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Automatic Data Processing Inc (ADP) fair value: what the stock is really worth

As of Nov 5, 2026: fair value (intrinsic value) of Automatic Data Processing Inc stock $150, price $307, that is 51.0% below the price, quality 63 out of 100. Rating: strongly overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.

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Technology US

AD Automatic Data Processing Inc logo Broad data Nov 5, 2026

Automatic Data Processing Inc

ADP · US
Solid, but very expensive

Our calculation puts a fair price 51% below what the stock costs today.

Quality 63/100
Healthy Growth (revenue 5y +7.9 %/yr in USD)
Highly profitable · 20.1% net margin (TTM)
Generates free cash flow
2.2% dividend yield · Sustainable
Wide moat 86/100
Positive coverage
Broad data
72% return on equity.
Moderate debt
Mixed vs. peers (6/15)
Insiders sold $20.0M (6M)
Fair value $150.40 · Strongly overvalued (−51.0%)

Risks from the AI analysis

🚩Generative AI startups could commoditise payroll processing🚩Rivals like Rippling, Deel and Workday could erode market share🚩Privacy and AI regulations could raise compliance costs

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

Price vs Fair Value

$314.38 $176.24 Fair Value $150.40 Aug 2021 Nov 2026

White line = price, green steps = our fair value per fiscal year. As of Nov 5, 2026.

How to read this chart

60‑month range $176.24 – $314.38 · fair‑value band $112.14 – $208.90 · the $307.14 price screens above the $150.40 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 5, 2026.

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Company profile

Automatic Data Processing, Inc. provides cloud-based human capital management (HCM) solutions worldwide.

Show moreShow less

It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.

This segment's offerings include RUN Powered by ADP, a software platform for small business payroll, HR, and compliance; ADP Workforce Now, a HCM solution used across mid-sized and large businesses to manage employees; and ADP Lyric HCM, a solution for HR management, payroll, workforce management, talent, and data analytics.

The PEO Services segment provides HR and employment administration outsourcing solutions under ADP TotalSource name to businesses through a co-employment model.

The segment also provides guidance, user-friendly technology, comprehensive employee benefits, and a risk management, safety, and workers' compensation program. The company was founded in 1949 and is headquartered in Roseland, New Jersey.

Stock analysis

Automatic Data Processing Inc (ADP) currently trades at $307.14, while our model-based Fair Value estimate is $150.40, 51% below the price, so the stock looks overvalued today.

Show more

Valuation

Bull case: the Growth Earnings group reads highest at a median of $206.80 per share, and 0 of the 26 models we run sit above the $307.14 price.

Bear case: the Economic Profit group reads lowest at $61.32, and 26 of the 26 models stay below the price. Data coverage for this calculation is high.

Scenario range: $112.14 (bear) to $208.90 (bull), the price of $307.14 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.

Quality & growth

The Quality Score stands at 63/100 (solid quality), in the Technology sector.

Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.

Automatic Data Processing Inc reported revenue of $21.9B in FY2026 versus $16.5B in FY2022, a compound +7.4%/yr. Reported net income was $4.4B in FY2026, compounding +10.6%/yr from FY2022.

Key figures

Market cap $123B Large · P/E ratio 28.1 · P/S ratio 5.59 · EPS (TTM) $10.94 · Dividend yield 2.2% · Net margin 20.1% · Return on equity 72.2% · Return on assets (EBIT) 8.1%.

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 86 out of 100 (medium confidence).

What moves the price

The share trades at its 52-week high and 65% above its 52-week low, currently above its 200-day average.

For context, the median of 10 Technology peers we cover trades at 10% fair-value upside, at −51%, ADP screens richer than that median.

