Added to YB: 2026-10-07
Pitch date: 2026-10-02
ADP [neutral]
Automatic Data Processing, Inc.
+11.6%
current return
Author Info
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Company Info
Automatic Data Processing, Inc. provides cloud-based human capital management (HCM) solutions worldwide.
Market Cap
$103.1B
Pitch Price
$255.96
Price Target
287.57 (+1%)
Dividend
2.61%
EV/EBITDA
15.90
P/E
23.79
EV/Sales
4.75
Sector
Professional Services
Category
value
Compounder Watchlist, Edition 1: Ten Names, One Below Its Range - Automatic Data Processing, Inc.
ADP (monitor): Automatic Data Processing looks fairly priced at $263.79, 1.4% below the midpoint of a $240-$295 fair-value range based on $11.50 of normalized earnings at 21-25.5x. Fiscal Q4 revenue grew 6.8% and beat expectations, while trailing operating margin is 26.5% and the dividend yields 2.58%. The downside triggers are two consecutive quarters below 4% revenue growth or trailing operating margin below 24%.
Read full article (1 min)