Demeter Relative Valuation Index

The Demeter Relative Valuation Index (DRVI) is a monthly index measuring the EV/EBITDA premium or discount of the listed global agriculture complex against country-matched broad-market benchmarks. A negative value indicates that ag is trading at a discount to its country-matched broad-market peers.

Listed ag companies are concentrated in particular geographies (US, Brazil, France, Singapore, India, etc.) and a global-average benchmark would mix in unrelated country-level valuation effects. Country-matching produces a cleaner read on whether agriculture as a sector is being valued favourably relative to the same country's broader market.

DRVI history begins in 1999, covering the dot-com period, the commodity supercycle and post-cycle, the post-GFC era, and the recent inflationary cycle.

The three are designed to be read together. DAA tracks equity prices; DRAG tracks the underlying top-line; DRVI tracks valuation relative to country-matched peers. Decomposing returns across the three lets users distinguish fundamental from valuation drivers.

Headline DRVI is published monthly on the 5th business day. Granular decomposition is available to Demeter subscribers via the Demeter platform. For licensing enquiries please contact the index team.