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ADP Valuation

Automatic Data Processing Inc
$
306.240
+2.01(0.661%)1D
  • Overview
  • Forecast
  • Valuation
  • Earnings

ADP Relative Valuation

ADP's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, ADP is overvalued; if below, it's undervalued.

Historical Valuation

Automatic Data Processing Inc (ADP) is now in the Undervalued zone, suggesting that its current forward PE ratio of 28.75 is considered Undervalued compared with the five-year average of 28.01. The fair price of Automatic Data Processing Inc (ADP) is between 336.43 to 380.71 according to relative valuation methord. Compared to the current price of 304.23 USD , Automatic Data Processing Inc is Undervalued By 9.57%.
Relative Value
Fair Zone
336.43-380.71
Current Price:304.23
9.57%
Undervalued
P/E
EV/EBITDA
EV/EBIT
P/S
P/OCF
P/FCF
1Y
3Y
5Y
Trailing
Forward
21.25
P/B
Median3y
26.55
Median5y
22.26
3.73
FCF Yield
Median3y
3.69
Median5y
3.64

Competitors Valuation Multiple

The average P/S ratio for ADP's competitors is 13.77, providing a benchmark for relative valuation. Automatic Data Processing Inc Corp (ADP) exhibits a P/S ratio of 5.79, which is -57.95% above the industry average. Given its robust revenue growth of 5.69%, this premium appears unsustainable.

FAQ

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Is Automatic Data Processing Inc (ADP) currently overvalued or undervalued?

Automatic Data Processing Inc (ADP) is now in the Undervalued zone, suggesting that its current forward PE ratio of 28.75 is considered Undervalued compared with the five-year average of 28.01. The fair price of Automatic Data Processing Inc (ADP) is between 336.43 to 380.71 according to relative valuation methord. Compared to the current price of 304.23 USD , Automatic Data Processing Inc is Undervalued By 9.57% .
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What is Automatic Data Processing Inc (ADP) fair value?

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How does ADP's valuation metrics compare to the industry average?

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What is the current P/B ratio for Automatic Data Processing Inc (ADP) as of Jul 25 2025?

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What is the current FCF Yield for Automatic Data Processing Inc (ADP) as of Jul 25 2025?

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What is the current Forward P/E ratio for Automatic Data Processing Inc (ADP) as of Jul 25 2025?

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What is the current Forward P/S ratio for Automatic Data Processing Inc (ADP) as of Jul 25 2025?