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Automatic Data Processing, Inc. ADP NASDAQ

NASDAQ Global Select • Industrials • Staffing & Employment Services • US • USD

SharesGrow Score
72/100
4/7 Pass
SharesGrow Intrinsic Value
$280.34
+43.7%
Analyst Price Target
$270.50
+38.7%
SharesGrow 7-Criteria Score All 7 criteria scored · valuation-related highlighted on this page

Automatic Data Processing, Inc. (ADP) trades at a trailing P/E of 18.8, forward P/E of 17.8. Trailing earnings yield is 5.32%, forward earnings yield 5.62%. PEG 1.94. Graham Number is $61.12.

Criteria proven by this page:

  • VALUE (59/100, Partial) — mixed signals — some valuation metrics are favorable while others are stretched.
  • Forward P/E 17.8 (down from trailing 18.8) — analysts expect earnings to grow, which would improve the valuation.
  • PEG Ratio 1.94 — between 1.0–2.0 indicates moderate valuation relative to growth.
  • Trailing Earnings Yield 5.32% — exceeds typical bond yields (~4.3%), making equity attractive vs fixed income. Forward yield improves to 5.62% as earnings recover.
  • Analyst consensus target $270.50 (+38.7% upside) — significant upside potential according to Wall Street analysts.

Overall SharesGrow Score: 72/100 with 4/7 criteria passed.

SharesGrow 7-Criteria Score
72/100
SG Score
View full scorecard →
~
VALUE
59/100
Price-to-Earnings & upside
Proven by this page
~
FUTURE
52/100
Analyst consensus
→ Forecast
PAST
100/100
→ Income
~
HEALTH
67/100
Debt-to-Equity & liquidity
→ Health
MOAT
84/100
→ Income
GROWTH
73/100
→ Income
INCOME
70/100
→ Income

Valuation Snapshot — ADP

Valuation Multiples
P/E (TTM)18.8
Forward P/E17.8
PEG Ratio1.94
Forward PEG1.80
P/B Ratio12.45
P/S Ratio3.76
EV/EBITDA12.7
Per Share Data
EPS (TTM)$10.49
Forward EPS (Est.)$10.97
Book Value / Share$15.83
Revenue / Share$52.54
FCF / Share$11.38
Yields & Fair Value
Earnings Yield5.32%
Forward Earnings Yield5.62%
Dividend Yield3.29%
Graham Number$61.12
SharesGrow IV$280.34 (+43.7%)
Analyst Target$270.50 (+38.7%)

Historical Valuation

Year P/E (TTM) PEG Ratio P/B Ratio P/S Ratio Dividend Yield
2016 28.1 2.29 9.37 3.60 2.25%
2017 26.5 1.43 11.54 3.71 2.17%
2018 36.5 3.44 17.08 4.43 1.80%
2019 31.6 1.36 13.40 5.11 1.79%
2020 26.0 2.98 11.15 4.40 2.29%
2021 32.6 5.05 14.93 5.64 1.86%
2022 29.8 1.94 27.27 5.33 1.89%
2023 26.6 1.55 25.91 5.05 2.09%
2024 25.8 2.39 21.28 5.04 2.26%
2025 30.8 3.20 20.29 6.11 1.91%

EPS: Actual vs Estimates

P/E Ratio & Earnings Yield

Earnings Per Share (EPS) History

Year EPS (Diluted) Revenue Net Income Net Margin
2016 $3.25 $11.29B $1.49B 13.2%
2017 $3.85 $11.98B $1.73B 14.5%
2018 $3.66 $12.86B $1.62B 12.6%
2019 $5.24 $13.61B $2.29B 16.8%
2020 $5.70 $14.59B $2.47B 16.9%
2021 $6.07 $15.01B $2.6B 17.3%
2022 $7.00 $16.5B $2.95B 17.9%
2023 $8.21 $18.01B $3.41B 18.9%
2024 $9.10 $19.2B $3.75B 19.5%
2025 $9.98 $20.56B $4.08B 19.8%

Analyst Estimates

Year EPS (Avg) EPS Range Revenue (Avg) Revenue Range Analysts
2026 $10.97 $10.92 – $11.00 $21.8B $21.74B – $21.87B 12
2027 $12.00 $11.31 – $13.05 $23.06B $22.75B – $23.28B 12
2028 $13.02 $12.26 – $13.29 $24.41B $24.38B – $24.44B 10
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