Automatic Data Processing, Inc.

LSE:0HJI Stock Report

Market Cap: US$101.5b

Automatic Data Processing Valuation

Is 0HJI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • 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 0HJI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0HJI ($247.79) is trading below our estimate of fair value ($392.45)

Significantly Below Fair Value: 0HJI is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0HJI?

Other financial metrics that can be useful for relative valuation.

0HJI 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/Revenue5.4x
Enterprise Value/EBITDA18.5x
PEG Ratio4.1x

Price to Earnings Ratio vs Peers

How does 0HJI's PE Ratio compare to its peers?

The above table shows the PE ratio for 0HJI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27.6x
REL RELX
37.7x9.2%UK£67.1b
HAS Hays
19.2x26.3%UK£1.6b
PAGE PageGroup
18.1x17.3%UK£1.4b
EXPN Experian
35.5x11.2%UK£33.6b
0HJI Automatic Data Processing
27.4x6.8%US$101.5b

Price-To-Earnings vs Peers: 0HJI is good value based on its Price-To-Earnings Ratio (27.4x) compared to the peer average (27.6x).


Price to Earnings Ratio vs Industry

How does 0HJI's PE Ratio compare vs other companies in the GB Professional Services Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a11.4%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a11.4%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: 0HJI is expensive based on its Price-To-Earnings Ratio (27.4x) compared to the UK Professional Services industry average (20.4x).


Price to Earnings Ratio vs Fair Ratio

What is 0HJI'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.

0HJI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio27.4x
Fair PE Ratio35.9x

Price-To-Earnings vs Fair Ratio: 0HJI is good value based on its Price-To-Earnings Ratio (27.4x) compared to the estimated Fair Price-To-Earnings Ratio (35.9x).


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 0HJI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$247.79
US$259.33
+4.7%
4.6%US$282.00US$238.00n/a17
Jun ’25US$242.45
US$259.33
+7.0%
4.6%US$282.00US$238.00n/a17
May ’25US$251.67
US$258.90
+2.9%
4.4%US$280.00US$238.00n/a18
Apr ’25US$249.78
US$257.34
+3.0%
5.2%US$280.00US$235.00n/a18
Mar ’25US$249.64
US$256.51
+2.8%
5.4%US$280.00US$227.00n/a18
Feb ’25US$245.08
US$252.80
+3.1%
5.5%US$280.00US$227.00n/a17
Jan ’25US$232.40
US$246.98
+6.3%
6.8%US$280.00US$217.00n/a18
Dec ’24US$232.18
US$246.98
+6.4%
6.8%US$280.00US$217.00n/a18
Nov ’24US$209.89
US$248.55
+18.4%
6.9%US$280.00US$217.00n/a17
Oct ’24US$240.60
US$258.38
+7.4%
6.9%US$285.00US$225.00n/a17
Sep ’24US$255.19
US$257.69
+1.0%
6.8%US$285.00US$225.00n/a18
Aug ’24US$247.72
US$253.67
+2.4%
6.2%US$285.00US$225.00n/a18
Jul ’24US$219.33
US$230.33
+5.0%
8.8%US$275.00US$176.00n/a18
Jun ’24US$211.38
US$230.59
+9.1%
8.8%US$275.00US$180.00US$242.4517
May ’24US$219.61
US$231.76
+5.5%
9.1%US$275.00US$180.00US$251.6717
Apr ’24US$220.77
US$243.71
+10.4%
6.5%US$278.00US$213.00US$249.7817
Mar ’24US$219.67
US$245.18
+11.6%
6.6%US$278.00US$213.00US$249.6417
Feb ’24US$223.01
US$245.18
+9.9%
6.6%US$278.00US$213.00US$245.0817
Jan ’24US$236.28
US$250.76
+6.1%
8.1%US$285.00US$213.00US$232.4017
Dec ’23US$267.21
US$248.88
-6.9%
7.4%US$280.00US$213.00US$232.1817
Nov ’23US$243.86
US$247.76
+1.6%
7.0%US$280.00US$213.00US$209.8917
Oct ’23US$228.95
US$244.82
+6.9%
8.2%US$280.00US$208.00US$240.6017
Sep ’23US$243.62
US$243.06
-0.2%
8.2%US$280.00US$208.00US$255.1917
Aug ’23US$242.20
US$236.82
-2.2%
7.2%US$280.00US$208.00US$247.7217
Jul ’23US$210.19
US$232.59
+10.7%
5.4%US$257.00US$201.00US$219.3317
Jun ’23US$222.93
US$232.47
+4.3%
5.6%US$257.00US$199.00US$211.3817

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


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