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Automatic Data Processing, Inc. (ADP)

Staffing & Employment Services ยท Industrials ยท $87.5B

fair
Intrinsic Value (Consensus)
$223.93
Current Price
$218.45
Margin of Safety
+2.5%
2.5% Below Intrinsic Value
Value: $224
Price: $218

Valuation Model Estimates

Current Price: $218.45
DCF (Discounted Cash Flow)
$218.82
Graham Number
$61.07
Earnings Power Value
$113.92
Relative Value (P/E)
$214.59
Dividend Discount Model
$348.38
Consensus Value
$223.93

Model Assumptions

Discount Rate
10.3%
Growth Rate
9.8%
Terminal Growth
2.5%
Risk-Free Rate
4.3%

Discount rate derived from CAPM (risk-free rate + beta ร— market risk premium). Growth rate based on trailing earnings growth, capped at 20%.

Health Score

B
78
Profitability
25/25
Strength
25/25
Valuation
15/25
Growth
13/25

Financial Health Signals

Strong profitability โ€” ROE of 66% (above 20% is excellent)
Low debt โ€” conservative balance sheet

Key Financials

EPS (TTM)
$10.73
EPS (Forward)
$11.78
Book Value
$15.45
P/E Ratio
20.0
Forward P/E
18.2
PEG Ratio
โ€”
ROE
65.9%
Debt/Equity
1%
Revenue Growth
7.1%
Earnings Growth
9.8%
Dividend Yield
2.5%
Beta
0.85

Data last updated: 2026-06-21

Source: Yahoo Finance