Automatic Data Processing Inc (ADP) is undervalued and Salesforce Inc (CRM) is undervalued.
Against our estimates of intrinsic value, CRM trades at the wider discount: a margin of safety of +55%, against +44% for ADP.
Values as of the 22 Sept 2026 close.
A 8.8x revenue multiple, adjusted for growth and margin, values the shares at $484.32; the price of $269.64 is 44% below that value.
Leak Score 95/100 on 9 of 12 signals
A 9.7x revenue multiple, adjusted for growth and margin, values the shares at $513.01; the price of $233.28 is 55% below that value.
Leak Score 75/100 on 9 of 12 signals
| Metric | ADP | CRM |
|---|---|---|
| Verdict | Undervalued | Undervalued |
| Price | $269.64 | $233.28 |
| Intrinsic value | $484.32 | $513.01 |
| Margin of safety | +44% | +55% |
| Leak Score | 95/100 (9/12) | 75/100 (9/12) |
| Market cap | $107.1B | $192.0B |
| Revenue growth, 5 years | 7.9% | 14.3% |
| Operating margin | 26.4% | 21.5% |
| Net margin | 20.1% | 22.0% |
| Return on equity | 72.2% | 19.4% |
| Debt to equity | 0.91 | 1.10 |
| P/E | 24.6x | 21.3x |
| Forward P/E | 20.1x | 14.5x |
| P/B | 17.8x | 5.0x |
| Dividend yield | 2.6% | 0.5% |