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 23.22 is considered Undervalued compared with the five-year average of 28.01. The fair price of Automatic Data Processing Inc (ADP) is between 418.61 to 463.85 according to relative valuation methord. Compared to the current price of 259.40 USD , Automatic Data Processing Inc is Undervalued By 38.03%.
Relative Value
Fair Zone
418.61-463.85
Current Price：259.40
38.03%
Undervalued
23.22
PE
1Y
3Y
5Y
Trailing
Forward
16.49
EV/EBITDA
Automatic Data Processing Inc. (ADP) has a current EV/EBITDA of 16.49. The 5-year average EV/EBITDA is 19.64. The thresholds are as follows: Strongly Undervalued below 16.17, Undervalued between 16.17 and 17.91, Fairly Valued between 21.38 and 17.91, Overvalued between 21.38 and 23.12, and Strongly Overvalued above 23.12. The current Forward EV/EBITDA of 16.49 falls within the Undervalued range.
18.13
EV/EBIT
Automatic Data Processing Inc. (ADP) has a current EV/EBIT of 18.13. The 5-year average EV/EBIT is 21.78. The thresholds are as follows: Strongly Undervalued below 17.83, Undervalued between 17.83 and 19.80, Fairly Valued between 23.75 and 19.80, Overvalued between 23.75 and 25.72, and Strongly Overvalued above 25.72. The current Forward EV/EBIT of 18.13 falls within the Undervalued range.
4.77
PS
Automatic Data Processing Inc. (ADP) has a current PS of 4.77. The 5-year average PS is 5.33. The thresholds are as follows: Strongly Undervalued below 4.52, Undervalued between 4.52 and 4.93, Fairly Valued between 5.74 and 4.93, Overvalued between 5.74 and 6.14, and Strongly Overvalued above 6.14. The current Forward PS of 4.77 falls within the Undervalued range.
18.93
P/OCF
Automatic Data Processing Inc. (ADP) has a current P/OCF of 18.93. The 5-year average P/OCF is 22.25. The thresholds are as follows: Strongly Undervalued below 17.13, Undervalued between 17.13 and 19.69, Fairly Valued between 24.81 and 19.69, Overvalued between 24.81 and 27.37, and Strongly Overvalued above 27.37. The current Forward P/OCF of 18.93 falls within the Undervalued range.
21.01
P/FCF
Automatic Data Processing Inc. (ADP) has a current P/FCF of 21.01. The 5-year average P/FCF is 21.40. The thresholds are as follows: Strongly Undervalued below 15.36, Undervalued between 15.36 and 18.38, Fairly Valued between 24.43 and 18.38, Overvalued between 24.43 and 27.45, and Strongly Overvalued above 27.45. The current Forward P/FCF of 21.01 falls within the Historic Trend Line -Fairly Valued range.
Automatic Data Processing Inc (ADP) has a current Price-to-Book (P/B) ratio of 16.48. Compared to its 3-year average P/B ratio of 24.45 , the current P/B ratio is approximately -32.62% higher. Relative to its 5-year average P/B ratio of 22.79, the current P/B ratio is about -27.68% 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 3.80%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.60% , the current FCF yield is about -100.00% lower.
16.48
P/B
Median3y
24.45
Median5y
22.79
4.37
FCF Yield
Median3y
3.80
Median5y
3.60
Competitors Valuation Multiple
The average P/S ratio for ADP's competitors is , providing a benchmark for relative valuation. Automatic Data Processing Inc Corp (ADP) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 7.09%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ADP decreased by 11.39% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 4.83B to 5.18B.
The secondary factor is the Margin Expansion, contributed -1.11%to the performance.
Overall, the performance of ADP in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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