ADP

$233.99

Public overview and default valuation.

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Valuation Details
Default assumptions: 10Y forecast, 9% market return, 2.5% terminal growth, 4.20% trendline growth.
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$221.75

With 20% Margin of Safety (MoS):

$177.40
-24.18% downside
Capital Efficiency
Average Quarterly ROIC
15.15%
Cost of Capital (estimated)11%
Value StatusCreating Value

The company is earning a higher return on invested capital than it costs to raise that capital — a sign of strong, efficient value creation.

Complete historical ROIC is available with
.
Fundamental Score
59
NeutralWeighted across 6 signals
DCF Discount
24.2% premium to price
10
FCF Yield
5.2% trailing FCF yield
79
ROIC vs WACC
ROIC 15.2% vs WACC 11.0% (1.4x)
69
Net Debt / FCF
0.4x net debt to FCF
93
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
6.0% 5Y FCF CAGR
55
Strengths: FCF Yield, Net Debt / FCF. Concerns: DCF Discount.
Narrative Score
73
Improving
Weighted across 5 recent drivers · Last 30 days-1 vs previousVs 6-Month Baseline: High (85th pct)
Trend: StableConfidence: 97%Updated: 2h ago
Sources: 103 (News 97 · Analyst 6)
Drivers
40 regulatory scrutiny+1.5
56 news sentiment+0.8
Macro headwinds+0.0
Analyst downgrades-0.0
5 analyst reiterations0.0
Other Metrics
P/E22.3
Profit Margin20.0%
Owner Earnings$4.89b
One Dollar Premise65.00%
Debt/Equity9.03
Current Ratio1.04
PEG8.403
Free Cash Flow (in millions)
20062007200820092010201120122013201420152016201720182019202020212022202320242025
$2,224$1,621$2,065$1,817$1,909$1,984$2,160$1,860$2,189$2,241$2,246$2,597$2,986$3,255$3,643$3,599$3,653$4,779$4,721$4,884
How Intrinziq Estimates Fair Value

Intrinziq estimates Automatic Data Processing, Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

Automatic Data Processing, Inc.Industrials

Automatic Data Processing, Inc. provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions. Its offerings include payroll, benefits administration, talent management, HR management, workforce management, insurance, retirement, and compliance services, as well as integrated HCM solutions. The PEO Services segment provides HR outsourcing solutions to small and mid-sized businesses through a co-employment model. This segment offers benefits package, protection and compliance, talent engagement, expertise, comprehensive outsourcing, and recruitment process outsourcing services. The company was founded in 1949 and is headquartered in Roseland, New Jersey.

Last updated: Feb 06, 2026
Data sources: Financial Modeling Prep
This valuation is based on assumptions and publicly available data. It is not financial advice or a recommendation to buy or sell any security. Always do your own research before making investment decisions.