Automatic Data Processing, Inc.Opportunity Rank #111(ADP) Intrinsic Value & DCF Analysis (2026)
Current Price
$255.27
Last updated: Jul 20, 2026
Price vs Intrinsic Value
Fundamental Score
Weighted across 6 signals
Narrative Score
No change vs previous
Trend Score
As of 2026-07-17
The intrinsic value of Automatic Data Processing, Inc. (ADP) is estimated at $256.39 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $255.27, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 4.24% long-term growth rate and an 8.61% discount rate, reflecting expected future free cash flow and cost of capital.
The intrinsic value of Automatic Data Processing, Inc. (ADP) is estimated at $256.39 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $255.27, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 4.24% long-term growth rate and an 8.61% discount rate, reflecting expected future free cash flow and cost of capital.Valuation Details
Capital Efficiency
The company is earning a higher return on invested capital than it costs to raise that capital — a sign of strong, efficient value creation.
Fundamental Details
Narrative Details
Trend Details
Investment Coach
- Monitor whether valuation discount remains above 10%.
- Confirm ROIC stays above cost of capital over coming quarters.
- Follow narrative trend for meaningful shifts in the score direction.
Free Cash Flow (in millions)
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.Technology
Automatic Data Processing, Inc. (ADP) is a global provider of cloud-based solutions designed for human capital management (HCM). The company organizes its operations into two primary segments: Employer Services and Professional Employer Organization (PEO). Through its Employer Services division, ADP delivers strategic, cloud-powered platforms and comprehensive human resources (HR) outsourcing. This encompasses a wide array of services such as payroll processing, benefits administration, talent acquisition and management, general HR and workforce management, insurance, retirement planning, and regulatory compliance, often integrated into holistic HCM solutions. Conversely, the Professional Employer Organization (PEO) segment specializes in offering HR outsourcing to small and mid-sized businesses, leveraging a co-employment framework. This segment's offerings span robust benefits packages, regulatory protection and compliance, talent engagement strategies, specialized HR expertise, all-encompassing outsourcing, and even recruitment process outsourcing. Established in 1949, ADP maintains its corporate headquarters in Roseland, New Jersey.