Fundamentals Overview
Automatic Data Processing, Inc. is near the low of its 52-week range with premium valuation, trading relatively flat today.
Valuation premium
Intrinsic value (DCF)
+64.2% upside vs price
Profitability
Risk (Beta)
0.84 — in line vol
Earnings & growth
BullzEye Analysis
Our composite tilts Hold on technicals (e.g. RSI, ADX, trend), fundamentals, sentiment, sector and index context, and risk.
Composite Signal
Supporting (Buy):
DCF +64.2% upside vs price · Analyst grade: A-
Pressures (Sell):
3M vs S&P 500: -5.6%
Not financial advice. For education and research only; do your own research and consider a financial advisor before investing.
Key Stats
About
Ratings & Grades at a Glance
Overall rating: A-. Recent institutional grades: mixed. Current institutional positions: Buy: 1, Equal Weight: 4, Hold: 6, Neutral: 7, Outperform: 1, Overweight: 2, Sector Perform: 3, Underperform: 1, Underweight: 5.
Valuation & Ratios
Valuation, liquidity, and profitability metrics are consolidated here (including ratios that previously appeared in the Financials story). Trailing (TTM) vs forward-looking (e.g. DCF) is noted on each line where it matters.
DCF vs price: DCF estimate is $364.17; current price is $221.84. That’s a +64.2% gap. When the gap is large (e.g. >20%), that’s divergence; when they’re close, that’s convergence. Differences can reflect growth expectations, sector premiums, or conservative vs. optimistic assumptions. Use DCF as one input alongside technicals and sentiment.
| Metric | Value |
|---|---|
| Valuation | |
| P/E (TTM) | 20.54 |
| DCF value (model) | $364.17 (64.2% upside) |
| PEG (TTM) | 2.37 |
| P/B (TTM) | 14.01 |
| P/S (TTM) | 4.11 |
| P/FCF (TTM) | 17.21 |
| Liquidity & enterprise | |
| Current Ratio (TTM) | 1.04 |
| Quick Ratio (TTM) | 1.04 |
| Cash Ratio (TTM) | 0.06 |
| Profitability | |
| ROE (TTM) | N/A |
| ROA (TTM) | N/A |
| Revenue growth (YoY) | N/A |
| Net margin (TTM) | 20.12% |
| Gross margin (TTM) | 47.48% |
| Operating margin (TTM) | 19.2% |
| Debt to equity (TTM) | N/A |
Latest News
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Price Target, Ratings & Grades
Analyst price targets, consensus, rating snapshot, and institutional grades for ADP.
Analyst Sentiment at a Glance
Stock Grades (Institutions)
| Institution | Action | Previous Grade | New Grade | Date |
|---|---|---|---|---|
| Wells Fargo | upgrade | Underweight | Equal Weight | 2026-05-18 |
| Argus Research | maintain | Buy | Buy | 2026-05-05 |
| TD Cowen | maintain | Hold | Hold | 2026-04-30 |
| UBS | maintain | Neutral | Neutral | 2026-04-30 |
| Citigroup | maintain | Neutral | Neutral | 2026-04-30 |
| Cantor Fitzgerald | maintain | Overweight | Overweight | 2026-04-21 |
| UBS | maintain | Neutral | Neutral | 2026-04-13 |
| Wells Fargo | maintain | Underweight | Underweight | 2026-03-27 |
| Stifel | maintain | Hold | Hold | 2026-02-09 |
| Citigroup | maintain | Neutral | Neutral | 2026-01-29 |
| Morgan Stanley | maintain | Equal Weight | Equal Weight | 2026-01-29 |
| Stifel | maintain | Hold | Hold | 2026-01-29 |
| Wells Fargo | maintain | Underweight | Underweight | 2026-01-29 |
| JP Morgan | maintain | Underweight | Underweight | 2026-01-29 |
| Jefferies | downgrade | Hold | Underperform | 2025-12-16 |
| JP Morgan | maintain | Underweight | Underweight | 2025-10-30 |
| Wells Fargo | maintain | Underweight | Underweight | 2025-10-30 |
| UBS | maintain | Neutral | Neutral | 2025-09-17 |
| Morgan Stanley | maintain | Equal Weight | Equal Weight | 2025-07-31 |
| Stifel | maintain | Hold | Hold | 2025-07-31 |
| Morgan Stanley | maintain | Equal Weight | Equal Weight | 2025-06-17 |
| UBS | maintain | Neutral | Neutral | 2025-06-13 |
| Mizuho | maintain | Outperform | Outperform | 2025-06-13 |
| RBC Capital | maintain | Sector Perform | Sector Perform | 2025-06-05 |
| TD Securities | maintain | Hold | Hold | 2025-05-21 |
| RBC Capital | maintain | Sector Perform | Sector Perform | 2025-05-01 |
| TD Securities | maintain | Hold | Hold | 2025-05-01 |
| RBC Capital | maintain | Sector Perform | Sector Perform | 2025-04-24 |
| UBS | maintain | Neutral | Neutral | 2025-03-04 |
| Barclays | maintain | Overweight | Overweight | 2025-02-03 |