With a market capitalization of $56,239,474,974, Automatic Data Processing Inc has a greater market value than 96.64% of US stocks.
ADP's one year PEG ratio, measuring expected growth in earnings next year relative to current common stock price is 463.64 -- higher than 92.92% of US-listed equities with positive expected earnings growth.
Automatic Data Processing Inc's stock had its IPO on January 1, 1986, making it an older stock than 92.81% of US equities in our set.
Stocks with similar financial metrics, market capitalization, and price volatility to Automatic Data Processing Inc are MMC, INFY, ECL, PGR, and ANTM.
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:
We started the process of determining a valid price forecast for Automatic Data Processing Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Automatic Data Processing Inc ranked in the 27th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 53.17%. In terms of the factors that were most noteworthy in this DCF analysis for ADP, they are:
As a business, ADP is generating more cash flow than 93.39% of positive cash flow stocks in the Industrials.
The business' balance sheet reveals debt to be 4% of the company's capital (with equity being the remaining amount). Approximately merely 12.32% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
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 46.01% 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 UUU, CECE, IEX, VRSK, and FORR.
Strategic advisory and futurist analyst firm Constellation Research has recognized ADP on four of its Constellation ShortLists, which aim to help prospects and customers narrow their search for the technologies they need to meet their digital transformation goals. Reinforcing its position as a leading global technology company providing human capital management (HCM) solutions, ADP made the ShortLists for Compensation Management, Global HCM, Payroll for North American Small and Medium-sized Businesses (SMBs), and Workforce Management.
WHAT: ADP Research Institute® will release the September findings of the ADP National Employment Report, ADP Small Business Report and ADP National Franchise Report on Wednesday, September 30, 2020 at 8:15 a.m. ET.
While HR professionals report new challenges during the pandemic, many Canadians remain unaware of HR's roleTORONTO, Sept. 23, 2020 /CNW/ - Hiring and recruiting, handing out paycheques - these are some of the tasks that often come to mind when we think about HR, but human resources teams handle so much more.
Automatic Data Processing, Inc. (ADP) Deutsche Bank Technology Conference Call September 15, 2020 9:40 A.M. ET Company Participants Kathleen Winters - Chief Financial Officer Conference Call Participants Bryan Keane - Deutsche Bank Presentation Bryan Keane Good morning, it’s Bryan Keane Senior Payments Processors and IT Services Analyst at Deutsche Bank,...
SA Transcripts on Seeking Alpha | September 15, 2020
Automatic Data Processing (ADP) is a "premium" company. What I mean by this is that its valuation typically trends to follow at least several numbers of multiples above what I would typically consider "fair value". Reviewing such a company is tricky because its continued success and positive returns hinge very...