Intrinsic value of Archer-Daniels-Midland Company - ADM

Previous Close

$41.08

  Intrinsic Value

$22.86

stock screener

  Rating & Target

sell

-44%

Previous close

$41.08

 
Intrinsic value

$22.86

 
Up/down potential

-44%

 
Rating

sell

We calculate the intrinsic value of ADM stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 23.0

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  65,628
  67,137
  68,863
  70,800
  72,946
  75,301
  77,866
  80,642
  83,633
  86,842
  90,276
  93,940
  97,841
  101,987
  106,386
  111,048
  115,983
  121,202
  126,717
  132,539
  138,682
  145,161
  151,991
  159,186
  166,764
  174,743
  183,142
  191,980
  201,277
  211,057
Variable operating expenses, $m
  56,694
  57,989
  59,469
  61,130
  62,971
  64,992
  67,191
  69,572
  72,137
  74,890
  77,431
  80,574
  83,920
  87,476
  91,249
  95,248
  99,481
  103,958
  108,687
  113,681
  118,951
  124,508
  130,365
  136,537
  143,037
  149,881
  157,084
  164,665
  172,639
  181,027
Fixed operating expenses, $m
  7,217
  7,376
  7,538
  7,704
  7,874
  8,047
  8,224
  8,405
  8,590
  8,779
  8,972
  9,169
  9,371
  9,577
  9,788
  10,003
  10,223
  10,448
  10,678
  10,913
  11,153
  11,398
  11,649
  11,906
  12,167
  12,435
  12,709
  12,988
  13,274
  13,566
Total operating expenses, $m
  63,911
  65,365
  67,007
  68,834
  70,845
  73,039
  75,415
  77,977
  80,727
  83,669
  86,403
  89,743
  93,291
  97,053
  101,037
  105,251
  109,704
  114,406
  119,365
  124,594
  130,104
  135,906
  142,014
  148,443
  155,204
  162,316
  169,793
  177,653
  185,913
  194,593
Operating income, $m
  1,716
  1,772
  1,855
  1,965
  2,101
  2,263
  2,451
  2,665
  2,905
  3,173
  3,873
  4,196
  4,550
  4,933
  5,349
  5,797
  6,279
  6,796
  7,351
  7,945
  8,579
  9,255
  9,976
  10,744
  11,560
  12,427
  13,349
  14,327
  15,364
  16,463
EBITDA, $m
  2,944
  3,019
  3,124
  3,258
  3,421
  3,612
  3,832
  4,081
  4,359
  4,667
  5,006
  5,375
  5,778
  6,213
  6,684
  7,190
  7,734
  8,318
  8,942
  9,608
  10,319
  11,077
  11,884
  12,741
  13,653
  14,621
  15,647
  16,736
  17,890
  19,112
Interest expense (income), $m
  283
  453
  477
  504
  536
  572
  611
  654
  701
  752
  807
  866
  929
  996
  1,067
  1,143
  1,224
  1,309
  1,400
  1,496
  1,597
  1,703
  1,816
  1,935
  2,060
  2,192
  2,331
  2,477
  2,631
  2,793
  2,963
Earnings before tax, $m
  1,263
  1,295
  1,351
  1,429
  1,529
  1,652
  1,797
  1,964
  2,153
  2,366
  3,007
  3,268
  3,554
  3,866
  4,205
  4,573
  4,969
  5,397
  5,856
  6,348
  6,875
  7,439
  8,041
  8,684
  9,368
  10,097
  10,872
  11,696
  12,571
  13,500
Tax expense, $m
  341
  350
  365
  386
  413
  446
  485
  530
  581
  639
  812
  882
  960
  1,044
  1,135
  1,235
  1,342
  1,457
  1,581
  1,714
  1,856
  2,009
  2,171
  2,345
  2,529
  2,726
  2,935
  3,158
  3,394
  3,645
Net income, $m
  922
  946
  986
  1,043
  1,116
  1,206
  1,311
  1,433
  1,572
  1,727
  2,195
  2,386
  2,594
  2,822
  3,070
  3,338
  3,628
  3,940
  4,275
  4,634
  5,019
  5,431
  5,870
  6,339
  6,839
  7,371
  7,936
  8,538
  9,177
  9,855