Fair Value models

Bear $112.14 Fair Value $150.40 Bull $208.90
Price $307.14 · Downside -51.0%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 4 months old). Earnings retained since then ($1.53 per share) are deliberately not added. Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds. Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Best data coverage
FCF DCF $159.39 $250.37 $390.76 79
Growth DCF $162.38 $243.16 $360.32 78
Owner Earnings $114.69 $180.45 $281.92 75
All 26 models by family
DCF Models
FCF DCF $159.39 $250.37 $390.76 79
Owner Earnings $114.69 $180.45 $281.92 75
5Y Revenue Exit $97.36 $141.84 $196.69 73
5Y EBITDA Exit $120.68 $185.42 $259.60 75
5Y P/E Exit $156.05 $251.51 $351.13 70
10Y Revenue Exit $115.98 $161.94 $220.58 67
10Y EBITDA Exit $133.08 $192.37 $268.85 68
10Y P/E Exit $155.76 $238.53 $339.09 64
Earnings-Based
Graham-Dodd $75.74 $234.37 $311.52 65
Lynch FV $50.76 $72.51 $94.26 61
PEG = 1.0 $50.76 $72.51 $94.26 57
EPV $65.40 $76.78 $86.78 74
Dividend Discount
Gordon GGM $61.62 $129.76 $208.90 66
DDM Multi-Stage $61.62 $102.16 $135.95 66
Multiples
P/E Multiple $175.43 $233.90 $292.38 63
P/S Multiple $83.08 $110.78 $138.47 58
P/B Multiple $9.31 $12.42 $15.52 55
EV/EBIT $128.60 $172.35 $216.09 66
EV/EBITDA $112.14 $150.40 $188.65 67
EV/Revenue $67.16 $97.07 $126.98 53
Asset-Based
NCAV (Graham) $1.38 $1.85 $2.76 54
Growth DCF
Growth DCF $162.38 $243.16 $360.32 78
Rev-Margin DCF $97.36 $143.60 $197.37 73
Economic Profit
Residual Income $48.73 $61.32 $114.92 72
ROIC Compounder $69.09 $85.67 $103.51 72
Growth Earnings
Growth-Adj P/E $144.76 $206.80 $268.84 67

Open the full fair value analysis →

Quality Score breakdown

Overall quality 63/100

It rates the business: profits, how they develop, real cash, balance sheet, investing and share count.

Profitability 56
How much profit the company makes from its sales and capital
Quality Growth 35
Are margins and returns getting better?
Cashflow 83
Do the profits arrive as real cash?
Financial strength 25
Debt, balance sheet and risk of trouble
Investment 55
Does it invest with discipline instead of growing at any price?
Low Volatility 73
How calm the share price moves, does not count
Price momentum 67
Price momentum of the last 3 to 12 months, does not count
Near the 52-week high 79
Distance to the 52-week high, does not count
New shares 98
Buys back shares or issues new ones?

Open the full quality analysis →

Insider trades

In the last 6 months, 10 officers or directors sold shares worth $20.0M and none bought.

  • SaleJonathan S LehbergerCorp. VP770 shares at $300.35$231,270Nov 4, 202610b5-1 plan
  • SaleCarlos A RodriguezDirector2× since Nov 2, 2026: 13,936 shares, avg. $300.64$4.2MNov 4, 202610b5-1 plan
  • SaleMichael A BonartiCorporate Vice President7,487 shares at $300.00$2.2MNov 2, 202610b5-1 plan
  • SaleVirginia MagliuloExecutive VP2,927 shares at $293.70$859,660Oct 30, 202610b5-1 plan
  • SaleJoseph DeSilvaExecutive VP2× since Sep 2, 2026: 7,143 shares, avg. $282.99$2.0MSep 3, 202610b5-1 plan
  • SaleMaria BlackPresident & CEO2× since Jan 5, 2026: 30,525 shares, avg. $280.35$8.6MSep 2, 202610b5-1 plan
  • SaleChristopher D'AmbrosioCorp. VP5× since Jan 13, 2026: 4,044 shares, avg. $249.02$1.0MSep 2, 202610b5-1 plan
  • SaleDavid FoskettCorp. VP2× since Feb 5, 2026: 1,795 shares, avg. $276.18$495,749Sep 2, 202610b5-1 plan
  • SaleBrian L. MichaudExecutive VP3× since Feb 6, 2026: 1,968 shares, avg. $227.45$447,630Aug 21, 202610b5-1 plan
  • SaleDavid KwonCorp VP4× since Jan 6, 2026: 4,918 shares, avg. $266.79$1.3MAug 20, 202610b5-1 plan

Plus 1 more entries from the last 12 months.

