Adams Diversified Equity Fund, Inc.

NYSE:ADX Stock Report

Market Cap: US$2.5b

Adams Diversified Equity Fund Valuation

Is ADX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ADX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ADX ($22.3) is trading below our estimate of fair value ($59.55)

Significantly Below Fair Value: ADX is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ADX?

Key metric: As ADX is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ADX. This is calculated by dividing ADX's market cap by their current earnings.
What is ADX's PE Ratio?
PE Ratio4x
EarningsUS$625.50m
Market CapUS$2.52b

Price to Earnings Ratio vs Peers

How does ADX's PE Ratio compare to its peers?

The above table shows the PE ratio for ADX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.2x
DBRG DigitalBridge Group
11.6x-23.4%US$2.3b
GCMG GCM Grosvenor
38.9x26.9%US$2.3b
FHI Federated Hermes
12.7x4.9%US$3.2b
VRTS Virtus Investment Partners
13.8xn/aUS$1.6b
ADX Adams Diversified Equity Fund
4xn/aUS$2.5b

Price-To-Earnings vs Peers: ADX is good value based on its Price-To-Earnings Ratio (4x) compared to the peer average (19.2x).

Price to Earnings Ratio vs Industry

How does ADX's PE Ratio compare vs other companies in the US Capital Markets Industry?

22 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.23.7x13.8%
ADX Adams Diversified Equity Fund
 4xn/aUS$2.52b
CET Central Securities
4.5xn/aUS$1.32b
GAM General American Investors Company
4.1xn/aUS$1.16b
ADX 4.0xIndustry Avg. 23.7xNo. of Companies76PE020406080100+
22 CompaniesEstimated GrowthMarket Cap
Industry Avg.23.7x13.8%
ADX Adams Diversified Equity Fund
 4xn/aUS$2.52b
No more companies

Price-To-Earnings vs Industry: ADX is good value based on its Price-To-Earnings Ratio (4x) compared to the US Capital Markets industry average (23.6x).

Price to Earnings Ratio vs Fair Ratio

What is ADX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ADX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ADX's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

Discover undervalued companies

Federal Home Loan Mortgage

US$10.4b

Operates in the secondary mortgage market in the United States.

FMCC

US$2.92

7D

0%

1Y

358.8%

ORIX

JP¥3.8t

Provides diversified financial services in Japan, the United States, Asia, Europe, Australasia, and the Middle East.

IX

JP¥106.82

7D

-0.9%

1Y

17.5%

FinVolution Group

US$1.6b

Operates in the online consumer finance industry.

FINV

US$6.30

7D

6.1%

1Y

38.8%