Archer Daniels Valuation
| ADM Stock | USD 65.43 1.91 2.84% |
At this time, the firm appears to be overvalued. Archer Daniels Midland shows a prevailing Real Value of $61.6 per share. The current price of the firm is $65.43. Our model approximates the value of Archer Daniels Midland from analyzing the firm fundamentals such as profit margin of 0.01 %, and Return On Equity of 0.0472 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Archer Daniels' valuation include:
Price Book 1.4054 | Enterprise Value | Enterprise Value Ebitda 13.033 | Price Sales 0.3917 | Forward PE 14.8368 |
Overvalued
Today
Please note that Archer Daniels' price fluctuation is very steady at this time. Calculation of the real value of Archer Daniels Midland is based on 3 months time horizon. Increasing Archer Daniels' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Archer stock is determined by what a typical buyer is willing to pay for full or partial control of Archer Daniels Midland. Since Archer Daniels is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Archer Stock. However, Archer Daniels' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 65.43 | Real 61.6 | Target 59.64 | Hype 65.07 | Naive 63.46 |
The intrinsic value of Archer Daniels' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Archer Daniels' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Archer Daniels Midland helps investors to forecast how Archer stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Archer Daniels more accurately as focusing exclusively on Archer Daniels' fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Archer Daniels' intrinsic value based on its ongoing forecasts of Archer Daniels' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Archer Daniels' closest peers.
Archer Daniels Cash |
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Archer Revenue by Product
Archer Daniels Total Value Analysis
Archer Daniels Midland is presently forecasted to have company total value of 39.72 B with market capitalization of 31.44 B, debt of 8.41 B, and cash on hands of 1.01 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Archer Daniels fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
39.72 B | 31.44 B | 8.41 B | 1.01 B |
Archer Daniels Investor Information
About 86.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.41. Some equities with similar Price to Book (P/B) outperform the market in the long run. Archer Daniels Midland last dividend was issued on the 17th of February 2026. The entity had 105:100 split on the 30th of August 2001. Based on the key indicators related to Archer Daniels' liquidity, profitability, solvency, and operating efficiency, Archer Daniels Midland may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.0169 | 0.0177 |
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| Operating Income | 1.7 B | 1.4 B |
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Archer Daniels Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Archer Daniels has an asset utilization ratio of 231.6 percent. This suggests that the Company is making $2.32 for each dollar of assets. An increasing asset utilization means that Archer Daniels Midland is more efficient with each dollar of assets it utilizes for everyday operations.Archer Daniels Profitability Analysis
Based on Archer Daniels' profitability indicators, Archer Daniels' profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Archer Daniels' ability to earn profits and add value for shareholders.Net Income | First Reported 1985-09-30 | Previous Quarter 108 M | Current Value 456 M | Quarterly Volatility 264.7 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.0971 | 0.0627 |
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| Net Profit Margin | 0.0128 | 0.0134 |
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| Operating Profit Margin | 0.0169 | 0.0177 |
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| Pretax Profit Margin | 0.0149 | 0.0156 |
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| Return On Assets | 0.0549 | 0.0311 |
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| Return On Equity | 0.045 | 0.0474 |
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For Archer Daniels profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Archer Daniels Midland to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Archer Daniels utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Archer Daniels's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Archer Daniels over time as well as its relative position and ranking within its peers.
Archer Daniels Earnings per Share Projection vs Actual
The next projected EPS of Archer Daniels is estimated to be 0.7806 with future projections ranging from a low of 0.66 to a high of 1.089. Archer Daniels' most recent 12-month trailing earnings per share (EPS TTM) is at 2.17. Please be aware that the consensus of earnings estimates for Archer Daniels Midland is based on EPS before non-recurring items and includes expenses related to employee stock options.Archer Daniels Earnings Estimation Breakdown
The calculation of Archer Daniels' earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of Archer Daniels is estimated to be 0.7806 with the future projection ranging from a low of 0.66 to a high of 1.089. Please be aware that this consensus of annual earnings estimates for Archer Daniels Midland is based on EPS before non-recurring items and includes expenses related to employee stock options.Last Reported EPS
0.66 Lowest | Expected EPS | 1.09 Highest |
Archer Daniels Earnings Projection Consensus
Suppose the current estimates of Archer Daniels' value are higher than the current market price of the Archer Daniels stock. In this case, investors may conclude that Archer Daniels is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Archer Daniels' stock will quickly adjusts to the new information provided by the consensus estimate.