Plus 34 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.

Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.

Source: SEC Form 4, as of Nov 5, 2026. All filings at the SEC ↗

Revenue & earnings trend

Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card. 86/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+6.7%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+6.8%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+7.9%
Start year 2021 (pandemic). Over 10 years: +6.5% a year
Revenue growth 12 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+5.0%
What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+14.9%
Earnings growth per share plus dividend.
Earnings per share, growth per year+12.7%
Dividend (yield on the price)2.2%
Per share before 2014divided by the spin-off factor 1.139
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.12.7% vs 13.0%, steady
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.22% → 19%
Pace: the 5-year rate starts in 2021 (pandemic)

Growth Forecast

A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+10.9%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+5.3%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +8.3% a year for the price and +2.9% for the forecasts.
Forecast 2027 (sales)+5.8%
Forecast 2028 (sales)+5.9%
Projected 2029 (sales)+5.4%
Projected 2030 (sales)+5.0%
Projected 2031 (sales)+4.5%

ADP screens overvalued: fair value 51% below the price. Compare with SAP SE →

Recent news

News mood ⓘNews mood, the average tone of recent news (99 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation. Positive
Recent news coverage is more positive than average.
Note from the team Oct 29, 2026
AI conclusion: ADP's core strength is its sticky payroll platform that delivers scale and switching costs for pricing power, while its main weakness is the continuous funding needed for automation amid jobs uncertainty.
Main risk: LLM-powered startups such as those behind Rippling or Deel could commoditise core payroll and HR administration services, squeezing ADP's pricing power and margins on recurring software revenue.
Bull case: ADP could leverage its unmatched payroll dataset and compliance infrastructure to embed agentic AI more securely than rivals, turning regulatory fragmentation into a competitive advantage and expanding recurring revenue through Lyric HCM in Europe.
Bear case: If AI-enabled rivals commoditise payroll services and regulatory burdens mount, ADP could see pricing pressure on its core US offerings, slower adoption of new platforms and reduced ability to offset softer domestic employment trends with European growth.
ADP delivered another solid quarter with revenue up 6 percent and raised its full-year growth targets on the back of AI tools and stronger client-funds interest income. Its sticky payroll platform keeps adding clients and cutting service contacts, yet the company must keep funding automation while the broader jobs picture remains uncertain. Will the efficiency gains from AI widen margins faster than new business slows, or will the interest-income tailwind prove more durable?
Join the discussion →

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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Software - Application · 630 stocks

Beats the industry median on 6/15 measures
A mixed picture versus its industry peers.
Valuation
Quality Score 63 · Above median
Fair Value upside −51.0% · Below median
Profitability
Return on equity (12 months) 72.2% · Top 25%
Return on assets 7.0% · Above median
Net margin (12 months) 20.1% · Top 25%
Operating margin (12 months) 23.5% · Top 25%
Growth and dividend
Revenue growth (quarter YoY) 6.8% · Below median
Dividend yield (12 months) 2.2% · Above median
Balance sheet
Debt / equity 0.82× · Highest 25%

Valuation Multiplesvs Software - Application median · lower = cheaper

P/E (12 months) 28.1× · Pricier than median
P/B 20.34× · Priciest 25%
P/S (12 months) 5.59× · Priciest 25%
Price / free cash flow (fiscal year) 23.4× · Pricier than median
EV/EBITDA 19.3× · Pricier than median
PEG 2.45× · Priciest 25%

Strength profile in five axes (Snowflake)

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE (fair-value potential)0 · sector 29
FUTURE (revenue growth)34 · sector 41
PAST (return on equity)100 · sector 20
HEALTH (low debt)59 · sector 98
DIVIDEND (yield)43 · sector 29

VALUE 0: the price sits above our fair-value range.

Context: sector, industry, market

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Software - Application stocks, each showing price versus our Fair Value estimate.

