Automatic Data Processing, Inc.

LSE:0HJI Stock Report

Market Cap: US$91.1b

Automatic Data Processing Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 Future Cash Flow 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.

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: 0HJI ($224.59) is trading below our estimate of future cash flow value ($420.28)

Significantly Below Future Cash Flow Value: 0HJI is trading below future cash flow value by more than 20%.

Key Valuation Metric

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

Key metric: As 0HJI is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0HJI. This is calculated by dividing 0HJI's market cap by their current earnings.
What is 0HJI's PE Ratio?
PE Ratio21.5x
EarningsUS$4.24b
Market CapUS$91.09b

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 Average29.8x
REL RELX
23x8.47%UK£47.4b
EXPN Experian
24.5x12.17%UK£25.0b
PAGE PageGroup
53.6x52.91%UK£470.9m
ITRK Intertek Group
18x8.17%UK£6.2b
0HJI Automatic Data Processing
21.5x5.99%US$91.1b

Price-To-Earnings vs Peers: 0HJI is good value based on its Price-To-Earnings Ratio (21.5x) compared to the peer average (29.8x).

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
IBPO iEnergizer
1.7xn/aUS$140.06m
No more companies available in this PE range
0HJI 21.5xIndustry Avg. 18.9xNo. of Companies4PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0HJI is expensive based on its Price-To-Earnings Ratio (21.5x) compared to the UK Professional Services industry average (18.9x).

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 Ratio21.5x
Fair PE Ratio34x

Price-To-Earnings vs Fair Ratio: 0HJI is good value based on its Price-To-Earnings Ratio (21.5x) compared to the estimated Fair Price-To-Earnings Ratio (34x).

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$224.59
US$272.00
+21.11%
10.34%US$332.00US$230.00n/a14
Feb ’27US$246.00
US$279.79
+13.73%
8.55%US$332.00US$230.00n/a14
Jan ’27US$258.83
US$289.54
+11.87%
8.25%US$332.00US$230.00n/a13
Dec ’26US$256.63
US$293.23
+14.26%
7.63%US$332.00US$245.00n/a13
Nov ’26US$261.46
US$293.23
+12.15%
7.63%US$332.00US$245.00n/a13
Oct ’26US$290.38
US$318.17
+9.57%
4.35%US$340.00US$290.00n/a12
Sep ’26US$304.29
US$320.25
+5.24%
3.45%US$340.00US$305.00n/a12
Aug ’26US$301.72
US$322.54
+6.90%
4.11%US$350.00US$305.00n/a13
Jul ’26US$311.01
US$314.87
+1.24%
4.62%US$350.00US$291.11n/a15
Jun ’26US$325.29
US$311.94
-4.10%
4.65%US$350.00US$290.00n/a15
May ’26US$298.16
US$309.08
+3.66%
4.84%US$350.00US$284.15n/a15
Apr ’26US$305.10
US$309.41
+1.41%
5.02%US$350.00US$284.15n/a15
Mar ’26US$312.53
US$309.01
-1.13%
4.93%US$350.00US$284.15US$214.5415
Feb ’26US$303.42
US$308.14
+1.56%
5.23%US$350.00US$281.11US$246.0015
Jan ’26US$292.33
US$296.88
+1.56%
5.00%US$325.00US$270.00US$258.8316
Dec ’25US$306.93
US$296.88
-3.27%
5.00%US$325.00US$270.00US$256.6316
Nov ’25US$288.40
US$295.00
+2.29%
4.82%US$325.00US$270.00US$261.4614
Oct ’25US$280.22
US$276.73
-1.24%
4.62%US$310.00US$260.00US$290.3816
Sep ’25US$273.75
US$274.55
+0.29%
4.54%US$310.00US$260.00US$304.2916
Aug ’25US$260.64
US$267.63
+2.68%
4.37%US$287.00US$238.00US$301.7217
Jul ’25US$235.58
US$259.33
+10.08%
4.59%US$282.00US$238.00US$311.0117
Jun ’25US$242.45
US$259.33
+6.96%
4.59%US$282.00US$238.00US$325.2917
May ’25US$251.67
US$258.90
+2.87%
4.43%US$280.00US$238.00US$298.1618
Apr ’25US$249.78
US$257.34
+3.03%
5.16%US$280.00US$235.00US$305.1018
Mar ’25US$249.64
US$256.51
+2.75%
5.38%US$280.00US$227.00US$312.5318
US$270.02
Fair Value
16.8% undervalued intrinsic discount
14
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/03/07 17:25
End of Day Share Price 2026/03/06 00:00
Earnings2025/12/31
Annual Earnings2025/06/30

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 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 Github.

Analyst Sources

Automatic Data Processing, Inc. is covered by 40 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
Ramsey El-AssalBarclays