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

As of 19 September 2025, the valuation grade for Archer-Daniels-Midland Co. moved from very expensive to expensive, indicating a shift in perception regarding its valuation. The company appears to be overvalued based on its current metrics. Key ratios include a P/E ratio of 25, an EV to EBITDA of 13.47, and a Price to Book Value of 1.37, which are relatively high compared to its peers. For instance, Bunge Ltd. has a P/E of 15.66 and an EV to EBITDA of 13.84, suggesting that Archer-Daniels-Midland Co. is trading at a premium.
In terms of recent performance, the stock has underperformed against the S&P 500 over the past year, returning -1.28% compared to the index's 16.64%. This trend reinforces the notion that the stock may be overvalued, as it struggles to deliver returns in line with market benchmarks.