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

1.9k

n/a

yiannisz's Fair Value

n/a

-7.3%

5.2%

-7.3%

5.2%

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

Author's Valuation

US$387.7731.4% 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.

yiannisz'sFair Value

US$387.77

31.4% undervalued

Future estimation in

Growth p.a.

Decrease

Increase

Current revenue growth rate

5.32%

Professional Services revenue growth rate

0.22%

Risk Level (Discount Rate)

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

Decrease

Increase

Current discount rate

7.34%

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