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 31st of March 2026 | Current EPS (TTM) | |
| 12 | 89.7% | 0.87 | 0.7806 | 2.17 |
Archer Daniels Ownership Allocation
Archer Daniels holds a total of 480.57 Million outstanding shares. The majority of Archer Daniels Midland outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Archer Daniels Midland to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Archer Daniels. Please pay attention to any change in the institutional holdings of Archer Daniels Midland as this could imply that something significant has changed or is about to change at the company. Please note that on May 15, 2025, Senator Tommy Tuberville of US Senate acquired $15k to $50k worth of Archer Daniels Midland's common stock.Archer Daniels Profitability Analysis
The company reported the last year's revenue of 80.27 B. Total Income to common stockholders was 1.07 B with profit before taxes, overhead, and interest of 5.03 B.Archer Daniels Past Distributions to stockholders
About Archer Daniels Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Archer Daniels Midland. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Archer Daniels Midland based exclusively on its fundamental and basic technical indicators. By analyzing Archer Daniels's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Archer Daniels's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Archer Daniels. We calculate exposure to Archer Daniels's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Archer Daniels's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 5 B | 3.4 B | |
| Pretax Profit Margin | 0.02 | 0.01 | |
| Operating Profit Margin | 0.02 | 0.02 | |
| Net Profit Margin | 0.01 | 0.01 | |
| Gross Profit Margin | 0.06 | 0.10 |
Archer Daniels Quarterly Retained Earnings |
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A single share of Archer Daniels represents a small ownership stake in the entity. As a stockholder of Archer, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Archer Daniels Dividends Analysis For Valuation
At this time, Archer Daniels' Dividends Paid is very stable compared to the past year. As of the 6th of February 2026, Dividend Yield is likely to grow to 0.04, while Dividend Paid And Capex Coverage Ratio is likely to drop 1.30. . As of the 6th of February 2026, Retained Earnings is likely to grow to about 26.5 B, while Retained Earnings Total Equity is likely to drop about 17.2 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 987 M | 1 B | |
| Dividend Yield | 0.04 | 0.04 | |
| Dividend Payout Ratio | 0.92 | 0.96 | |
| Dividend Paid And Capex Coverage Ratio | 2.44 | 1.30 |
There are various types of dividends Archer Daniels can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Archer shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Archer Daniels Midland directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Archer pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Archer Daniels by the value of the dividends paid out.
Archer Daniels Growth Indicators
Investing in growth stocks can be very risky. If the company such as Archer Daniels does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 484 M | |
| Quarterly Earnings Growth Y O Y | -0.197 | |
| Forward Price Earnings | 14.8368 |
Archer Daniels Current Valuation Indicators
Archer Daniels' valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Archer Daniels' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Archer Daniels, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Archer Daniels' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Archer Daniels' worth.When determining whether Archer Daniels Midland is a strong investment it is important to analyze Archer Daniels' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Archer Daniels' future performance. For an informed investment choice regarding Archer Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Archer Daniels Midland. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in american community survey. You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Will Agricultural Products & Services sector continue expanding? Could Archer diversify its offerings? 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. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Archer Daniels data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth (0.20) | Dividend Share 2.04 | Earnings Share 2.17 | Revenue Per Share | Quarterly Revenue Growth (0.14) |
Understanding Archer Daniels Midland requires distinguishing between market price and book value, where the latter reflects Archer's accounting equity. The concept of intrinsic value - what Archer Daniels' is actually worth based on fundamentals - guides informed investors toward better entry and exit points. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. Market sentiment, economic cycles, and investor behavior can push Archer Daniels' price substantially above or below its fundamental value.
Understanding that Archer Daniels' value differs from its trading price is crucial, as each reflects different aspects of the company. Evaluating whether Archer Daniels represents a sound investment requires analyzing earnings trends, revenue growth, technical signals, industry dynamics, and expert forecasts. In contrast, Archer Daniels' trading price reflects the actual exchange value where willing buyers and sellers reach mutual agreement.