Automatic Data Processing, Inc.

BRSE:ADP Stock Report

Market Cap: CHF 88.6b

Automatic Data Processing Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow 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.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: ADP (CHF225.64) is trading below our estimate of future cash flow value (CHF246.8)

Significantly Below Future Cash Flow Value: ADP is trading below future cash flow value, but not by a significant amount.

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 Ratio24.4x
EarningsUS$4.41b
Market CapUS$107.75b

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 Average27.1x
ADEN Adecco Group
15.4x14.71%CHF 4.3b
SGSN SGS
27.7x10.03%CHF 18.4b
6098 Recruit Holdings
41.7x17.32%JP¥24.2t
PAYX Paychex
23.5x8.45%US$41.3b
ADP Automatic Data Processing
24.4x7.20%CHF 107.7b

Price-To-Earnings vs Peers: ADP is good value based on its Price-To-Earnings Ratio (24.4x) compared to the peer average (27.1x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ADP 24.4xIndustry Avg. 17.5xNo. of Companies16PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ADP is expensive based on its Price-To-Earnings Ratio (24.4x) compared to the European Professional Services industry average (17.5x).

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 Ratio24.4x
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
CurrentCHF 225.64
CHF 234.86
+4.09%
7.56%CHF 262.95CHF 183.74n/a15
Sep ’27n/a
CHF 232.72
0%
7.56%CHF 260.55CHF 182.06n/a15
Aug ’27n/a
CHF 231.73
0%
7.65%CHF 260.30CHF 181.88n/a15
Jul ’27CHF 190.60
CHF 199.58
+4.71%
11.96%CHF 246.64CHF 153.65n/a15
Jun ’27n/a
CHF 193.77
0%
12.08%CHF 239.92CHF 149.46n/a15
May ’27n/a
CHF 192.87
0%
12.69%CHF 238.42CHF 148.52n/a15
Apr ’27n/a
CHF 211.41
0%
13.37%CHF 265.46CHF 166.31n/a15
Mar ’27n/a
CHF 214.49
0%
9.51%CHF 257.34CHF 178.28n/a14
Feb ’27n/a
CHF 216.27
0%
8.55%CHF 256.64CHF 177.79n/a14
Jan ’27n/a
CHF 229.34
0%
8.25%CHF 262.97CHF 182.18n/a13
Dec ’26n/a
CHF 236.37
0%
7.63%CHF 267.63CHF 197.49n/a13
Nov ’26n/a
CHF 235.95
0%
7.63%CHF 267.14CHF 197.14n/a13
Oct ’26n/a
CHF 253.73
0%
4.35%CHF 271.14CHF 231.27n/a12
Sep ’26n/a
CHF 259.07
0%
3.45%CHF 275.04CHF 246.73n/a12
Aug ’26n/a
CHF 259.67
0%
4.11%CHF 281.78CHF 245.55n/a13
Jul ’26n/a
CHF 251.87
0%
4.62%CHF 279.97CHF 232.86CHF 190.6015
Jun ’26n/a
CHF 258.13
0%
4.65%CHF 289.63CHF 239.98n/a15
May ’26n/a
CHF 256.40
0%
4.84%CHF 290.35CHF 235.73n/a15
Apr ’26n/a
CHF 271.20
0%
5.02%CHF 306.78CHF 249.06n/a15
Mar ’26n/a
CHF 277.23
0%
4.93%CHF 314.00CHF 254.93n/a15
Feb ’26n/a
CHF 280.63
0%
5.23%CHF 318.75CHF 256.01n/a15
Jan ’26n/a
CHF 261.39
0%
5.00%CHF 286.15CHF 237.72n/a16
Dec ’25n/a
CHF 261.39
0%
5.00%CHF 286.15CHF 237.72n/a16
Nov ’25n/a
CHF 256.83
0%
4.82%CHF 282.95CHF 235.06n/a14
Oct ’25n/a
CHF 234.02
0%
4.62%CHF 262.15CHF 219.87n/a16
Sep ’25n/a
CHF 231.05
0%
4.54%CHF 260.89CHF 218.81n/a16
CHF 239.26
Fair Value
5.7% undervalued intrinsic discount
15
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/09/20 21:43
End of Day Share Price 2026/09/16 00:00
Earnings2026/06/30
Annual Earnings2026/06/30

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.

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 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 Github.

Analyst Sources

Automatic Data Processing, Inc. is covered by 38 analysts. 16 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
Gary BisbeeBarclays