Archer-Daniels-Midland Company logo ADM - Archer-Daniels-Midland Company

Price: -- -- | CONSENSUS: Hold DETAILS
STRONG
BUY
0
BUY 12
HOLD 21
SELL 3
STRONG
SELL
0
| PRICE TARGET: $74.00 DETAILS
HIGH: $90.00
LOW: $58.00
MEDIAN: $74.00
CONSENSUS: $74.00
DOWNSIDE: 4.54%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 80% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Overvalued Moderate
Trading 39.1% above fair value
Current Price $77.52
Bear Case $44.58 42.5% downside ($44.58 - $77.52) / $77.52 = -42.5% $4.79 × 8x P/E
Fair Value $55.73 28.1% downside ($55.73 - $77.52) / $77.52 = -28.1% $4.79 × 10x P/E
Bull Case $66.88 13.7% downside ($66.88 - $77.52) / $77.52 = -13.7% $4.79 × 12x P/E

Adjust Assumptions

10.0x
4.79$

Key Value Driver

Normalized P/E multiple (10x base case)

Implied Market Multiple 16.2x

Plain-Language Summary

Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $74.00 from 36 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $55.73 per share.

Warnings

The company's reported profits differ from official accounting profits by 115%. Check what costs are being left out of the adjusted number.
The company pays out 92% of its profits as dividends. That leaves little cushion — the dividend could be cut if business slows down.
Dividend-based valuation: $108.69 (above our primary estimate by 127%). Large gaps may signal the dividend doesn't reflect full earning power.
Wall Street's average price target is $74.00 (from 36 analysts). Our estimate is 35% below the consensus -- consider that gap carefully.

Key Risks

  • Growth DCF inappropriate — terminal value assumptions dominate
  • EV/EBITDA misleading for regulated businesses where capex is mandated
  • Regulatory risk is a fat tail not visible in normal multiples