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  41,642
  42,600
  43,695
  44,924
  46,286
  47,780
  49,407
  51,169
  53,066
  55,103
  57,282
  59,606
  62,082
  64,712
  67,504
  70,462
  73,594
  76,905
  80,404
  84,098
  87,997
  92,107
  96,441
  101,006
  105,815
  110,878
  116,207
  121,814
  127,714
  133,919
Adjusted assets (=assets-cash), $m
  41,642
  42,600
  43,695
  44,924
  46,286
  47,780
  49,407
  51,169
  53,066
  55,103
  57,282
  59,606
  62,082
  64,712
  67,504
  70,462
  73,594
  76,905
  80,404
  84,098
  87,997
  92,107
  96,441
  101,006
  105,815
  110,878
  116,207
  121,814
  127,714
  133,919
Revenue / Adjusted assets
  1.576
  1.576
  1.576
  1.576
  1.576
  1.576
  1.576
  1.576
  1.576
  1.576
  1.576
  1.576
  1.576
  1.576
  1.576
  1.576
  1.576
  1.576
  1.576
  1.576
  1.576
  1.576
  1.576
  1.576
  1.576
  1.576
  1.576
  1.576
  1.576
  1.576
Average production assets, $m
  12,272
  12,555
  12,877
  13,240
  13,641
  14,081
  14,561
  15,080
  15,639
  16,239
  16,882
  17,567
  18,296
  19,072
  19,894
  20,766
  21,689
  22,665
  23,696
  24,785
  25,934
  27,145
  28,422
  29,768
  31,185
  32,677
  34,248
  35,900
  37,639
  39,468
Working capital, $m
  3,085
  3,155
  3,237
  3,328
  3,428
  3,539
  3,660
  3,790
  3,931
  4,082
  4,243
  4,415
  4,599
  4,793
  5,000
  5,219
  5,451
  5,697
  5,956
  6,229
  6,518
  6,823
  7,144
  7,482
  7,838
  8,213
  8,608
  9,023
  9,460
  9,920
Total debt, $m
  8,829
  9,342
  9,928
  10,585
  11,314
  12,113
  12,984
  13,926
  14,941
  16,031
  17,197
  18,440
  19,765
  21,172
  22,666
  24,248
  25,924
  27,695
  29,567
  31,544
  33,629
  35,829
  38,147
  40,589
  43,162
  45,871
  48,722
  51,722
  54,878
  58,198
Total liabilities, $m
  22,278
  22,791
  23,377
  24,034
  24,763
  25,562
  26,433
  27,375
  28,390
  29,480
  30,646
  31,889
  33,214
  34,621
  36,115
  37,697
  39,373
  41,144
  43,016
  44,993
  47,078
  49,278
  51,596
  54,038
  56,611
  59,320
  62,171
  65,171
  68,327
  71,647
Total equity, $m
  19,364
  19,809
  20,318
  20,890
  21,523
  22,218
  22,974
  23,793
  24,676
  25,623
  26,636
  27,717
  28,868
  30,091
  31,389
  32,765
  34,221
  35,761
  37,388
  39,106
  40,918
  42,830
  44,845
  46,968
  49,204
  51,558
  54,036
  56,644
  59,387
  62,272
Total liabilities and equity, $m
  41,642
  42,600
  43,695
  44,924
  46,286
  47,780
  49,407
  51,168
  53,066
  55,103
  57,282
  59,606
  62,082
  64,712
  67,504
  70,462
  73,594
  76,905
  80,404
  84,099
  87,996
  92,108
  96,441
  101,006
  105,815
  110,878
  116,207
  121,815
  127,714
  133,919
Debt-to-equity ratio
  0.460
  0.470
  0.490
  0.510
  0.530
  0.550
  0.570
  0.590
  0.610
  0.630
  0.650
  0.670
  0.680
  0.700
  0.720
  0.740
  0.760
  0.770
  0.790
  0.810
  0.820
  0.840
  0.850
  0.860
  0.880
  0.890
  0.900
  0.910
  0.920
  0.930
Adjusted equity ratio
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  922
  946
  986
  1,043
  1,116
  1,206
  1,311
  1,433
  1,572
  1,727
  2,195
  2,386
  2,594
  2,822
  3,070
  3,338
  3,628
  3,940
  4,275
  4,634
  5,019
  5,431
  5,870
  6,339
  6,839
  7,371
  7,936
  8,538
  9,177
  9,855
Depreciation, amort., depletion, $m
  1,228
  1,247
  1,268
  1,293
  1,320
  1,349
  1,381
  1,416
  1,454
  1,494
  1,133
  1,179
  1,228
  1,280
  1,335
  1,394
  1,456
  1,521
  1,590
  1,663
  1,741
  1,822
  1,908
  1,998
  2,093
  2,193
  2,298
  2,409
  2,526
  2,649
Funds from operations, $m
  2,150
  2,192
  2,254
  2,336
  2,436
  2,555
  2,693
  2,850
  3,026
  3,221
  3,328
  3,564
  3,822
  4,102
  4,405
  4,732
  5,083
  5,461
  5,865
  6,297
  6,760
  7,252
  7,778
  8,337
  8,932
  9,564
  10,235
  10,947
  11,703
  12,504
Change in working capital, $m
  60
  71
  81
  91
  101
  111
  121
  130
  141
  151
  161
  172
  183
  195
  207
  219
  232
  245
  259
  274
  289
  305
  321
  338
  356
  375
  395
  415
  437
  460
Cash from operations, $m
  2,089
  2,121
  2,173
  2,245
  2,335
  2,444
  2,572
  2,719
  2,885
  3,070
  3,167
  3,392
  3,639
  3,907
