Automatic Data ProcessingStock 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 is very stable.
  • This company has amazingly consistent growth!
  • This company has an average dividend yield.
  • This stock looks overpriced.
  • This company is making money at a modest rate.

ADP Free Cash Flow Trend

Based on historical returns, we believe that Automatic Data Processing can grow its free cash at a rate of about 5%. That's positive!

Free Cash Flow trendline for ADP
Free Cash Flow trendline for Automatic Data Processing

Inside the ADP Numbers

ADP Price
(Automatic Data Processing stock price per share)
$116.02
[?] ADP Fair Price
(based on intrinsic value)
$40.24
[?] ADP Safety Price (based on a variable margin of safety) $32.19
[?] PE Ratio versus Sector 78% higher than other Technology stocks
[?] PE Ratio versus Industry 15% lower than other Business Software & Services stocks
[?] Cash Yield 3.79%
[?] Free Cash Flow Jitter 9%
[?] Dividend Yield 2%

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.