Archer-Daniels-Midland Company (ADM) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-2.5%

$73.66

vs $75.54 price

Levered DCF

$88.43

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

3.21

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	25.78×	13.8×	11.21×	12.03×	14.08×	15.95×	18.92×	12.76×
P/B	1.22×	1.09×	1.62×	2.15×	1.7×	1.41×	1.36×	1.22×
P/S	0.35×	0.28×	0.42×	0.51×	0.45×	0.44×	0.4×	0.36×
EV / EBITDA	12×	8.55×	7.88×	9.23×	10.44×	12.09×	11.77×	8.77×
Gross margin	6.3%	6.8%	8.0%	7.5%	7.0%	6.9%	6.4%	6.5%
Operating margin	1.8%	2.4%	4.3%	4.1%	3.5%	2.7%	2.6%	3.1%
Net margin	1.3%	2.1%	3.7%	4.3%	3.2%	2.8%	2.1%	2.8%
Current ratio	1.37×	1.39×	1.6×	1.46×	1.45×	1.5×	1.55×	1.75×
Debt / equity	0.43×	0.52×	0.4×	0.42×	0.47×	0.55×	0.51×	0.44×
Interest coverage	2.33×	2.93×	6.21×	10.4×	10.54×	5.52×	4.1×	5.52×
Dividend yield	3.5%	4.1%	2.5%	1.7%	2.2%	2.9%	3.0%	3.3%
Payout ratio	91.6%	54.7%	28.1%	20.7%	30.8%	45.7%	57.2%	41.9%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	4.7%	8.1%	14.4%	17.9%	12.1%	8.9%	7.2%	9.5%
Return on invested capital	3.5%	4.5%	9.0%	9.4%	6.9%	4.9%	4.5%	6.0%
Return on assets	2.1%	3.4%	6.4%	7.3%	4.8%	3.6%	3.1%	4.4%
Free cash flow yield	15.1%	5.1%	7.6%	4.1%	14.2%	-11.3%	-24.1%	-24.3%
Earnings yield	3.9%	7.5%	8.9%	8.3%	7.1%	6.3%	5.3%	7.8%
Enterprise value	$36.6B	$35.1B	$47.3B	$61.4B	$47.8B	$38.7B	$35.1B	$29.5B
Net debt / EBITDA	2.87×	2.66×	1.37×	1.39×	2.11×	3.25×	3.03×	1.9×
Cash conversion cycle (days)	47	53	49	54	62	72	62	54