Archer-Daniels-Midland Company
AI Valuation
AI-generated fair value estimate for this company.
AI Fair Value
$98.47
Market Price
$82.46
Undervalued By
16.3%
Method: 10-year unlevered FCF DCF: $4.204B FY2025 free cash flow base; 1.5% annual FCF growth throughout the 10-year projection; 9.5% discount rate (elevated for accounting-related governance uncertainty); 2% terminal growth; approximately $8.249B net debt; 476M shares outstanding.
Reasoning: ADM's operating margin has compressed sharply (1.8% in FY2025) following its 2024 accounting investigation, so low growth and an elevated discount rate were used to reflect both a depressed near-term earnings base and lingering governance/trust risk, despite the company's still-substantial free cash flow generation.