As of 2025-07-04, the Intrinsic Value of Automatic Data Processing Inc (ADP) is 349.90 USD. This ADP valuation is based on the model Discounted Cash Flows (Growth Exit 5Y). With the current market price of 309.20 USD, the upside of Automatic Data Processing Inc is 13.2%.

The range of the Intrinsic Value is 226.96 - 809.73 USD.

Is ADP undervalued or overvalued?

Based on its market price of 309.20 USD and our intrinsic valuation, Automatic Data Processing Inc (ADP) is undervalued by 13.2%.

309.20 USD

Stock Price

349.90 USD

Intrinsic Value

Intrinsic Value Details

ADP Intrinsic Value - Valuation Summary

	Range	Selected	Upside
a
DCF (Growth Exit 5Y)	226.96 - 809.73	349.90	13.2%
DCF (Growth Exit 10Y)	280.11 - 944.81	421.40	36.3%
DCF (EBITDA Exit 5Y)	214.54 - 304.37	250.57	-19.0%
DCF (EBITDA Exit 10Y)	266.22 - 395.32	318.23	2.9%
Peter Lynch Fair Value	102.6 - 102.6	102.6	-66.82%
P/E Multiples	280.44 - 310.99	302.34	-2.2%
EV/EBITDA Multiples	142.34 - 263.24	203.45	-34.2%
Earnings Power Value	94.06 - 141.52	117.79	-61.9%
Dividend Discount Model - Stable	103.76 - 491.33	297.54	-3.8%
Dividend Discount Model - Multi Stages	197.22 - 690.68	302.77	-2.1%

ADP Intrinsic Value - Peers Comparison

	Range	Selected	Upside
a
Paychex Inc	89.23 - 651.79	157.35	6.9%
Fidelity National Information Services Inc	51.67 - 415.07	101.02	23.5%
Global Payments Inc	72.76 - 148.66	101.46	24.0%
Jack Henry & Associates Inc	109.29 - 586.7	181.40	0.0%
Exlservice Holdings Inc	39.62 - 155.83	62.76	38.6%
Maximus Inc	59.12 - 423.51	112.70	56.4%
Evertec Inc	30.36 - 97.85	47.99	27.9%
Sykes Enterprises Inc	16.68 - 27.04	20.21	-62.6%
Steel Connect Inc	41.7 - 43.41	42.40	248.1%

ADP Intrinsic Value - Key Valuation Metrics

Market Cap (mil)	125,510
Beta	0.54
Outstanding shares (mil)	406
Enterprise Value (mil)	126,813

Market risk premium	5.1%
Cost of Equity	7.2%
Cost of Debt	5.45%
WACC	7.2%