  4,198
  4,513
  4,851
  5,215
  5,606
  6,024
  6,471
  6,948
  7,457
  7,999
  8,575
  9,189
  9,840
  10,532
  11,266
  12,044
Maintenance CAPEX, $m
  -808
  -824
  -843
  -864
  -889
  -915
  -945
  -977
  -1,012
  -1,050
  -1,090
  -1,133
  -1,179
  -1,228
  -1,280
  -1,335
  -1,394
  -1,456
  -1,521
  -1,590
  -1,663
  -1,741
  -1,822
  -1,908
  -1,998
  -2,093
  -2,193
  -2,298
  -2,409
  -2,526
New CAPEX, $m
  -237
  -282
  -323
  -362
  -401
  -440
  -480
  -519
  -559
  -600
  -642
  -685
  -729
  -775
  -823
  -872
  -923
  -976
  -1,031
  -1,089
  -1,149
  -1,212
  -1,277
  -1,346
  -1,417
  -1,492
  -1,571
  -1,653
  -1,739
  -1,829
Cash from investing activities, $m
  -1,045
  -1,106
  -1,166
  -1,226
  -1,290
  -1,355
  -1,425
  -1,496
  -1,571
  -1,650
  -1,732
  -1,818
  -1,908
  -2,003
  -2,103
  -2,207
  -2,317
  -2,432
  -2,552
  -2,679
  -2,812
  -2,953
  -3,099
  -3,254
  -3,415
  -3,585
  -3,764
  -3,951
  -4,148
  -4,355
Free cash flow, $m
  1,044
  1,015
  1,008
  1,018
  1,045
  1,088
  1,148
  1,223
  1,314
  1,421
  1,435
  1,574
  1,731
  1,904
  2,096
  2,306
  2,535
  2,784
  3,053
  3,345
  3,659
  3,996
  4,358
  4,746
  5,160
  5,604
  6,077
  6,581
  7,118
  7,689
Issuance/(repayment) of debt, $m
  441
  512
  586
  658
  729
  799
  871
  942
  1,015
  1,090
  1,166
  1,244
  1,324
  1,407
  1,493
  1,583
  1,675
  1,772
  1,872
  1,976
  2,086
  2,199
  2,318
  2,443
  2,573
  2,709
  2,851
  3,000
  3,156
  3,320
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  441
  512
  586
  658
  729
  799
  871
  942
  1,015
  1,090
  1,166
  1,244
  1,324
  1,407
  1,493
  1,583
  1,675
  1,772
  1,872
  1,976
  2,086
  2,199
  2,318
  2,443
  2,573
  2,709
  2,851
  3,000
  3,156
  3,320
Total cash flow (excl. dividends), $m
  1,486
  1,528
  1,594
  1,676
  1,774
  1,888
  2,018
  2,165
  2,329
  2,510
  2,600
  2,818
  3,055
  3,312
  3,589
  3,888
  4,210
  4,555
  4,925
  5,321
  5,744
  6,195
  6,676
  7,188
  7,733
  8,312
  8,928
  9,581
  10,274
  11,009
Retained Cash Flow (-), $m
  -368
  -445
  -509
  -572
  -633
  -695
  -757
  -819
  -882
  -947
  -1,013
  -1,081
  -1,151
  -1,223
  -1,298
  -1,376
  -1,456
  -1,540
  -1,627
  -1,718
  -1,813
  -1,912
  -2,015
  -2,123
  -2,236
  -2,354
  -2,478
  -2,608
  -2,743
  -2,885
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  1,118
  1,082
  1,085
  1,104
  1,141
  1,193
  1,262
  1,346
  1,447
  1,563
  1,587
  1,737
  1,904
  2,088
  2,291
  2,513
  2,754
  3,016
  3,298
  3,603
  3,931
  4,284
  4,661
  5,065
  5,497
  5,958
  6,450
  6,973
  7,531
  8,124
Discount rate, %
  6.00
  6.30
  6.62
  6.95
  7.29
  7.66
  8.04
  8.44
  8.86
  9.31
  9.77
  10.26
  10.78
  11.31
  11.88
  12.47
  13.10
  13.75
  14.44
  15.16
  15.92
  16.72
  17.55
  18.43
  19.35
  20.32
  21.33
  22.40
  23.52
  24.70
PV of cash for distribution, $m
  1,055
  958
  895
  844
  802
  766
  734
  704
  674
  642
  569
  538
  503
  466
  425
  383
  340
  297
  254
  214
  177
  143
  113
  87
  66
  49
  35
  24
  16
  11
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Archer-Daniels-Midland Company is a processor of oilseeds, corn, wheat, cocoa and other agricultural commodities. The Company manufactures protein meal, vegetable oil, corn sweeteners, flour, biodiesel, ethanol, and other food and feed ingredients. Its segments include Agricultural Services, which utilizes its United States grain elevator, global transportation network and port operations to buy, store, clean and transport agricultural commodities, such as oilseeds, wheat, milo, oats, rice and barley, and resells these commodities primarily as food and feed ingredients and as raw materials for the agricultural processing industry; Corn Processing, which is engaged in corn wet milling and dry milling activities; Oilseeds Processing, which includes global activities related to the origination, merchandising, crushing and further processing of oilseeds; Wild Flavors and Specialty Ingredients products, which include flavors, sweeteners and health ingredients; Other, and Corporate.

