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Australian Agricultural Company Ltd (AAC) Fair Value & Analysis

Consumer Defensive · AU · Market cap A$820M (≈ $590M) · ISIN AU000000AAC9

AA Australian Agricultural Company Ltd AAC · AU
PriceA$1.34
Fair ValueA$1.04
Upside-22.2%
Quality45/100
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Strengths

Highly profitable · 25.4% net margin

Risks

!Trades 28% ABOVE our fair value of A$1.04
!Expensive Growth (revenue 5y +9.7 %/yr)
!Low debt · negative free cash flow
!Trails peers (4/12)
Expensive Growth (revenue 5y +9.7 %/yr)
Highly profitable · 25.4% net margin
Low debt · negative free cash flow
Trails peers (4/12)
Narrow moat 36/100
Evidence: Medium Range A$0.7980 – A$1.30 Share as image

Fair value as of: Aug 27, 2026

From 10 valuation models · updated yesterday

Fair value updated Aug 27, 2026, revised from A$2.98 to A$1.04 (−65.0%) since Aug 19, 2026. Share price −0.7% over the past month.

Below-average quality, and trading another 28% above our fair value.

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69 individual criteria per stock, every one traceable See the method →

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What matters now

  • The price sits above even our optimistic bull case (A$1.30). The favourable scenario is already priced in.
  • Solid but not exceptional quality (45/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

A$2.37 A$1.17 Fair Value A$1.04 Jun 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 27, 2026.

How to read this chart

60‑month range A$1.17 – A$2.37 · fair‑value band A$0.7980 – A$1.30 · the A$1.34 price screens above the A$1.04 fair value. Dashed = 300-day average. As of Aug 27, 2026.

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Analysis

Australian Agricultural Company Ltd (AAC) currently trades at A$1.34, while our model-based Fair Value estimate is A$1.04, implying the stock looks roughly 22.2% overvalued today. The Quality Score stands at 45/100 (below-average quality), in the Consumer Defensive sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, Australian Agricultural Company Ltd generated revenue of A$422M at a net margin of 25.4%. Revenue declined 1.7% year over year. It earns a return on equity of 6.5%. Net debt stands at A$508M. Fundamentals as of Aug 27, 2026

Our scenario range runs from A$0.7980 (bear case) to A$1.30 (bull case); at A$1.34, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 14% below its 52-week high and 6% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at -19% fair-value upside, at -22%, AAC screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income A$2.18 A$2.20 A$2.07 76
Growth-Adj P/E A$2.38 A$3.40 A$4.42 68
P/E Multiple A$2.80 A$3.74 A$4.67 63
All 10 models by family
DCF Models
Owner Earnings A$1.04 A$1.91 A$3.09 31
Earnings-Based
Graham-Dodd A$1.21 A$4.07 A$5.45 54
Lynch FV A$0.9300 A$1.32 A$1.72 50
PEG = 1.0 A$0.9300 A$1.32 A$1.72 46
Multiples
P/E Multiple A$2.80 A$3.74 A$4.67 63
P/S Multiple A$0.8400 A$1.12 A$1.40 58
P/B Multiple A$2.27 A$3.03 A$3.78 55
Asset-Based
NCAV (Graham) A$1.47 A$1.97 A$2.95 50
Economic Profit
Residual Income A$2.18 A$2.20 A$2.07 76
Growth Earnings
Growth-Adj P/E A$2.38 A$3.40 A$4.42 68

Widest divergence: Growth Earnings (A$3.40) versus Earnings-Based (A$1.32). Highest evidence: Residual Income (76).

