What Is ADP Fair Value?
Automatic Data Processing (ADP) fair value estimate using multiple valuation models, updated daily.
As of October 14, 2026, Automatic Data Processing (ADP) has a composite fair value estimate of $200.34 based on four valuation models: DCF (35% weight), Graham Number (25% weight), PEG (25% weight), and DDM (15% weight). The current market price is $275.90, suggesting the stock is overvalued by 27.4%.
Data as of October 14, 2026 (today)
Composite Fair Value
Overvalued4 of 4 models$200.34
vs. current price of $275.90(-27.4%)
How Is ADP Fair Value Calculated?
Four independent models estimate what ADP is worth. Each uses different inputs and assumptions. The composite blends them by weight.
ADP Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
35% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
$311.43
+12.9%Fair Value
Inputs used
DDM (Dividend Discount Model)
15% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
$168.50
-38.9%Overvalued
Inputs used
ADP Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
25% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
$64.68
-76.6%Overvalued
Inputs used
PEG (Price/Earnings to Growth)
25% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$122.63
-55.6%Overvalued
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
Current price $275.90 is 12.9% below this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $5.76B | $5.29B |
| Year 2 | $6.32B | $5.33B |
| Year 3 | $6.94B | $5.38B |
| Year 4 | $7.62B | $5.42B |
| Year 5 | $8.36B | $5.47B |
| Year 6 | $9.18B | $5.51B |
| Year 7 | $10.08B | $5.56B |
| Year 8 | $11.06B | $5.60B |
| Year 9 | $12.15B | $5.65B |
| Year 10 | $13.34B | $5.70B |
| Terminal Value | $214.35B | $91.57B |
What Are ADP's Key Financial Metrics?
Earnings & Growth
Current Price
$275.90
EPS (TTM)
$10.94
Forward P/E
20.6
Profit Margin
20.1%
Cash & Balance Sheet
Free Cash Flow
5.2B
EBITDA
6.4B
Book Value
$15.16
Total Debt
5.5B
What Do Analysts Say About ADP?
Low
$225.00
Average
$286.40
High
$322.00
Upside
+3.8%
ADP Fair Value FAQ
What is the fair value of ADP?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), ADP's estimated fair value is $200.34. The stock is currently trading at $275.90, which makes it overvalued by our analysis.
How is ADP's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is ADP overvalued or undervalued?
Based on our analysis, ADP is overvalued. The current price of $275.90 is 27.4% above our estimated fair value of $200.34.
What do Wall Street analysts say about ADP?
15 analysts cover Automatic Data Processing with a consensus rating of "Hold." The average price target is $286.40, ranging from $225.00 to $322.00. This implies 3.8% upside from the current price.