Automatic Data Processing Valuation

Q: What is the Fair Price of ADPR34 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ADPR34 (R$74) is trading above our estimate of [[fair value]] (R$64.78)

Is ADPR34 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

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 ADPR34 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ADPR34 (R$74) is trading above our estimate of fair value (R$64.78)

Significantly Below Fair Value: ADPR34 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ADPR34?

Key metric: As ADPR34 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ADPR34. This is calculated by dividing ADPR34's market cap by their current earnings.
What is ADPR34's PE Ratio?
PE Ratio	32.3x
Earnings	US$3.85b
Market Cap	US$124.34b

ADPR34 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	6.5x
Enterprise Value/EBITDA	22x
PEG Ratio	5x

Price to Earnings Ratio vs Peers

How does ADPR34's PE Ratio compare to its peers?

The above table shows the PE ratio for ADPR34 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	37.9x
6098 Recruit Holdings	42.1x	9.6%	JP¥14.6t
PAYX Paychex	30.6x	6.3%	US$52.0b
PAYC Paycom Software	27.4x	2.4%	US$12.9b
PCTY Paylocity Holding	51.6x	14.9%	US$11.4b
ADPR34 Automatic Data Processing	32.3x	6.5%	R$124.3b

Price-To-Earnings vs Peers: ADPR34 is good value based on its Price-To-Earnings Ratio (32.3x) compared to the peer average (37.4x).

Price to Earnings Ratio vs Industry

How does ADPR34's PE Ratio compare vs other companies in the Global Professional Services Industry?

20 Companies	Price / Earnings	Estimated Growth	Market Cap

20 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: ADPR34 is expensive based on its Price-To-Earnings Ratio (32.3x) compared to the Global Professional Services industry average (20.4x).

Price to Earnings Ratio vs Fair Ratio

What is ADPR34'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.

ADPR34 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	32.3x
Fair PE Ratio	44.1x

Price-To-Earnings vs Fair Ratio: ADPR34 is good value based on its Price-To-Earnings Ratio (32.3x) compared to the estimated Fair Price-To-Earnings Ratio (44.1x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.