Automatic Data Processing Inc (ADP) is undervalued and ServiceNow Inc (NOW) is slightly undervalued.
Against our estimates of intrinsic value, ADP trades at the wider discount: a margin of safety of +44%, against +9% for NOW.
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 10.4x revenue multiple, adjusted for growth and margin, values the shares at $150.34; the price of $137.00 is 9% below that value.
Leak Score 58/100 on 10 of 12 signals
| Metric | ADP | NOW |
|---|---|---|
| Verdict | Undervalued | Slightly undervalued |
| Price | $269.64 | $137.00 |
| Intrinsic value | $484.32 | $150.34 |
| Margin of safety | +44% | +9% |
| Leak Score | 95/100 (9/12) | 58/100 (10/12) |
| Market cap | $107.1B | $141.7B |
| Revenue growth, 5 years | 7.9% | 24.1% |
| Operating margin | 26.4% | 13.6% |
| Net margin | 20.1% | 11.3% |
| Return on equity | 72.2% | 14.2% |
| Debt to equity | 0.91 | 0.68 |
| P/E | 24.6x | 85.6x |
| Forward P/E | 20.1x | 27.3x |
| P/B | 17.8x | 11.3x |
| Dividend yield | 2.6% | — |