ADM Valuation

Archer-Daniels-Midland Co

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59.670

-0.08(-0.134%)1D

Overview
Forecast
Valuation
Earnings

ADM Relative Valuation

ADM's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, ADM is overvalued; if below, it's undervalued.

Historical Valuation

Archer-Daniels-Midland Co (ADM) is now in the Fair zone, suggesting that its current forward PE ratio of 12.93 is considered Fairly compared with the five-year average of 12.28. The fair price of Archer-Daniels-Midland Co (ADM) is between 50.80 to 61.67 according to relative valuation methord.

Relative Value

Fair Zone

50.80-61.67

Current Price：59.67

Fair

12.93

Trailing

Forward

8.56

EV/EBITDA

Archer-Daniels-Midland Co. (ADM) has a current EV/EBITDA of 8.56. The 5-year average EV/EBITDA is 9.19. The thresholds are as follows: Strongly Undervalued below 7.07, Undervalued between 7.07 and 8.13, Fairly Valued between 10.24 and 8.13, Overvalued between 10.24 and 11.30, and Strongly Overvalued above 11.30. The current Forward EV/EBITDA of 8.56 falls within the Historic Trend Line -Fairly Valued range.

18.84

EV/EBIT

Archer-Daniels-Midland Co. (ADM) has a current EV/EBIT of 18.84. The 5-year average EV/EBIT is 15.26. The thresholds are as follows: Strongly Undervalued below 11.22, Undervalued between 11.22 and 13.24, Fairly Valued between 17.28 and 13.24, Overvalued between 17.28 and 19.30, and Strongly Overvalued above 19.30. The current Forward EV/EBIT of 18.84 falls within the Overvalued range.

0.32

Archer-Daniels-Midland Co. (ADM) has a current PS of 0.32. The 5-year average PS is 0.40. The thresholds are as follows: Strongly Undervalued below 0.24, Undervalued between 0.24 and 0.32, Fairly Valued between 0.48 and 0.32, Overvalued between 0.48 and 0.56, and Strongly Overvalued above 0.56. The current Forward PS of 0.32 falls within the Historic Trend Line -Fairly Valued range.

9.41

P/OCF

Archer-Daniels-Midland Co. (ADM) has a current P/OCF of 9.41. The 5-year average P/OCF is 9.91. The thresholds are as follows: Strongly Undervalued below 4.89, Undervalued between 4.89 and 7.40, Fairly Valued between 12.42 and 7.40, Overvalued between 12.42 and 14.92, and Strongly Overvalued above 14.92. The current Forward P/OCF of 9.41 falls within the Historic Trend Line -Fairly Valued range.

29.57

P/FCF

Archer-Daniels-Midland Co. (ADM) has a current P/FCF of 29.57. The 5-year average P/FCF is 15.97. The thresholds are as follows: Strongly Undervalued below 6.85, Undervalued between 6.85 and 11.41, Fairly Valued between 20.54 and 11.41, Overvalued between 20.54 and 25.10, and Strongly Overvalued above 25.10. The current Forward P/FCF of 29.57 falls within the Strongly Overvalued range.

Archer-Daniels-Midland Co (ADM) has a current Price-to-Book (P/B) ratio of 1.27. Compared to its 3-year average P/B ratio of 1.47 , the current P/B ratio is approximately -13.72% higher. Relative to its 5-year average P/B ratio of 1.56, the current P/B ratio is about -18.32% higher. Archer-Daniels-Midland Co (ADM) has a Forward Free Cash Flow (FCF) yield of approximately 14.31%. Compared to its 3-year average FCF yield of 7.61%, the current FCF yield is approximately 88.12% lower. Relative to its 5-year average FCF yield of 4.28% , the current FCF yield is about 234.44% lower.

1.27

P/B

Median3y

1.47

Median5y

1.56

14.31

FCF Yield

Median3y

7.61

Median5y

4.28

Competitors Valuation Multiple

The average P/S ratio for ADM's competitors is 0.77, providing a benchmark for relative valuation. Archer-Daniels-Midland Co Corp (ADM) exhibits a P/S ratio of 0.32, which is -58.10% above the industry average. Given its robust revenue growth of -4.86%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

ADM.N

Archer-Daniels-Midland Co

Performance Decomposition

Market capitalization of ADM decreased by 2.16% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 16.84 to 26.11.

The secondary factor is the Revenue Growth, contributed -4.86%to the performance.

Overall, the performance of ADM in the past 1 year is driven by P/E Change. Which is more unsustainable.

-4.86%

22.25B → 21.17B

Revenue Growth

-52.31%

2.16 → 1.03

Margin Expansion

55.01%

16.84 → 26.11

P/E Change

-2.16%