ADMCAUTIOUS

ADM EV/EBITDA Analysis

11.6x

Higher than 50% of Consumer Defensive sector peers

Updated 2141h ago·SEC filings & market data

Key Takeaway

The current EV/EBITDA of 11.6x means that for every dollar of earnings before interest, taxes, depreciation, and amortization (EBITDA) that Archer-Daniels-Midland generates, investors are paying $11.60 for the entire company (including debt).

Sector Performance

50th percentile

ADM

11.6x

Sector Median

11.6x

Sector Avg

13.3x

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Deep Analysis

This valuation sits exactly at the sector median of 11.6x, placing the stock at the 50th percentile among its Consumer Defensive peers. The metric has been perfectly stable over the past eight quarters, with a year-over-year change of +0.0% and a quarter-over-quarter change of +0.0%. A combination of an average valuation and no movement suggests neither cheapness nor premium pricing, offering limited immediate opportunity but also no clear risk from valuation distortion. This steadiness aligns with the overall CAUTIOUS verdict, as the lack of valuation catalysts supports a wait-and-see stance rather than a strong buy or sell argument. The metric neither contradicts nor reinforces caution beyond confirming that the stock is priced in line with its industry.

Frequently Asked Questions

What does the EV/EBITDA tell investors about ADM?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

How does ADM's EV/EBITDA compare to its sector?

ADM's EV/EBITDA of 11.6x compares to a Consumer Defensive sector median of 11.6x, placing it in the 50th percentile.

Who are ADM's closest peers by EV/EBITDA?

The closest Consumer Defensive peers by EV/EBITDA include: MO (8.9x), ABEV (6.8x), PM (17.9x), WMT (21.0x).

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Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.