Automatic Data Processing Inc (ADP)

NASD · Technology · Software - Application · USA

Automatic Data Processing Inc is a large cap company (market value between $10 billion and $200 billion) in the Software - Application industry.

Automatic Data Processing provides human capital management solutions to employers worldwide, including payroll, benefits administration, talent management, workforce management, and HR outsourcing. The company operates through Employer Services, serving businesses of all sizes, and Professional Employer Organization services under the ADP TotalSource brand. ADP operates globally with cloud-based platforms designed for small businesses through large enterprises.

From its FY2026 annual report (Form 10-K)

Intrinsic value, DCF valuation, financial health and value investing analysis for the Automatic Data Processing Inc stock.

Our verdict on ADP

Undervalued: intrinsic value $485.56 per share, market price $287.03, margin of safety 40.9% (as of 2026-10-19).

A 8.8x revenue multiple, adjusted for growth and margin, values the shares at $485.56; the price of $287.03 is 41% below that value.

Leak Score: 85/100 on 11 of 12 signals (Strong Leak).

ETFs with the most weight in ADP

17 more funds hold it; the full list is part of the paid plan.

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29 more in this industry show a wider margin of safety.

Is ADP undervalued or overvalued?

ADP is undervalued (as of the 2026-10-19 close). A 8.8x revenue multiple, adjusted for growth and margin, values the shares at $485.56; the price of $287.03 is 41% below that value.

What is the intrinsic value of ADP?

$485.56 per share (as of the 2026-10-19 close), against a market price of $287.03. That is a margin of safety of 40.9%. The value is the average of the valuation methods that apply to this company, recomputed every night after the US close.

What is priced into ADP stock?

The price pays less for each dollar of sales than its growth and margins justify. Times its sales the price pays: 5.2x. Multiple we apply for its growth and margins: 8.8x.

What is Automatic Data Processing Inc's Leak Score?

85 out of 100, which we rate "Strong Leak", on 11 of 12 value investing signals.