ADP Valuation

Automatic Data Processing Inc

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303.450

-0.39(-0.128%)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 27.78 is considered Undervalued compared with the five-year average of 28.09. The fair price of Automatic Data Processing Inc (ADP) is between 340.89 to 385.12 according to relative valuation methord. Compared to the current price of 303.45 USD , Automatic Data Processing Inc is Undervalued By 10.98%.

Relative Value

Fair Zone

340.89-385.12

Current Price：303.45

10.98%

Undervalued

27.78

Trailing

Forward

19.34

EV/EBITDA

Automatic Data Processing Inc. (ADP) has a current EV/EBITDA of 19.34. The 5-year average EV/EBITDA is 19.67. The thresholds are as follows: Strongly Undervalued below 16.16, Undervalued between 16.16 and 17.91, Fairly Valued between 21.42 and 17.91, Overvalued between 21.42 and 23.17, and Strongly Overvalued above 23.17. The current Forward EV/EBITDA of 19.34 falls within the Historic Trend Line -Fairly Valued range.

21.42

EV/EBIT

Automatic Data Processing Inc. (ADP) has a current EV/EBIT of 21.42. The 5-year average EV/EBIT is 21.83. The thresholds are as follows: Strongly Undervalued below 17.89, Undervalued between 17.89 and 19.86, Fairly Valued between 23.80 and 19.86, Overvalued between 23.80 and 25.77, and Strongly Overvalued above 25.77. The current Forward EV/EBIT of 21.42 falls within the Historic Trend Line -Fairly Valued range.

5.66

Automatic Data Processing Inc. (ADP) has a current PS of 5.66. The 5-year average PS is 5.29. The thresholds are as follows: Strongly Undervalued below 4.37, Undervalued between 4.37 and 4.83, Fairly Valued between 5.75 and 4.83, Overvalued between 5.75 and 6.21, and Strongly Overvalued above 6.21. The current Forward PS of 5.66 falls within the Historic Trend Line -Fairly Valued range.

22.35

P/OCF

Automatic Data Processing Inc. (ADP) has a current P/OCF of 22.35. The 5-year average P/OCF is 22.22. The thresholds are as follows: Strongly Undervalued below 16.98, Undervalued between 16.98 and 19.60, Fairly Valued between 24.85 and 19.60, Overvalued between 24.85 and 27.47, and Strongly Overvalued above 27.47. The current Forward P/OCF of 22.35 falls within the Historic Trend Line -Fairly Valued range.

23.38

P/FCF

Automatic Data Processing Inc. (ADP) has a current P/FCF of 23.38. The 5-year average P/FCF is 21.41. The thresholds are as follows: Strongly Undervalued below 15.16, Undervalued between 15.16 and 18.28, Fairly Valued between 24.53 and 18.28, Overvalued between 24.53 and 27.66, and Strongly Overvalued above 27.66. The current Forward P/FCF of 23.38 falls within the Historic Trend Line -Fairly Valued range.

Automatic Data Processing Inc (ADP) has a current Price-to-Book (P/B) ratio of 19.87. Compared to its 3-year average P/B ratio of 26.15 , the current P/B ratio is approximately -24.04% higher. Relative to its 5-year average P/B ratio of 22.43, the current P/B ratio is about -11.41% higher. Automatic Data Processing Inc (ADP) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.73%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.62% , the current FCF yield is about -100.00% lower.

19.87

P/B

Median3y

26.15

Median5y

22.43

3.88

FCF Yield

Median3y

3.73

Median5y

3.62

Competitors Valuation Multiple

The average P/S ratio for ADP's competitors is 15.06, providing a benchmark for relative valuation. Automatic Data Processing Inc Corp (ADP) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 7.51%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

ADP.O

Automatic Data Processing Inc

Palo Alto Networks Inc

CrowdStrike Holdings Inc

Performance Decomposition

Market capitalization of ADP increased by 9.98% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 4.77B to 5.13B.

The secondary factor is the Margin Expansion, contributed 2.13%to the performance.

Overall, the performance of ADP in the past 1 year is driven by Revenue Growth. Which is more sustainable.

7.51%

4.77B → 5.13B

Revenue Growth

2.13%

17.39 → 17.76

Margin Expansion

0.34%

30.29 → 30.39

P/E Change

9.98%