Bottom Line:
π HOLD: ADM is fairly valued with market pricing in 3.5% annual growth. Fine to hold or accumulate slowly on dips.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)50% (Hyper Growth)
EST. PRICE IN 2031
$117.32
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$72.85
7.6% Margin of Safety
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 14.2x Exit PE.
Valuation Analysis: ADM is currently trading at $67.31, which is considered extended relative to its 30-day fair value range of $58.70 to $66.70. From a valuation perspective, the stock is trading at a premium (Forward PE: 15.8) compared to its historical average (14.2). At these levels, the market is pricing in 3.5% annual earnings growth. This growth rate appears achievable given the company's track record, suggesting the valuation is rational.
Technical Outlook: Technically, ADM is in a strong uptrend. Immediate support is located at $63.94, while resistance sits at $69.75.
Market Sentiment: ADM has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. However, the stock is trading significantly above the average Wall Street target of $57.91. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
EXTENDED
Fair Price Range
$58.70 -
$66.70
Company Quality Score
65/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
53.3%
Protect Your Profits
Holding ADM? Use our AI-powered strategies to protect your downside while keeping your long-term position.
Archer-Daniels-Midland is a major processor of oilseeds, corn, wheat, and other agricultural commodities. The company is also one of the largest grain merchandisers through its extensive network of logistical assets to store and transport crops around the globe. ADM also runs a nutrition business that focuses on both human and animal ingredients and is a large producer of corn-based sweeteners, starches, and ethanol.