Automatic Data Processing Stock Price and Value Analysis

Should you buy Automatic Data Processing stock? (NasdaqGS:ADP). Let's see how it does in our automated value investing analysis system.

AdvantagesDisadvantages
  • This company has an average dividend yield.
  • This company has stable growth.
  • This company is very stable.
  • This company is making money at a modest rate.
  • This stock looks overpriced.

Inside the ADP Numbers

ADP Price
(Automatic Data Processing stock price per share)
$248.79
[?] ADP Fair Price
(based on intrinsic value)
$40.47
[?] ADP Safety Price (based on a variable margin of safety) $32.38
[?] PE Ratio versus Sector 229% higher than other Industrial Goods stocks
[?] PE Ratio versus Industry 7% higher than other Unknown stocks
[?] Cash Yield 1.86%
[?] Free Cash Flow Jitter 14%
[?] Dividend Yield 2%
Shares Shorted 5,852,632

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 5,852,632 shares shorted. With 414,627,024 shares available for purchase and an average trading volume over the past 10 trading days of 1,556,510, it would take at least 3.76 days for all of the short holders to cover their shorts.

Is Automatic Data Processing Stock on Sale?

We believe that Automatic Data Processing may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Automatic Data Processing looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy ADP Stock?

Does Automatic Data Processing have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.