ADM PEG Ratio Analysis

The PEG ratio compares a stock’s price-to-earnings (P/E) multiple to its earnings growth rate, so a PEG of 31.27x means investors are paying over 31 times the company’s expected earnings growth — a very expensive valuation relative to growth.

By comparison, the sector median for Consumer Defensive companies is just 1.63x, and ADM ranks in the 100th percentile among peers, meaning it is the most expensive in the group by this measure. The metric has been increasing over the last eight quarters, with a year-over-year change of +31170.0% (jumping from 0.10x to 31.27x) and no change quarter-over-quarter (+0.0%). This combination of an extremely high PEG ratio and a steep upward trend signals that the stock’s price has far outpaced any improvement in its earnings growth expectations, creating elevated valuation risk. Such a level and trend imply limited upside potential and increased downside vulnerability, especially if growth disappoints. The PEG ratio directly supports the overall CAUTIOUS verdict, as the extreme overvaluation relative to peers and the recent surge in the multiple point to a risk-heavy setup rather than an opportunity.

Frequently Asked Questions

Closest Sector Peers