Automatic Data Processing, Inc. (ADP): Price and Financial Metrics

ADP Stock Price Chart Interactive Chart >

ADP Price/Volume Stats

Automatic Data Processing, Inc. (ADP) Company Bio

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

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 28th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Automatic Data Processing Inc, consider:

• As a business, ADP is generating more cash flow than 96.38% of positive cash flow stocks in the Industrials.
• The business' balance sheet suggests that 3% of the company's capital is sourced from debt; this is greater than just 13.69% 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 3%; for context, that number is higher than 47.83% of tickers in our DCF set.

For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ADP, try HON, TDG, CSWI, HEI, and PMTS.