Stock Price Fair Value vs Fair Value Compare
Adobe Inc ADBE $246.44 $463.72 +88% vs ADP
Salesforce, Inc CRM $222.41 $342.73 +54% vs ADP
Uber Technologies, Inc UBER $68.78 $101.25 +47% vs ADP
Intuit Inc INTU $354.84 $459.14 +29% vs ADP
ServiceNow, Inc NOW $102.36 $112.60 +10% vs ADP
SAP SE SAP €210.75 €173.59 −18% vs ADP
Cadence Design Systems, Inc CDNS $311.43 $225.48 −28% vs ADP
Shopify Inc SHOP $143.75 $64.96 −55% vs ADP
Snowflake Inc SNOW $269.54 $73.81 −73% vs ADP
Datadog, Inc DDOG $174.60 $32.52 −81% vs ADP

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Automatic Data Processing Inc: fair value per Fair Value Calculator

Cite: Fair Value Calculator (2026). "Automatic Data Processing Inc Fair Value". https://www.fairvalue-calculator.com/stock/ADP

Frequently asked questions

Is Automatic Data Processing Inc (ADP) overvalued or undervalued?
As of Nov 5, 2026, our model estimates a fair value of $150.40 versus a price of $307.14, about 51% lower (overvalued).
What is the fair value of ADP?
Our model-based fair value for Automatic Data Processing Inc is $150.40 (as of Nov 5, 2026), built from audited fundamentals. The current price: $307.14.
What is the quality score of ADP?
Automatic Data Processing Inc has a Quality Score of 63/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Automatic Data Processing Inc (ADP)?
Our model-based price target is the fair value of $150.40 (as of Nov 5, 2026) from 26 valuation models. Cautious scenario $112.14, optimistic scenario $208.90. It is a calculation from audited fundamentals, not an analyst target.
What is the Automatic Data Processing Inc stock forecast for 2026?
Our models put fair value at $150.40, about 51% lower versus a price of $307.14 (overvalued). Cautious scenario $112.14, optimistic scenario $208.90. The calculation is refreshed regularly with new filings.
What is the revenue of Automatic Data Processing Inc (ADP)?
Automatic Data Processing Inc reported trailing-twelve-month revenue of about $21.9B (latest available figure, as of Nov 5, 2026).
Does Automatic Data Processing Inc pay a dividend?
Automatic Data Processing Inc currently shows a dividend yield of 2.16% relative to its recent price (as of Nov 5, 2026).
What growth is priced into Automatic Data Processing Inc (ADP)?
For today's price to be fair in a discounted-cash-flow model, Automatic Data Processing Inc would have to grow free cash flow by +10.9 % per year for five years (discount rate 8.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +7.9 % per year. As of Nov 5, 2026.
What discount rate (WACC) does the fair value of ADP use?
Our models discount Automatic Data Processing Inc at 8.9 %: a base by market capitalisation (large), damped by beta 0.84, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Automatic Data Processing Inc that is +10.9 % per year a year over ten years, using the same discount rate (8.9 %) and the same formula as our fair value.
How much growth has Automatic Data Processing Inc (ADP) delivered so far?
Over the past 5 years revenue at Automatic Data Processing Inc grew +7.9 % a year. The price currently implies +10.9 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Automatic Data Processing Inc (ADP) growing?
The median revenue growth in the sector is +7.9 % a year. That is the yardstick for the growth priced into Automatic Data Processing Inc (+10.9 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Automatic Data Processing Inc (ADP)?
The free-cash-flow yield on the price is 4.28 %: that much free cash flow Automatic Data Processing Inc produces per unit of market value. When it exceeds the discount rate of our models (8.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Automatic Data Processing Inc (ADP)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Automatic Data Processing Inc it is $150.40 per share (as of Nov 5, 2026), against a price of $307.14. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Automatic Data Processing Inc stock overvalued or undervalued in 2026?
As of Nov 5, 2026, ADP trades above its calculated fair value: price $307.14, fair value $150.40, a gap of about −51% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of ADP?
No. The price is what the market pays today ($307.14); the fair value is what the company's own numbers justify ($150.40). For Automatic Data Processing Inc the two are $156.74 per share apart. That gap is exactly why we show both numbers side by side.
How much is Automatic Data Processing Inc worth?
The market values Automatic Data Processing Inc at about $123B (market capitalisation, as of Nov 5, 2026). Per share that is $307.14; our models calculate a fair value of $150.40 per share.
What do the bullish and bearish scenarios say about ADP?
Our models span a range for Automatic Data Processing Inc: cautious scenario $112.14, base $150.40, optimistic $208.90 per share (as of Nov 5, 2026, price $307.14). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of ADP?
Automatic Data Processing Inc trades at a price-to-earnings ratio of 28.1 (as of Nov 5, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $150.40 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2017 to 2026), reported earnings, FY2017, FY2026 ex one-offs: 29.5. Other multiples: PEG 2.4, P/B 20.3, P/S 5.6, EV/EBITDA 19.3.
What is the PEG ratio of ADP?
The PEG ratio of Automatic Data Processing Inc is 2.45 (P/E divided by earnings growth, as of Nov 5, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Automatic Data Processing Inc (ADP)?
Balance-sheet figures for Automatic Data Processing Inc (as of Nov 5, 2026): return on equity 72.2%, debt of 0.82 per unit of equity. They feed the Quality Score of 63/100, which measures business quality independently of the share price.
How far is ADP from its 52-week high?
Automatic Data Processing Inc trades at $307.14, at its 52-week high of $307.94 and 65% above the low of $186.18 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of $150.40 is for.
Which stocks are comparable to Automatic Data Processing Inc?
From the same area (Technology) we also value SAP SE, Salesforce, Inc, Shopify Inc, ServiceNow, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Automatic Data Processing Inc stock attractive at the current price?
The data as of Nov 5, 2026: price $307.14, calculated fair value $150.40 (−51%), Quality Score 63/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of ADP calculated?
We run Automatic Data Processing Inc through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $150.40, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 12.4% above its aggregate fair value. Automatic Data Processing Inc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Automatic Data Processing Inc (ADP)?
The closing price on Nov 5, 2026 was $307.14. Our model-based fair value is $150.40, about 51% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Automatic Data Processing Inc right now?
The price sits above even our optimistic bull case ($208.90). The favourable scenario is already priced in. Solid but not exceptional quality (63/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range ($112.14 to $208.90) leaves room in how you read the outcome.
Where does the earnings growth of Automatic Data Processing Inc (ADP) come from?
Earnings per share at Automatic Data Processing Inc grew +12.9 % a year from 2015 to 2026. Broken into its drivers: revenue per share +8.0 %, EBIT margin +2.3 %, tax rate +1.4 %, residual (interest, one-offs) +0.7 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.

