Archer-Daniels-Midland Fair Value
AD
The fair market value of ADM stock is 63.22 USD. Relative to the market price of 51.43 USD Archer-Daniels-Midland is undervalued by 22.9%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
Archer-Daniels-Midland Valuation
Current ADM share ticker price is 51.43 USD.
The fair value level of 63.22 USD can be considered as an effective entry point for long-term investors to start investing in ADM stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 23% lower its fair value
Current price is 1% lower its minimum value
Current price is 59% lower its maximum value
Market price:
ADM stock is greatly undervalued
It means the current price may concern as a Low Risk Entry Point
Archer-Daniels-Midland Co Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
16.39
2
Median P/E over 5 years
12.63
3
Minimum P/E over 5 years
10.4
4
Earning per share (last 12 months)
5 USD
Maximum value
1
x
4
=
81.99 USD
Fair value
2
x
4
=
63.22 USD
Minimum value
3
x
4
=
52.03 USD
Archer-Daniels-Midland Co price metrics
3.68
Annual return (geometric mean)
31.01
Risk (standard deviation) of returns
β
0.7
Beta (volatility compared to market)