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Is ADP overvalued?

boothcheck doesn't label ADP overvalued or undervalued, and it doesn't publish a fair value. It shows what the price assumes instead. At today's price, ADP is priced for growth of +7.7%, and an operating margin near 10.4% versus the 27.7% it earns today. Asset, earnings-power and peer-multiple models all land far below the price; ONLY the growth-DCF reaches it. The bet is durable compounding the static frames structurally cannot price (a moat/durability premium). The more the price assumes beyond what AUTOMATIC DATA PROCESSING INC has actually delivered, the more has to go right to justify it. Whether that bar is too high is your call, and the full bull and bear cases are in the report.

Derived from AUTOMATIC DATA PROCESSING INC's SEC EDGAR filings via a reverse-DCF inversion. Last analyzed July 3, 2026.

Implied growth+7.7%
For about
Margin needed10.4%
Margin today27.7%
Price vs asset value1.72x
Price vs earnings power1.79x
Price vs peer multiples1.58x
Price vs forward growth1.08x
Read the full ADP report →
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For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.