What Is ADP Fair Value?
Automatic Data Processing (ADP) fair value estimate using multiple valuation models, updated daily.
As of August 29, 2026, Automatic Data Processing (ADP) has a composite fair value estimate of $202.33 based on four valuation models: DCF (35% weight), Graham Number (25% weight), PEG (25% weight), and DDM (15% weight). The current market price is $287.48, suggesting the stock is overvalued by 29.6%.
Data as of August 29, 2026 (today)
Composite Fair Value
Overvalued4 of 4 models$202.33
vs. current price of $287.48(-29.6%)
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 →
$314.96
+9.6%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 →
$172.21
-40.1%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 →
$64.66
-77.5%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.
$122.57
-57.4%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 $287.48 is 9.6% 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 | $5.34B |
| Year 3 | $6.93B | $5.39B |
| Year 4 | $7.61B | $5.43B |
| Year 5 | $8.36B | $5.48B |
| Year 6 | $9.17B | $5.53B |
| Year 7 | $10.07B | $5.58B |
| Year 8 | $11.05B | $5.63B |
| Year 9 | $12.13B | $5.68B |
| Year 10 | $13.32B | $5.73B |
| Terminal Value | $216.93B | $93.39B |
What Are ADP's Key Financial Metrics?
Earnings & Growth
Current Price
$287.48
EPS (TTM)
$11.04
Forward P/E
21.5
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
$287.27
High
$322.00
Upside
-0.1%
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 $202.33. The stock is currently trading at $287.48, 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 $287.48 is 29.6% above our estimated fair value of $202.33.
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 $287.27, ranging from $225.00 to $322.00. This implies 0.1% downside from the current price.