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Key figures & financial health

P/E ratio 7.4
P/S ratio 1.89 P/E × margin
EPS (TTM) A$0.1800 price ÷ EPS = P/E 7.4
Net margin 25.4% FY2026
Return on equity 6.5% TTM
Return on assets (EBIT) -5.8% avg 5y
More key figures
Profitability
Operating margin -65.3% TTM
Growth
Revenue (TTM) A$422M TTM
Revenue growth (YoY) -1.7% 3y avg +10.4%
EPS growth (YoY) +247%
Balance sheet & cash flow
Free cash flow −A$15.2M FY2026
Net debt A$508M FY2026

Figures from reported company fundamentals · as of Aug 27, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 45/100

Of which business quality 42 · Market factors (momentum, volatility) 52

Profitability 34
Margins and returns on capital today
Quality Growth 36
Are margins and returns improving?
Cashflow 6
Earnings quality: real cash, not paper profit
Fin. Strength 46
Balance sheet, leverage, solvency risk
Investment 77
Disciplined investing over empire-building
Low Volatility 91
Calm price path (market factor)
Momentum 40
Price trend over the last 3–12 months (market factor)
52W Momentum 27
Distance to the 52-week high (market factor)
Net Issuance 79
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Australian Agricultural Company Limited produces cattle and beef in Australia. The company is involved in production of beef, including breeding, backgrounding, and feedlotting; sales and marketing beef into global markets; and ownership, operation, and development of pastoral properties.

Full company description

Australian Agricultural Company Limited produces cattle and beef in Australia. The company is involved in production of beef, including breeding, backgrounding, and feedlotting; sales and marketing beef into global markets; and ownership, operation, and development of pastoral properties. It provides its products under the Westholme and the Darling Downs brands. The company also exports its products. Australian Agricultural Company Limited was founded in 1824 and is based in Newstead, Australia.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Australian Agricultural Company Ltd reported revenue of A$422M in FY2026 versus A$276M in FY2022, a compound +11.2%/yr. Reported net income was A$107M in FY2026, compounding −5.9%/yr from FY2022.

Growth Quality 53/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
A$422M
Latest YoY
+8.8%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.4%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+9.7%
Avg. revenue growth/yr (26Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.8%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+18.6% (18.6 + 0.0)
Revenue +11.2%/yr
FY22 A$276M
FY23 A$313M
FY24 A$336M
FY25 A$388M
FY26 A$422M
Net income −5.9%/yr
FY22 A$137M
FY23 A$4.6M
FY24 −A$94.6M
FY25 −A$1.1M
FY26 A$107M

AAC screens 22% overvalued. Compare with Archer-Daniels-Midland Company →

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Cite: Fair Value Calculator (2026). "Australian Agricultural Company Ltd Fair Value". https://www.fairvalue-calculator.com/stock/AAC

Peer Group

Farm Products · 297 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 45 · Below median
Fair Value upside −22% · Below median
Return on equity (TTM) 6% · Above median
Return on assets -6% · Bottom 25%
Net margin (TTM) 25% · Top 25%
Operating margin (TTM) -65% · Bottom 25%
Revenue growth -2% · Below median
Debt / equity 0.27× · Higher than median

Valuation Multiples vs Farm Products median · lower = cheaper

P/E (TTM) 7.4× · Cheaper than 75% of peers
P/B 0.33× · Cheaper than median
P/S (TTM) 1.40× · Pricier than 75% of peers
PEG 3.48× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE4 · sector 28
FUTURE0 · sector 21
PAST26 · sector 19
HEALTH87 · sector 94
DIVIDEND0 · sector 48

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

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10 more Farm Products stocks, each showing price versus our Fair Value estimate (as of Aug 27, 2026).

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Charoen Pokphand Foods Public Company CPF 23.40 THB 43.24 THB +85%
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Frequently asked questions

Is Australian Agricultural Company Ltd (AAC) overvalued or undervalued?
As of Aug 27, 2026, our model estimates a fair value of A$1.04 versus a price of A$1.34, about −22% (overvalued).
What is the fair value of AAC?
Our model-based fair value for Australian Agricultural Company Ltd is A$1.04 (as of Aug 27, 2026), built from audited fundamentals. The current price: A$1.34.
What is the quality score of AAC?
Australian Agricultural Company Ltd has a Quality Score of 45/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Australian Agricultural Company Ltd (AAC)?
Australian Agricultural Company Ltd reported trailing-twelve-month revenue of about A$422M (latest available figure, as of Aug 27, 2026).
What is the net profit margin of AAC?
The net profit margin of Australian Agricultural Company Ltd is about 25.4%, meaning it keeps roughly 25.4% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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