Key figures of Automatic Data Processing Inc

How large is the market capitalisation of Automatic Data Processing Inc (ADP)?
The market capitalisation of Automatic Data Processing Inc is $123B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Automatic Data Processing Inc (ADP)?
The price-to-sales ratio of Automatic Data Processing Inc is 5.59 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Automatic Data Processing Inc (ADP)?
Earnings per share at Automatic Data Processing Inc are $10.94 (price ÷ EPS = P/E 28.1). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Automatic Data Processing Inc (ADP)?
The dividend yield of Automatic Data Processing Inc is 2.2% (payout 60.7%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Automatic Data Processing Inc (ADP)?
The net margin of Automatic Data Processing Inc is 20.1% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Automatic Data Processing Inc (ADP)?
The return on equity (ROE) of Automatic Data Processing Inc is 72.2% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Automatic Data Processing Inc (ADP)?
On an EBIT basis the return on assets of Automatic Data Processing Inc is 8.1% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Automatic Data Processing Inc (ADP)?
The operating margin of Automatic Data Processing Inc is 23.5% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Automatic Data Processing Inc (ADP)?
Revenue at Automatic Data Processing Inc is growing +6.8% versus a year earlier (3y avg +6.8%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Automatic Data Processing Inc (ADP)?
Earnings per share at Automatic Data Processing Inc are growing +9.8% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Automatic Data Processing Inc (ADP) carry?
The net debt of Automatic Data Processing Inc is $1.0B (fiscal year 2026, ≈ 0.2 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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