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Archer-Daniels-Midland Company (ADM) Fair Value & Analysis

Consumer Defensive · US · Market cap $39.7B · ISIN US0394831020

What is Archer-Daniels-Midland Company really worth?

AD Archer-Daniels-Midland Company logo Archer-Daniels-Midland Company ADM · US
Price$84.38
Fair Value$49.20
Upside−41.7%
Quality65/100

A solid business, but trading 72% above our fair value of $49.20.

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Strengths

Low debt · generates free cash flow

Risks

!Weak Growth (revenue 5y +4.5 %/yr)
!Thin margins · 1.3% net margin
!Trails peers (2/15)
!Narrow moat 33/100
!Weak on future: 8 out of 100
!Weak on past: 19 out of 100

For context

·2.43% dividend yield
Evidence: High Range $36.90 – $61.50

Fair value as of: Aug 30, 2026

From 25 valuation models · updated 6 days ago

Fair value updated Aug 30, 2026, revised from $38.02 to $49.20 (+29.4%) since Aug 27, 2026. Share price +5.6% over the past month.

What runs behind every stock

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

What matters now

  • The price sits above even our optimistic bull case ($61.50). The favourable scenario is already priced in.
  • Solid but not exceptional quality (65/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

$87.44 $40.10 Fair Value $49.20 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 30, 2026.

How to read this chart

60‑month range $40.10 – $87.44 · fair‑value band $36.90 – $61.50 · the $84.38 price screens above the $49.20 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 30, 2026.

Full chart & analysis →

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Analysis

Archer-Daniels-Midland Company (ADM) currently trades at $84.38, while our model-based Fair Value estimate is $49.20, implying the stock looks roughly 71.5% overvalued today. The Quality Score stands at 65/100 (solid quality), in the Consumer Defensive sector. Bull case: the DCF Models group reads highest at a median of $67.18 per share, and 2 of the 25 models we run sit above the $84.38 price. Bear case: the Earnings-Based group reads lowest at $14.95, and 23 of the 25 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Archer-Daniels-Midland Company generated revenue of $80.6B at a net margin of 1.3%. Revenue grew 1.6% year over year. It earns a return on equity of 4.8%. Net debt stands at $7.4B. Fundamentals as of Aug 30, 2026

Our scenario range runs from $36.90 (bear case) to $61.50 (bull case); at $84.38, 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 1% below its 52-week high and 84% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at 18% fair-value upside, at −42%, ADM screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $0.1286 per share, which is 0.3 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

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
FCF DCF $79.01 $119.72 $177.60 77
Growth DCF $81.77 $119.71 $171.40 76
Residual Income $36.29 $36.97 $35.39 74
All 25 models by family
DCF Models
FCF DCF $79.01 $119.72 $177.60 77
Owner Earnings $8.60 $18.39 $32.31 71
5Y Revenue Exit $36.05 $51.33 $69.16 71
5Y EBITDA Exit $49.35 $74.93 $102.84 73
5Y P/E Exit $39.63 $57.67 $75.14 69
10Y Revenue Exit $50.56 $67.18 $86.15 66
10Y EBITDA Exit $59.64 $83.11 $110.64 67
10Y P/E Exit $53.57 $71.46 $90.49 63
Earnings-Based
Graham-Dodd $15.21 $35.17 $45.16 63
PEG = 1.0 $5.93 $8.48 $11.02 55
EPV $10.85 $14.95 $18.52 73
Dividend Discount
Gordon GGM $18.80 $31.68 $46.99 65
DDM Multi-Stage $18.80 $27.70 $37.57 64
Multiples
P/E Multiple $35.23 $46.97 $58.71 63
P/S Multiple $28.52 $38.02 $47.53 58
P/B Multiple $28.52 $38.02 $47.53 55
EV/EBIT $23.98 $36.54 $49.10 65
EV/EBITDA $39.01 $56.58 $74.14 67
EV/Revenue $13.20 $24.72 $36.25 52
Asset-Based
NCAV (Graham) $23.58 $31.60 $47.17 54
Growth DCF
Growth DCF $81.77 $119.71 $171.40 76
Rev-Margin DCF $36.05 $52.97 $71.68 71
Economic Profit
Residual Income $36.29 $36.97 $35.39 74
ROIC Compounder $10.85 $14.95 $18.52 70
Growth Earnings
Growth-Adj P/E $26.54 $37.92 $49.29 65

Widest divergence: DCF Models ($67.18) versus Earnings-Based ($14.95). Highest evidence: FCF DCF (77).

