Automatic Data Processing

ADP Stock: Solid Fundamentals, But AI Investments Test Its Margin Resilience

yiannisz

Not Invested

Community Contributor

Published

29 Oct 25

Updated

23 Dec 25

Views

n/a

yiannisz's Fair Value

n/a

-29.9%

1.1%

-29.9%

1.1%

You can edit this narrative until Dec 24 2:25 PM. Then, changes will post as Updates.

Author's Valuation

US$387.7743.7% undervalued

yiannisz's Fair Value

Narrative

Updates1

Shared on 23 Dec 25

ADP Stock: Why Boring Payroll Is One of the Most Durable Businesses in Tech

Automatic Data Processing (NASDAQ: ADP) is rarely described as exciting. It doesn’t launch viral products or chase consumer trends.

Valuator

Company Info

Notes

yiannisz'sFair Value

US$387.77

43.7% undervalued

Future estimation in

Revenue

Profit Margin

Future PE

Growth p.a.

Decrease

Increase

Forecast revenue growth rate

5.34%

Historical revenue growth rate

7.66%

Professional Services revenue growth rate

0.23%

Risk Level (Discount Rate)

Our default considers factors like the company's size, volatility, profitablity and country of operation.

Decrease

Increase

Current discount rate

7.23%

Calculation

US$7.75b

Earnings '30

27.77x

PE Ratio '30

US$215.06b

Market Cap '30

US$215.06b

Market Cap '30

393.30m

No. shares '30

US$546.80

Share Price '30

US$546.80 Share Price '30

Discounted to 2025 @ 7.12% p.a.

US$387.72

Fair Value '25