Originally Posted by
BlackPeter
I don't think that a 2 year time window is large enough to assess whether the PE of 30 is a fair deal. As long as they could grow sustainably with more than 20 % for say the next 10 years (that's more than 6-folding their earnings in 10 years), would I happily pay for a PE of 30 ... but not sure about this assumption.
I expect A2's market growth to drop in line with other diary giants turning towards A2. Converting all cows would be something like 10 years (if they start now), but obviously - the competition will move in earlier and hey, they started already.
How long will the sun keep shining for A2 to reap the benefits of their early start? Another 3 to 5 years? Doubt it will be longer ...