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Key figures & financial health

P/E ratio 37.7
P/S ratio 0.51 P/E × margin
EPS (TTM) $2.24 price ÷ EPS = P/E 37.7
Dividend yield 2.4% payout 91.5%
Net margin 1.3% FY2025
Return on equity 4.8% TTM
More key figures
Profitability
Return on assets (EBIT) 5.6% avg 5y
Operating margin 1.3% TTM
Growth
Revenue (TTM) $80.6B TTM
Revenue growth (YoY) +1.6% 3y avg −7.5%
EPS growth (YoY) +0.9%
Balance sheet & cash flow
Free cash flow $4.2B FY2025
Net debt $7.4B FY2025 · ≈ 1.8 yrs of FCF

Figures from reported company fundamentals · as of Aug 30, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 65/100

Of which business quality 64 · Market factors (momentum, volatility) 75

Profitability 41
Margins and returns on capital today
Quality Growth 47
Are margins and returns improving?
Cashflow 60
Earnings quality: real cash, not paper profit
Fin. Strength 61
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 82
Calm price path (market factor)
Momentum 64
Price trend over the last 3–12 months (market factor)
52W Momentum 87
Distance to the 52-week high (market factor)
Net Issuance 99
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

Archer-Daniels-Midland Company provides human and animal nutrition ingredients and solutions in the United States, Switzerland, the Cayman Islands, Brazil, Mexico, Canada, the United Kingdom, and internationally. It operates in three segments: Ag Services and Oilseeds; Carbohydrate Solutions; and Nutrition.

Full company description

Archer-Daniels-Midland Company provides human and animal nutrition ingredients and solutions in the United States, Switzerland, the Cayman Islands, Brazil, Mexico, Canada, the United Kingdom, and internationally. It operates in three segments: Ag Services and Oilseeds; Carbohydrate Solutions; and Nutrition. The company engages in the origination, merchandising, transportation, and storage of agricultural raw materials, as well as the crushing and processing of oilseeds, including soybeans and soft seeds, such as cottonseed, sunflower seed, canola, rapeseed, and flaxseed; produces and markets vegetable oils and oilseed protein meals used by food, feed, energy, and industrial customers; sale of crude and partially refined vegetable oils; supplies peanuts and peanut-derived ingredients; and manufactures cotton cellulose pulp. It is also involved in the grain sourcing, handling, and multimodal transportation network supporting import, export, and distribution activities; structured trade finance activities; corn and wheat wet and dry milling and related processing activities; production of distillers' grains, corn gluten feed, and corn gluten meal for use as animal feed ingredients; and carbon capture and sequestration and other emissions-reduction initiatives. In addition, the company engages in the creation, manufacturing, sale, and distribution of an array of ingredients and solutions comprising plant-based proteins, flavors and colors derived from nature, flavor systems, emulsifiers, soluble fiber, polyols, hydrocolloids, probiotics, prebiotics, postbiotics, enzymes, botanical extracts, and other specialty food and feed ingredients and systems. Further, it is involved in the derivatives and commodity exchanges and clearing houses; and insurance coverage for certain property, casualty, marine, medical, and other miscellaneous risks. The company was founded in 1902 and is based in Chicago, Illinois.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Archer-Daniels-Midland Company reported revenue of $80.3B in FY2025 versus $85.2B in FY2021, a compound −1.5%/yr. Reported net income was $1.1B in FY2025, compounding −20.6%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
$80.3B
Latest YoY
−6.2%
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.
−7.5%
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.
+4.5%
Avg. revenue growth/yr (40Y) 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.
+6.8%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
−4.3% (−6.7 + 2.4)
Revenue −1.5%/yr
FY21 $85.2B
FY22 $102B
FY23 $93.9B
FY24 $85.5B
FY25 $80.3B
Net income −20.6%/yr
FY21 $2.7B
FY22 $4.3B
FY23 $3.5B
FY24 $1.8B
FY25 $1.1B
Character of growth · EPS growth decomposed (2014-2025) +4.3 % p.a.
Revenue per share +4.7 %

