Is Archer-Daniels-Midland Co. overvalued or undervalued?

As of 10 September 2025, the valuation grade for Archer-Daniels-Midland Co. has moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company is overvalued, as evidenced by its P/E ratio of 25, which is substantially higher than its peer Bunge Ltd., which has a P/E of 15.66. Additionally, Archer-Daniels-Midland's EV to EBITDA ratio stands at 13.47, while Bunge Ltd. shows a more favorable ratio of 13.84, further highlighting the valuation disparity.
In comparison to its industry peers, Archer-Daniels-Midland Co. exhibits a Price to Book Value of 1.37 and an EV to Capital Employed of 1.28, both of which suggest that the company is trading at a premium relative to its assets and operational efficiency. Notably, the company's recent stock performance has been mixed, with a year-to-date return of 20.41%, outpacing the S&P 500's 12.22% return, but significantly lagging over longer periods, such as a 3-year return of -28.24% compared to the S&P 500's 70.41%.