Archer Daniels Midland Stock Market Value
| ADM Stock | USD 53.13 0.06 0.11% |
| Symbol | Archer |
Archer Daniels Midland Price To Book Ratio
Is Agricultural Products & Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Archer Daniels. If investors know Archer will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Archer Daniels listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.42) | Earnings Share 3.56 | Revenue Per Share 171.202 | Quarterly Revenue Growth (0.12) | Return On Assets 0.0342 |
The market value of Archer Daniels Midland is measured differently than its book value, which is the value of Archer that is recorded on the company's balance sheet. Investors also form their own opinion of Archer Daniels' value that differs from its market value or its book value, called intrinsic value, which is Archer Daniels' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Archer Daniels' market value can be influenced by many factors that don't directly affect Archer Daniels' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Archer Daniels' value and its price as these two are different measures arrived at by different means. Investors typically determine if Archer Daniels is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Archer Daniels' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Archer Daniels 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Archer Daniels' stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Archer Daniels.
| 12/06/2022 |
| 11/25/2024 |
If you would invest 0.00 in Archer Daniels on December 6, 2022 and sell it all today you would earn a total of 0.00 from holding Archer Daniels Midland or generate 0.0% return on investment in Archer Daniels over 720 days. Archer Daniels is related to or competes with Adecoagro, Cal Maine, Tyson Foods, Fresh Del, Bunge, Dole PLC, and Limoneira. Archer-Daniels-Midland Company procures, transports, stores, processes, and merchandises agricultural commodities, produ... More
Archer Daniels Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Archer Daniels' stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Archer Daniels Midland upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.18) | |||
| Maximum Drawdown | 9.15 | |||
| Value At Risk | (2.23) | |||
| Potential Upside | 2.1 |
Archer Daniels Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Archer Daniels' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Archer Daniels' standard deviation. In reality, there are many statistical measures that can use Archer Daniels historical prices to predict the future Archer Daniels' volatility.| Risk Adjusted Performance | (0.07) | |||
| Jensen Alpha | (0.22) | |||
| Total Risk Alpha | (0.39) | |||
| Treynor Ratio | (0.26) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Archer Daniels' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Archer Daniels Midland Backtested Returns
Archer Daniels Midland secures Sharpe Ratio (or Efficiency) of -0.12, which signifies that the company had a -0.12% return per unit of standard deviation over the last 3 months. Archer Daniels Midland exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Archer Daniels' risk adjusted performance of (0.07), and Mean Deviation of 1.08 to double-check the risk estimate we provide. The firm shows a Beta (market volatility) of 0.58, which signifies possible diversification benefits within a given portfolio. As returns on the market increase, Archer Daniels' returns are expected to increase less than the market. However, during the bear market, the loss of holding Archer Daniels is expected to be smaller as well. At this point, Archer Daniels Midland has a negative expected return of -0.18%. Please make sure to confirm Archer Daniels' coefficient of variation, value at risk, rate of daily change, as well as the relationship between the total risk alpha and kurtosis , to decide if Archer Daniels Midland performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.56 |
Modest predictability
Archer Daniels Midland has modest predictability. Overlapping area represents the amount of predictability between Archer Daniels time series from 6th of December 2022 to 1st of December 2023 and 1st of December 2023 to 25th of November 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Archer Daniels Midland price movement. The serial correlation of 0.56 indicates that roughly 56.0% of current Archer Daniels price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.56 | |
| Spearman Rank Test | 0.27 | |
| Residual Average | 0.0 | |
| Price Variance | 28.25 |
Archer Daniels Midland lagged returns against current returns
Autocorrelation, which is Archer Daniels stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Archer Daniels' stock expected returns. We can calculate the autocorrelation of Archer Daniels returns to help us make a trade decision. For example, suppose you find that Archer Daniels has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Archer Daniels regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Archer Daniels stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Archer Daniels stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Archer Daniels stock over time.
Current vs Lagged Prices |
| Timeline |
Archer Daniels Lagged Returns
When evaluating Archer Daniels' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Archer Daniels stock have on its future price. Archer Daniels autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Archer Daniels autocorrelation shows the relationship between Archer Daniels stock current value and its past values and can show if there is a momentum factor associated with investing in Archer Daniels Midland.
Regressed Prices |
| Timeline |
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Archer Daniels technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.