of which total revenue +2.3 % · buybacks/dilution +2.3 %

EBIT margin −0.5 %
Tax rate +1.0 %
Residual (interest, one-offs) −0.8 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

ADM screens 72% overvalued. Compare with Muyuan Foods Group →

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Cite: Fair Value Calculator (2026). "Archer-Daniels-Midland Company Fair Value". https://www.fairvalue-calculator.com/stock/ADM

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Farm Products · 293 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 65 · Top 25%
Fair Value upside −42% · Below median
Return on equity (TTM) 5% · Below median
Return on assets 2% · Below median
Net margin (TTM) 1% · Below median
Operating margin (TTM) 1% · Below median
Revenue growth 2% · Below median
Dividend yield (TTM) 2.4% · Below median
Debt / equity 0.34× · Higher than median

Valuation Multiples vs Farm Products median · lower = cheaper

P/E (TTM) 37.7× · Pricier than 75% of peers
P/B 1.74× · Pricier than 75% of peers
P/S (TTM) 0.49× · Cheaper than median
P/FCF 9.4× · Pricier than 75% of peers
EV/EBITDA 18.2× · Pricier than 75% of peers
PEG 2.49× · Pricier than 75% of peers

Strength profile in five axes (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
VALUE0 · sector 25
FUTURE8 · sector 21
PAST19 · sector 19
HEALTH83 · sector 94
DIVIDEND49 · sector 49

VALUE 0: the price sits above our fair-value range.

Insider activity: 44/100

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

Similar stocks

10 more Farm Products stocks, each showing price versus our Fair Value estimate (as of Aug 30, 2026).

Stock Price Fair Value vs Fair Value
Muyuan Foods Group 002714 ¥40.15 ¥47.42 +18%
Bunge Global SA BG $111.57 $56.19 −50%
Tyson Foods, Inc TSN $55.40 $28.60 −48%
Wens Foodstuff Group 300498 ¥13.80 ¥11.18 −19%
Mowi ASA MOWI kr 201.80 kr 256.14 +27%
Fujian Wanchen Food Group 300972 ¥201.06 ¥143.09 −29%
United Plantations Berhad 2089 32.60 MYR 23.34 MYR −28%
Charoen Pokphand Foods Public Company CPF 23.40 THB 43.24 THB +85%
PT Charoen Pokphand Indonesia Tbk, CPIN 2,960 IDR 6,818 IDR +130%
L.D.C. S.A LOUP €112.20 €184.99 +65%

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Frequently asked questions

Is Archer-Daniels-Midland Company (ADM) overvalued or undervalued?
As of Aug 30, 2026, our model estimates a fair value of $49.20 versus a price of $84.38, about −42% upside (overvalued).
What is the fair value of ADM?
Our model-based fair value for Archer-Daniels-Midland Company is $49.20 (as of Aug 30, 2026), built from audited fundamentals. The current price: $84.38.
What is the quality score of ADM?
Archer-Daniels-Midland Company has a Quality Score of 65/100. 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 Archer-Daniels-Midland Company (ADM)?
Archer-Daniels-Midland Company reported trailing-twelve-month revenue of about $80.6B (latest available figure, as of Aug 30, 2026).
What is the net profit margin of ADM?
The net profit margin of Archer-Daniels-Midland Company is about 1.3%, meaning it keeps roughly 1.3% of revenue as net income. Based on the latest reported figures.
Does Archer-Daniels-Midland Company pay a dividend?
Archer-Daniels-Midland Company currently shows a dividend yield of about 2.43% relative to its recent price (as of Aug 30, 2026).
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