Using the industry peer median P/E multiple (trailing + forward), Archer-Daniels-Midland Company (ADM) has a fair value of $73.49 based on 10 comparable companies in the Agricultural Farm Products industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Archer-Daniels-Midland CompanyADM | 35,153 | 32.6x | 18.2x |
| Walmart Inc.WMT | 973,590 | 44.7x | 41.8x |
| Costco Wholesale CorporationCOST | 435,898 | 54.0x | 48.1x |
| The Procter & Gamble CompanyPG | 333,475 | 21.9x | 20.5x |
| The Coca-Cola CompanyKO | 322,705 | 24.7x | 23.2x |
| Philip Morris International Inc.PM | 254,611 | 22.5x | 19.4x |
| PepsiCo, Inc.PEP | 207,088 | 25.2x | 17.6x |
| Altria Group, Inc.MO | 107,066 | 15.5x | 11.7x |
| Mondelez International, Inc.MDLZ | 74,615 | 30.6x | 19.0x |
| Monster Beverage CorporationMNST | 70,777 | 37.3x | 31.9x |
| Colgate-Palmolive CompanyCL | 67,887 | 32.2x | 21.9x |
| Industry Median | 27.9x | 21.2x | |
| (*) Profit after tax | 1,078 | 1,935 | |
| Equity Value | 30,096 | 41,039 | |
| (/) Outstanding shares | 484 | 484 | |
| Fair Price | $62 | $85 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.