Automatic Data Processing, Inc.
FAIR PRICE VALUATION
Updated daily
Model: DCF 50% · Relative 30% · Consensus 20%
MARKET PRICE
$212.16
FAIR PRICE
$199.94
MARGIN
$12.22
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FPI RATING
Stable earnings and revenue and strong profitability, but expensive valuation relative to fundamentals.
Analytical data, not an investment recommendation. Updated daily.
How we calculate this ↗MARGIN OF SAFETY
A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.
SAFETY MARGIN
20%
Below fair value
ENTRY LEVEL
$159.95
Fair price × 0.80
DISTANCE
24.6%
Price to entry level
At the current price of $212.16, ADP trades 24.6% above the conservative entry level of $159.95. This entry level represents a 20% margin of safety below the calculated fair price of $199.94 — a buffer that accounts for estimation uncertainty in the valuation model.
Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗
VALUATION HISTORY
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P/E RATIO HISTORY
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METHODOLOGY
How we calculate ADP's fair price
Automatic Data Processing, Inc.'s fair price of $199.94 is derived from a blended model that combines DCF analysis (50%), relative valuation against Industrials peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $212.16, ADP trades 5.8% above its calculated fair value.
DCF MODEL · 50%
Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting ADP's risk profile.
RELATIVE · 30%
Comparing ADP's valuation multiples against Industrials peers to determine if the stock is over or undervalued relative to its industry.
ANALYST · 20%
Aggregated analyst price targets for ADP, weighted by recency and analyst accuracy.
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What is the fair price of ADP?+
Based on our blended model combining DCF analysis (50%), relative valuation against Industrials peers (30%), and analyst consensus (20%), the fair price for Automatic Data Processing, Inc. is $199.94. At the current market price of $212.16, ADP trades 5.8% above its calculated fair value.
Is ADP overvalued or undervalued?+
Automatic Data Processing, Inc. is currently fair based on our valuation model. The stock trades at $212.16, which is 5.8% above the fair price of $199.94. The P/E ratio of 19.1x is a key metric in the valuation.
What is the margin of safety for ADP?+
With a 20% margin of safety applied to the fair price of $199.94, the conservative entry level for ADP is $159.95. At the current market price of $212.16, the stock trades 24.6% above this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.
How often is ADP's fair price updated?+
We update fair price calculations for ADP daily after market close. The current fair price of $199.94 incorporates the latest market data and sector multiples.
What factors affect ADP's fair price calculation?+
ADP's fair price of $199.94 is derived from DCF analysis (50% weight), relative valuation against Industrials peers (30% weight), and analyst consensus (20% weight). Key metrics include P/E of 19.1x, ROE of 68.3%, and dividend yield of 4.11%.
Is ADP a good buy right now?+
At $212.16, ADP trades 5.8% above our fair value estimate of $199.94. The stock is currently fair. ROE stands at 68.3% (exceptional). Fair Price Index provides valuation data — always do your own research before investing.
Does ADP pay dividends?+
ADP has a dividend yield of 4.11%.
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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.