FINANCIAL RATIOS  of  Archer-Daniels-Midland Company (ADM)

Valuation Ratios
P/E Ratio 18.4
Price to Sales 0.4
Price to Book 1.4
Price to Tangible Book
Price to Cash Flow 16
Price to Free Cash Flow 39.7
Growth Rates
Sales Growth Rate -7.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -21.6%
Cap. Spend. - 3 Yr. Gr. Rate -0.7%
Financial Strength
Quick Ratio 2
Current Ratio 0.5
LT Debt to Equity 37.9%
Total Debt to Equity 40.4%
Interest Coverage 7
Management Effectiveness
Return On Assets 3.7%
Ret/ On Assets - 3 Yr. Avg. 4.8%
Return On Total Capital 5.3%
Ret/ On T. Cap. - 3 Yr. Avg. 7.2%
Return On Equity 7.3%
Return On Equity - 3 Yr. Avg. 9.5%
Asset Turnover 1.6
Profitability Ratios
Gross Margin 5.9%
Gross Margin - 3 Yr. Avg. 5.9%
EBITDA Margin 4.8%
EBITDA Margin - 3 Yr. Avg. 5.1%
Operating Margin 2.5%
Oper. Margin - 3 Yr. Avg. 2.8%
Pre-Tax Margin 2.9%
Pre-Tax Margin - 3 Yr. Avg. 3.4%
Net Profit Margin 2.1%
Net Profit Margin - 3 Yr. Avg. 2.5%
Effective Tax Rate 29.3%
Eff/ Tax Rate - 3 Yr. Avg. 25.5%
Payout Ratio 54.8%

ADM stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ADM stock intrinsic value calculation we used $64341 million for the last fiscal year's total revenue generated by Archer-Daniels-Midland Company. The default revenue input number comes from 0001 income statement of Archer-Daniels-Midland Company. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our ADM stock valuation model: a) initial revenue growth rate of 2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 6%, whose default value for ADM is calculated based on our internal credit rating of Archer-Daniels-Midland Company, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Archer-Daniels-Midland Company.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of ADM stock the variable cost ratio is equal to 86.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $7062 million in the base year in the intrinsic value calculation for ADM stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Archer-Daniels-Midland Company.

Corporate tax rate of 27% is the nominal tax rate for Archer-Daniels-Midland Company. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the ADM stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for ADM are equal to 18.7%.

Life of production assets of 14.9 years is the average useful life of capital assets used in Archer-Daniels-Midland Company operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for ADM is equal to 4.7%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $18996 million for Archer-Daniels-Midland Company - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 559.981 million for Archer-Daniels-Midland Company is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Archer-Daniels-Midland Company at the current share price and the inputted number of shares is $23.0 billion.

RELATED COMPANIES Price Int.Val. Rating
BG Bunge Limited 57.55 13.22  str.sell
INGR Ingredion Inco 81.91 103.74  hold
MGPI MGP Ingredient 66.21 50.29  sell

CONTACT US      

About X-FIN       Privacy policy       Terms of use      

Copyright © X-FIN.com 2005-2019. All rigths reserved.