ADP Stock Analysis
NMS · Technology · Software - Application
$261.24
-2.43 (-0.92%)
ADP Interactive Price Chart & Trading Signals
ADP Stock Snapshot — Valuation, Risk & Technical Signals
ADP Key Fundamentals, Analyst Targets & Company Profile
Key Financial Ratios
Market Cap
$103.52B
P/E Ratio
23.88
Forward P/E
19.50
PEG Ratio
2.45
P/B Ratio
17.23
EPS
$10.94
Dividend Yield
2.58%
52W Range
$188.16 – $294.35
Beta
0.83
Volume
0.1M
ROE
72.2%
Profit Margin
20.1%
Revenue Growth
6.8%
Gross Margin
48.7%
EV/EBITDA
16.54
Analyst Target
$287.60
The trailing price-to-earnings ratio stands at 23.9x. Forward P/E of 19.5x implies earnings expansion expected. Price-to-book is 17.23x. EV/EBITDA sits at 16.54x. Market capitalization is $103.52B. Revenue is growing at 6.8% on a trailing basis. Earnings are expanding at 9.8%. Profit margins are 20.1%. Return on equity is 72.2%. Beta of 0.83 indicates market-average volatility.
Analyst Consensus
Recommendation
Hold
Low Target
$225.00
Mean Target
$287.60
High Target
$322.00
Based on 15 analysts
About ADP
Automatic Data Processing, Inc. provides cloud-based human capital management (HCM) solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions. This segment's offerings include RUN Powered by ADP, a software platform for small business payroll, HR, and compliance; ADP Workforce Now, a HCM solution used across mid-sized and large businesses to manage employees; and ADP Lyric HCM, a solution for HR management, payroll, workforce management, talent, and data analytics. Its PEO Services segment provides HR outsourcing solutions under ADP TotalSource name to businesses through a co-employment model. This segment also provides guidance, user-friendly technology, comprehensive employee benefits, and a risk management, safety, and workers' compensation program. The company was founded in 1949 and is headquartered in Roseland, New Jersey.
ADP Deep Dive Analysis
Bottom Line
Verdict
Fairly ValuedBest for
Quality-focused portfoliosWatch out for
None flaggedNon-zero inputs
4/5Counts non-zero values for price, P/E, beta, macro risk, and revenue growth; zero may mean unavailable or be a genuine zero.
Automatic Data Processing, Inc. (ADP) trades near our multi-model fair value estimate of $238.86 by approximately 8.6%. Trailing P/E: 23.9x. Profitability signals include profit margin of 20.1% and return on equity of 72.2%. Recent growth metrics show revenue growth of 6.8% and earnings growth of 9.8%. Risk profile: beta of 0.83. Consensus: hold.
Valuation, Growth & Risk
Valuation
Fairly Valued
P/E 23.9x
Price is close to fair value estimate.
Growth
Expanding
Rev 6.8%
Revenue is outpacing the market.
Valuation Snapshot
Automatic Data Processing, Inc. (ADP) trades near our multi-model fair value estimate of $238.86 by approximately 8.6%. The trailing price-to-earnings ratio stands at 23.9x. Forward P/E of 19.5x suggests earnings compression ahead. Price-to-sales is 4.7x. Price-to-book is 17.2x. EV/EBITDA sits at 16.5x. Market capitalization is $103.52B.
Why it matters: A fairly valued stock means you are paying roughly what the business is worth today.
Growth & Profitability
Revenue is growing at 6.8% on a trailing basis. Earnings are expanding at 9.8%. Profit margins are 20.1%. Return on equity is 72.2%. Return on assets is 6.2%.
Why it matters: Growing revenue with healthy margins usually means the business is gaining market share or pricing power.
Risk Profile
Beta of 0.83 indicates market-average volatility. Net debt position is $1.28B.
Why it matters: Lower risk means steadier returns, but often with less upside in bull markets.
Analyst Context
Analyst consensus target of $287.60 implies 10.1% upside. Target range spans $225.00 to $322.00. 15 analysts cover the stock. Consensus recommendation: hold.
Why it matters: Analyst targets reflect what professionals expect over 12 months. A wide gap between price and target can mean the market disagrees with the consensus.
Investor Fit
Strong profitability metrics may appeal to quality-focused portfolios.
Takeaway: Match the stock's risk-reward profile with your own goals and time horizon. No single metric tells the whole story.
Data Methodology & Sources
Market Data (Facts)
- Price, volume, and market cap: Yahoo Finance (may be delayed)
- P/E, EPS, revenue, and debt: Yahoo Finance fundamentals
- Analyst estimates: Yahoo Finance (coverage and update times vary)
- Insider transactions: Yahoo Finance (reporting may be delayed)
QuantSoar Model (Derived)
- Fair value: available outputs from seven models; outliers are filtered using MAD (k=3.5), then combined with fixed model weights.
- Margin of Safety = (Fair Value − Displayed Price) / Displayed Price × 100
- Composite Score: 40% Value + 30% Momentum + 30% Risk
- Verdict Gauge: Base 50 + Valuation (up to ±25) + Whale sentiment (up to ±10) + Insider buying (+5) + Macro risk (up to ±10) + Technical signal (up to ±10). Analyst consensus is separate.
Model outputs are estimates based on available data and are not investment advice. Cross-check with primary sources before making investment decisions.
ADP Fairly Valued
Automatic Data Processing, Inc. (ADP) trades near our multi-model fair value estimate of $238.86 by approximately 8.6%.
Frequently Asked Questions
ValuationIs ADP stock overvalued right now?
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GrowthIs ADP still growing?
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About the Author
Phasakorn Traklang (Peach) — Founder
Phasakorn Traklang (Peach) is the founder of QuantSoar, bringing expertise in SEO, web development, and technical analytics to build an AI-powered investment platform accessible to retail investors worldwide.
Connect on LinkedInInvestment Disclaimer: Tax treatment can depend on tax residence, account type, and tax year. This information is general and is not personal tax or investment advice. SEC
Data: Yahoo Finance / SEC EDGAR / Alpha Vantage / Finnhub. AI outputs verified against source data.