P/E Ratio
Higher than 83% of Consumer Defensive sector peers
Updated 1735h ago
Sector Performance
83th percentileADM
31.3x
Sector Median
14.0x
Sector Avg
19.5x
Deep Analysis
A P/E ratio of 31.3x means investors are paying $31.30 for every $1 of the company's past earnings, reflecting the premium they assign to its future profit potential.
This is well above the Consumer Defensive sector median of 20.5x, placing ADM in the 100th percentile among peers—far more expensive than nearly every comparable firm. The ratio has been stable, with no change year-over-year (+0.0%) or quarter-over-quarter (+0.0%), indicating valuation has not shifted despite any business developments. A high, stagnant P/E suggests the market has locked in an elevated expectation for earnings, leaving little room for upside if results fall short, which increases downside risk. This combination of an elevated valuation without any improving trend contradicts a bullish stance and directly supports the overall CAUTIOUS verdict by signaling limited safety margin.
Frequently Asked Questions
What does the P/E Ratio tell investors about ADM?
Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.
How is the P/E Ratio calculated?
P/E Ratio is calculated as: Price / EPS.
How does ADM's P/E Ratio compare to its sector?
ADM's P/E Ratio of 31.3x compares to a Consumer Defensive sector median of 14.0x, placing it in the 83th percentile.
Who are ADM's closest peers by P/E Ratio?
The closest Consumer Defensive peers by P/E Ratio include: MO (14.0x), BTI (13.5x), BUD (13.1x), PM (22.6x), ABEV (3.2x).
The Formula
Price / EPS
Why It Matters
Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.
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31.3x
Sector Median
14.0x
Sector Avg
19.5x
How ADM's P/E Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.