Automatic Data Processing, Inc.ADP
Price$258.06Intrinsic value$291.2713% above price

Valuation

How Intrinsic Value compares with model outputs

Intrinsic Value $291.27median of 6 methods · middle span $223-$362based on filings through 30 Jun 2026
Market Price $258.06Price as of 30 Sep 2026
Margin of Safety +12.9%as of 30 Sep 2026

Valuation methods vs. Market Price

Company vs. peer median Members

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Assumptions

ParameterValue
Years 1–5: analyst growth pathFive-year total matches analyst consensus exactly. Year 1: 18.8% (near-term consensus, capped) · years 2–5: 7.2%/yr (balance of the path).9.4% per year
Years 6–10: glide to demonstrated growth
Per-year rates
Yr 67.7%Yr 78.1%Yr 88.6%Yr 99.0%Yr 109.4%
7.2% → 9.4%
Years 11–20: glide to long-run rate
Per-year rates
Yr 118.8%Yr 128.2%Yr 137.5%Yr 146.9%Yr 156.2%Yr 165.6%Yr 174.9%Yr 184.3%Yr 193.6%Yr 203.0%
9.4% → 3.0%
Beyond year 20: terminal growthPerpetual long-run rate3.0%
Historical EPS growth (multi-year median)median of 3 windows (5/6/7y)11.5%
Discount rate (cost of equity) 8.8%
Volatility vs market (adjusted beta)0.87

Valuation Detail Members

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Assumptions Sandbox Members

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Compare with peers

Search any company to compare valuation, profitability, returns, growth, and financial strength side by side.

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Best in rowHigher is betterLower is better—Data not available
TargetAutomatic Data Processing, Inc.ADPIndustrials
Valuation
P/E23.6×
P/S4.9×
P/B18.2×
EV / Revenue5.0×
EV / EBITDA—
Profitability
Gross margin46.0%
Operating margin26.3%
Net margin20.1%
FCF margin22.1%
Returns
ROE73.2%
ROA7.0%
ROIC65.2%
Growth
Revenue growth (YoY)6.7%
5-yr fwd EPS growth9.4%
Financial strength
Debt / Equity0.82×
Current ratio1.05×
Altman Z-Score2.4
Interest coverage—
Dividend yield2.0%

Best value in each row is highlighted. Figures are periodic snapshots from the same filings used across each dossier; a dash means the figure is not available.

AI-assisted, source-linked narrative; figures from company filings (SEC EDGAR) and market data. Dates shown per section. Not investment advice. Terms of Use.