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Disclaimer: The blog posts and comments on this blog and posts on social networks are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is". The blog is stocks analysis and valuation, Bitcoin, Cryptocurrencies, Artificial Intelligence, AI, deep-learning focused. Independent, unbiased AI insights. Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blog posts on this blog and posts on social networks. Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blog post and posts on social networks! The blog is property of Wolfteam Ltd. www.wolfteamedge.com Respectfully yours, Petar Posledovich

Tuesday, July 18, 2023

Archer-Daniels-Midland Company Valuation. The Grains, Wheat Deal

 


Archer-Daniels-Midland Company's intrinsic worth is 170 billion USD. 

Compared to Archer-Daniels-Midland Company's current market capitalization of 44 billion USD.

It is astounding how food companies and commodities companies' stocks, in general, trade on such low multiples compared to technology companies' stocks.

It seems to be predominantly related to the expected revenue growth levels. 

Archer-Daniels-Midland Company's revenue, however, has been growing very fast in the last 5 years. And now the Russian Ukrainian conflict is creating huge uncertainty on possible disruptions in global wheat, corn supply, which can disproportionately benefit Archer-Daniels-Midland Company, which is one of America's largest food companies.

Based on the undervaluation judged by the low multiples Archer-Daniels-Midland Company is trading at and possible stoppage of the Russia lead accord to export wheat, corn via the Black Sea, Archer-Daniels-Midland Company's worth is 170 billion USD, according to Wolfteam Ltd.'s corporate estimates.

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