Automatic Data Processing Inc (ADP) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Automatic Data Processing Inc stock (ADP) is currently trading at $202.11. Automatic Data Processing Inc PE ratio is 19.41. Automatic Data Processing Inc PS ratio (Price-to-Sales) is 3.85. Analyst consensus price target for ADP is $271.40. WallStSmart rates ADP as Moderate Buy.
- ADP PE ratio analysis and historical PE chart
- ADP PS ratio (Price-to-Sales) history and trend
- ADP intrinsic value — DCF, Graham Number, EPV models
- ADP stock price prediction 2025 2026 2027 2028 2029 2030
- ADP fair value vs current price
- ADP insider transactions and insider buying
- Is ADP undervalued or overvalued?
- Automatic Data Processing Inc financial analysis — revenue, earnings, cash flow
- ADP Piotroski F-Score and Altman Z-Score
- ADP analyst price target and Smart Rating
Automatic Data Processing Inc
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ADP Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Automatic Data Processing Inc (ADP)
ADP appears undervalued based on the Graham Formula, trading 23% below its estimated fair value of $262.33.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Automatic Data Processing Inc (ADP) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, return on equity, operating margin. Concerns around price/book. Overall metrics suggest strong investment potential with favorable risk/reward.
Automatic Data Processing Inc (ADP) Key Strengths (5)
Every $100 of shareholder equity generates $74 in profit
Keeps $20 of every $100 in revenue as net profit
86.53% of shares held by major funds and institutions
Large-cap company with substantial market presence
Strong operational efficiency: $26 kept per $100 revenue
Supporting Valuation Data
Automatic Data Processing Inc (ADP) Areas to Watch (5)
Very expensive at 13.1x book value
Paying a premium for growth, expensive relative to earnings expansion
Modest revenue growth at 6.20%
Revenue is fairly priced at 3.85x sales
Solid earnings growth at 11.50%
Automatic Data Processing Inc (ADP) Detailed Analysis Report
Overall Assessment
This company scores 66/100 in our Smart Analysis, earning a B- grade. Out of 10 metrics analyzed, 5 register as strengths (avg 9.4/10) while 5 fall into concern territory (avg 4.4/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Return on Equity, Profit Margin, Institutional Own.. Profitability is solid with Return on Equity at 73.80%, Operating Margin at 26.30%, Profit Margin at 20.00%.
The Bear Case
The primary concerns are Price/Book, PEG Ratio, Revenue Growth. Some valuation metrics including PEG Ratio (2.67), Price/Sales (3.85), Price/Book (13.14) suggest expensive pricing. Growth concerns include Revenue Growth at 6.20%, EPS Growth at 11.50%, which may limit upside.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Price/Book improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 73.80% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at 6.20% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. Strengths and concerns are roughly balanced. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Return on Equity, Profit Margin) and negatives (Price/Book, PEG Ratio). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
ADP Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
ADP's Price-to-Sales ratio of 3.85x trades at a 22% premium to its historical average of 3.15x (82th percentile). The current valuation is 23% below its historical high of 4.98x set in Sep 2018, and 101% above its historical low of 1.92x in Feb 2009.
WallStSmart Analysis Synopsis
Data-driven financial summary for Automatic Data Processing Inc (ADP) · TECHNOLOGY › SOFTWARE - APPLICATION
The Big Picture
Automatic Data Processing Inc is a mature, profitable business with steady cash generation. Revenue reached 21.2B with 6% growth year-over-year. Profit margins of 20.0% are healthy, with room for further expansion as the business scales.
Key Findings
ROE of 73.8% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Generating 1.1B in free cash flow and 1.1B in operating cash flow. Earnings are translating into actual cash generation.
What to Watch Next
Dividend sustainability with a current yield of 3.1%. Watch payout ratio and free cash flow coverage.
Sector dynamics: monitor SOFTWARE - APPLICATION industry trends, competitive moves, and regulatory changes that could impact Automatic Data Processing Inc.
Bottom Line
Automatic Data Processing Inc is a well-established business delivering consistent profitability with 20.0% margins. The growth phase may be slowing, but strong cash generation and operational efficiency make it suitable for investors seeking reliability over excitement.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Automatic Data Processing Inc(ADP)
NASDAQ
TECHNOLOGY
SOFTWARE - APPLICATION
USA
Automatic Data Processing, Inc. (ADP) is an American provider of human resources management software and services.