing over empire-building
86
94
Low VolatilityCalm price path (market factor)
73
91
MomentumPrice trend over the last 3–12 months (market factor)
18
43
52W MomentumDistance to the 52-week high (market factor)
24
45
Net IssuanceShare count: buybacks or dilution?
80
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 familya2 Milk CompanyPrice A$6.66Nestle S.A.Price CHF 76.26
DCF Models−5.5%close to the priceA$6.30−30.4%below the priceCHF 53.09
Earnings-Based+26.3%above the priceA$8.41−56.0%below the priceCHF 33.53
Dividend Discount−54.7%below the priceA$3.02−54.3%below the priceCHF 34.87
Multiples−31.5%below the priceA$4.56−12.5%close to the priceCHF 66.73
Asset-Based−88.0%below the priceA$0.80−88.8%below the priceCHF 8.55
Growth DCF−40.4%below the priceA$3.97−33.5%below the priceCHF 50.71
Economic Profit−53.8%below the priceA$3.08−58.5%below the priceCHF 31.68
Growth Earnings+65.2%above the priceA$11.00−26.8%below the priceCHF 55.79
Minimum−88.0%below the priceA$0.80−88.8%below the priceCHF 8.55
Maximum+65.2%above the priceA$11.00−12.5%close to the priceCHF 66.73
Median−36.0%below the priceA$4.27−43.9%below the priceCHF 42.79
Geometric mean−38.6%below the priceA$4.09−52.1%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%.

a2 Milk Company: 20 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.

a2 Milk Company
Price A$6.66
Fair Value A$5.04
Bear A$2.93Bull A$6.20
Nestle S.A.
Price CHF 76.26
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.

a2 Milk Company · Consumer Staples

Quality score67 · Top 25%
Fair value upside−24.3% · below median

Nestle S.A. · Consumer Staples

Quality score68 · Top 25%
Fair value upside−22.0% · below median

Bottom line

As of Sep 30, 2026, Fair Value Calculator sees Nestle S.A. as the less overvalued of the two: a2 Milk Company trades at A$6.66 versus a fair value of A$5.04 (−24.3%), while Nestle S.A. trades at CHF 76.26 versus CHF 59.51 (−22.0%).

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

Open Nestle S.A. live analysis →

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