ALL and A2 Milk Company Ltd: 2 ASX shares to dig into

The Aristocrat Leisure Ltd (ASX:ALL) share price is down 5.4% since the start of 2025. It's probably worth asking, 'is the ALL share price cheap?'
The Aristocrat Leisure Ltd (ASX:ALL) share price is down 5.4% since the start of 2025. The A2 Milk Company Ltd (ASX:A2M) share price is tracking 68.7% off its 52-week lows.

ALL share price in focus

Aristocrat Leisure is an Australian gambling machine operator headquartered in Sydney. It was founded by Len Ainsworth in 1953

Today, Aristocrat is the largest gambling machine manufacturer in Australia and one of the largest manufacturers of slot machines in the world. However, the business has diversified over the years and now also makes online mobile games. This segment has grown steadily to now make up nearly half of the company’s revenue.

The gaming machines Aristocrat make can be sold outright to a venue or gaming operator. Alternatively, a machine can be installed with a proportion of the revenue generated being paid on a recurring basis back to Aristocrat.

A2M shares

Founded in New Zealand in 2000, The a2 Milk Company specialises in dairy products that contain the naturally occurring A2 protein type, sold under the a2 brand.

The company does not produce its products directly but partners with over 25 certified dairy farms across Australia, where suppliers handle the production. Additionally, its instant formula products are manufactured by its supply partner, Synlait Milk, in New Zealand.

ALL & A2M share price valuation

As a growth company, one way to put a rough guesstimate on the ALL share price could be to compare its price-to-sales multiple over time. This can tell us how the company has historically been valued relative to its total revenue.

Currently, Aristocrat Leisure Ltd shares have a price-sales ratio of 6.15x, compared to its 5-year average of 5.64x, meaning its shares are trading above their historical average. This could mean that the share price has increased, or that sales have declined, or both. In the case of ALL, revenue has been growing over the last 3 years. Of course, context is important – and this is just one valuation technique. Investment decisions can’t just be based on one metric, but this can be a rough starting point.

The A2M share price currently trades at a price-sales ratio of 4.17x, which compares to its 5-year long-term average of 3.44x. So, its shares are trading above their historical average. Don’t forget, a simple multiple like this should only be the start of your research. The Rask websites offer free online investing courses, created by analysts explaining things like Discounted Cash Flow (DCF) and Dividend Discount Models (DDM). They even include free valuation spreadsheets! It’s a good idea to use multiple valuation methods to value a share like A2 Milk Company Ltd.

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