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

As of 19 September 2025, the valuation grade for Archer-Daniels-Midland Co. has moved from very expensive to expensive, indicating a shift in perspective regarding its market valuation. The company is currently considered overvalued, with a P/E ratio of 25, which is significantly higher than its peer Bunge Ltd., which has a P/E of 15.66. Additionally, Archer-Daniels-Midland Co. has an EV to EBITDA ratio of 13.47, compared to Bunge Ltd.'s 13.84, suggesting that while it is priced higher, it does not offer a proportionate value in terms of earnings before interest, taxes, depreciation, and amortization.
The peer comparison highlights that Archer-Daniels-Midland Co. is trading at a premium relative to its competitors, which raises concerns about its valuation. The company's return performance has been mixed; while it has a year-to-date return of 18.49%, it has underperformed the S&P 500 over the past year with a return of -2.44% compared to the index's 16.64%. This underperformance, coupled with its expensive valuation metrics, reinforces the conclusion that Archer-Daniels-Midland Co. is overvalued in the current market environment.