Automatic Data Processing, Inc.

WBAG:ADP Stock Report

Market Cap: €114.8b

Automatic Data Processing Valuation

Is ADP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ADP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ADP (€282.35) is trading below our estimate of fair value (€354.32)

Significantly Below Fair Value: ADP is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ADP?

Key metric: As ADP is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ADP. This is calculated by dividing ADP's market cap by their current earnings.
What is ADP's PE Ratio?
PE Ratio31.1x
EarningsUS$3.85b
Market CapUS$119.80b

Price to Earnings Ratio vs Peers

How does ADP's PE Ratio compare to its peers?

The above table shows the PE ratio for ADP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average36.9x
6098 Recruit Holdings
44.3x10.1%JP¥16.1t
PAYX Paychex
29.2x6.4%US$50.2b
PAYC Paycom Software
24.6x2.4%US$11.6b
PCTY Paylocity Holding
49.5x15.0%US$11.0b
ADP Automatic Data Processing
31.1x6.5%€119.8b

Price-To-Earnings vs Peers: ADP is good value based on its Price-To-Earnings Ratio (31.1x) compared to the peer average (36.9x).

Price to Earnings Ratio vs Industry

How does ADP's PE Ratio compare vs other companies in the European Professional Services Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ADP 31.1xIndustry Avg. 18.5xNo. of Companies12PE01224364860+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ADP is expensive based on its Price-To-Earnings Ratio (31.1x) compared to the European Professional Services industry average (18.5x).

Price to Earnings Ratio vs Fair Ratio

What is ADP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ADP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio31.1x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ADP's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ADP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€282.35
€280.20
-0.8%
5.0%€306.74€254.83n/a16
Dec ’25€291.30
€280.20
-3.8%
5.0%€306.74€254.83n/a16
Nov ’25€266.40
€272.23
+2.2%
4.8%€299.91€249.16n/a14
Oct ’25€251.20
€247.62
-1.4%
4.6%€277.39€232.65n/a16
Sep ’25€247.10
€245.47
-0.7%
4.5%€277.17€232.47n/a16
Aug ’25€241.15
€248.01
+2.8%
4.4%€265.96€220.55n/a17
Jul ’25€221.20
€242.53
+9.6%
4.6%€263.73€222.58n/a17
Jun ’25€222.85
€241.75
+8.5%
4.6%€262.88€221.86n/a17
May ’25€227.30
€242.15
+6.5%
4.4%€261.88€222.60n/a18
Apr ’25€231.00
€237.60
+2.9%
5.2%€258.52€216.98n/a18
Mar ’25€230.20
€237.32
+3.1%
5.4%€259.06€210.02n/a18
Feb ’25€224.50
€232.58
+3.6%
5.5%€257.60€208.84n/a17
Jan ’25€210.15
€230.92
+9.9%
6.8%€261.80€202.90n/a18
Dec ’24€212.75
€230.92
+8.5%
6.8%€261.80€202.90€291.3018
Nov ’24€196.02
€235.23
+20.0%
6.9%€264.99€205.37€266.4017
Oct ’24€229.30
€241.94
+5.5%
6.9%€266.87€210.69€251.2017
Sep ’24€236.00
€237.59
+0.7%
6.8%€262.77€207.45€247.1018
Aug ’24€226.35
€230.10
+1.7%
6.2%€258.52€204.10€241.1518
Jul ’24€200.90
€211.47
+5.3%
8.8%€252.48€161.59€221.2018
Jun ’24€195.22
€212.46
+8.8%
8.8%€253.39€165.85€222.8517
May ’24€196.18
€210.33
+7.2%
9.1%€249.56€163.35€227.3017
Apr ’24€203.60
€224.67
+10.3%
6.5%€256.29€196.36€231.0017
Mar ’24€204.55
€225.64
+10.3%
6.6%€255.84€196.02€230.2017
Feb ’24€204.45
€225.64
+10.4%
6.6%€255.84€196.02€224.5017
Jan ’24€224.15
€238.05
+6.2%
8.1%€270.55€202.20€210.1517
Dec ’23€252.35
€239.28
-5.2%
7.4%€269.19€204.78€212.7517

Analyst Forecast: Target price is less than 20% higher than the current share price.

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 18:00
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2024/06/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Automatic Data Processing, Inc. is covered by 49 analysts. 15 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
null nullArgus Research Company
Mark MarconBaird
Ishan MajumdarBaptista Research