ADP has a higher market value than 97.2% of US stocks; more precisely, its current market capitalization is $66,679,035,007.
With a one year PEG ratio of 549.71, Automatic Data Processing Inc is expected to have a higher PEG ratio (a measure of how expensive a stock is relative to its expected earnings growth) than 93.5% of US stocks.
Automatic Data Processing Inc's stock had its IPO on January 1, 1986, making it an older stock than 92.89% of US equities in our set.
If you're looking for stocks that are quantitatively similar to Automatic Data Processing Inc, a group of peers worth examining would be INFY, BKNG, ANTM, SHW, and MMC.
Automatic Data Processing offers a range of business outsourcing and HCM solutions, including: Payroll Services, Benefits Administration, Talent Management, Human Resources Management, Time and Attendance Management, Insurance Services, Retirement Services and Tax, Compliance and Payment Solutions. The company was founded in 1949 and is based in Roseland, New Jersey.
ADP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ADP, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Automatic Data Processing Inc ranked in the 26th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 58.5%. In terms of the factors that were most noteworthy in this DCF analysis for ADP, they are:
The company has produced more trailing twelve month cash flow than 93.62% of its sector Industrials.
The business' balance sheet suggests that 3% of the company's capital is sourced from debt; this is greater than only 11.5% of the free cash flow producing stocks we're observing.
ADP's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 47.01% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ADP, try KNL, ROK, SYEV, CAT, and DCO.
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This article was co-produced with James Marino Sr. of Portfolio Insight Dividend Radar is a free, weekly auto-generated spreadsheet of dividend growth stocks with dividend increase streaks of five years or more. Since its launch in May 2020, we have received excellent feedback from the community and many suggestions for...
NEW YORK , Sept. 10, 2020 /PRNewswire/ -- World Trade Resource (WTR), a data-driven, technology-enabled workforce solutions organization has named Senior Vice President and General Manager at Automatic Data Processing (ADP) Dr. Kristin Walle to the WTR Advisory Board. … Full story available on Benzinga.com
Identified for having the most striking impact in the human capital management (HCM) market, ADP was recognized as a winner in Ventana Research's 13th Annual Digital Innovation Awards for its Next Gen HCM platform. Named as winner for the HCM category, ADP was selected based on the award program's stringent criteria, earning acclaim for Next Gen HCM's advanced technology and ability to drive change and increase value for organizations worldwide.