Automatic Data Processing, Inc.

LSE:0HJI Stock Report

Market Cap: US$124.3b

Automatic Data Processing Valuation

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

Below Fair Value: 0HJI ($305.91) is trading below our estimate of fair value ($358.54)

Significantly Below Fair Value: 0HJI is trading below fair value, but not by a significant amount.

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 Ratio32.3x
EarningsUS$3.85b
Market CapUS$124.34b

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 Average25.8x
REL RELX
36.5x8.1%UK£69.1b
PAGE PageGroup
21.3x28.2%UK£1.1b
EXPN Experian
37x12.7%UK£34.9b
STEM SThree
8.1x1.8%UK£460.1m
0HJI Automatic Data Processing
32.3x6.5%US$124.3b

Price-To-Earnings vs Peers: 0HJI is expensive based on its Price-To-Earnings Ratio (32.3x) compared to the peer average (25.8x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
IBPO iEnergizer
1.7xn/aUS$140.06m
TEK Tekcapital
1.5xn/aUS$20.74m
No more companies available in this PE range
0HJI 32.3xIndustry Avg. 23.5xNo. of Companies4PE01632486480+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0HJI is expensive based on its Price-To-Earnings Ratio (32.3x) compared to the UK Professional Services industry average (23.5x).

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 Ratio32.3x
Fair PE Ratio38.4x

Price-To-Earnings vs Fair Ratio: 0HJI is good value based on its Price-To-Earnings Ratio (32.3x) compared to the estimated Fair Price-To-Earnings Ratio (38.4x).

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$305.91
US$298.67
-2.4%
4.5%US$325.00US$280.00n/a15
Nov ’25US$288.40
US$296.92
+3.0%
4.3%US$325.00US$280.00n/a13
Oct ’25US$280.22
US$276.73
-1.2%
4.6%US$310.00US$260.00n/a16
Sep ’25US$273.75
US$274.55
+0.3%
4.5%US$310.00US$260.00n/a16
Aug ’25US$260.64
US$267.63
+2.7%
4.4%US$287.00US$238.00n/a17
Jul ’25US$235.58
US$259.33
+10.1%
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$217.00US$288.4017
Oct ’24US$240.60
US$258.38
+7.4%
6.9%US$285.00US$225.00US$280.2217
Sep ’24US$255.19
US$257.69
+1.0%
6.8%US$285.00US$225.00US$273.7518
Aug ’24US$247.72
US$253.67
+2.4%
6.2%US$285.00US$225.00US$260.6418
Jul ’24US$219.33
US$230.33
+5.0%
8.8%US$275.00US$176.00US$235.5818
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

Analyst Forecast: Target price is lower than the current share price.

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