Automatic Data Processing Inc (ADP) is undervalued and Snowflake Inc (SNOW) is overvalued.
Against our estimates of intrinsic value, ADP trades at the wider discount: a margin of safety of +44%, against -453% for SNOW.
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 3.6x revenue multiple, discounted for its losses, values the shares at $60.85; the price of $336.59 is 453% above that value.
Leak Score 30/100 on 6 of 12 signals
| Metric | ADP | SNOW |
|---|---|---|
| Verdict | Undervalued | Overvalued |
| Price | $269.64 | $336.59 |
| Intrinsic value | $484.32 | $60.85 |
| Margin of safety | +44% | -453% |
| Leak Score | 95/100 (9/12) | 30/100 (6/12) |
| Market cap | $107.1B | $118.7B |
| Revenue growth, 5 years | 7.9% | 51.2% |
| Operating margin | 26.4% | -22.3% |
| Net margin | 20.1% | -20.1% |
| Return on equity | 72.2% | -48.2% |
| Debt to equity | 0.91 | 1.29 |
| P/E | 24.6x | — |
| Forward P/E | 20.1x | 111.3x |
| P/B | 17.8x | 55.2x |
| Dividend yield | 2.6% | — |